Dennis Muilenburg has been given the boot at Boeing, disguised of course as a resignation at the executive levels. AirInsight was the first to editorially call for this move on October 3rd. This move was primarily for his handling of the 737 MAX crisis, which we can only describe as a future business school case of how not to handle a crisis situation. But it was also likely given the negative news surrounding virtually every Boeing program.
The MAX, with two crashes resulting from an a deeply flawed MCAS system that Boeing hid from both the FAA and pilots should never have been implemented using a single sensor. Boeing‘s outsourcing of software to low-priced contractors apparently resulted in a system that failed to meet the design specifications, but was never corrected before aircraft production began. After a first crash, rather than ground the fleet and immediately fix or disconnect a flawed system, Boeing instead chose to delay a fix until the introduction of the MAX10 model, but a second crash scrapped those plans. That decision will likely cost the company $14 billion plus based on our estimates.
The Boeing announcement that it is temporarily suspending production of the 737 MAX has resulted in uncertainty and confusion throughout the industry, as the lack of transparency that is the Boeing modus operandi has once again raised its ugly head. The employees at its Renton plant first heard of the shutdown from the news media rather than the company itself, which reflects the arrogance of Boeing’s management team, and the supply chain is still awaiting word on what actions Boeing is going to take and when. So much for partnering for success – as real partners talk to each other and know what’s going on. In this case, Boeing’s silence speaks volumes.
Meanwhile, an Irish-based aircraft lessor is now suing Boeing for damages, and the head of JetBlue spoke about the Boeing backlash in his forward look at 2020. The news continues to get worse, with the typical Boeing arrogance when it comes to their employees, suppliers, and the media – dead silence or press-releases that obfuscate more than inform.
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