Boeing CEO Dave Calhoun and other top company leaders are gearing up to meet with the Federal Aviation Administration on Thursday to address a recent incident involving a near-catastrophic blowout of an airplane door panel on a new 737 Max 9. This meeting comes after the FAA ordered Boeing to come up with a quality improvement plan within 90 days following the alarming incident on an Alaska Airlines flight in early January.
The fallout from the airplane door panel incident has once again marred Boeing’s reputation, subjected the company to increased federal scrutiny, and forced it to slow down production of the 737 Max. This has resulted in delays for airline customers like United and Southwest, who have had to adjust their growth plans as a result of the aircraft delays. Additionally, Boeing Chief Financial Officer Brian West has indicated that the company is expecting to burn cash rather than generate it this year, with an estimated $4 billion being used in the current quarter alone.
Boeing executives have admitted that the proposed 90-day plan is not a quick fix solution to the company’s issues. CFO Brian West emphasized at an investor conference that the plan is just the beginning of a series of steps that Boeing needs to take to regain the trust of stakeholders and customers alike. The feedback received after the presentation to the FAA will be crucial in guiding Boeing’s future actions and strategies.
Improvements in Training and Production
Boeing’s update on Thursday is expected to outline the measures taken to enhance staff training and production practices. These include providing simplified instructions for mechanics, ensuring tool availability, and reducing so-called traveled work where tasks are completed out of sequence. The company will also shed light on its approach to factory “stand-downs,” during which work is temporarily halted to engage in conversations with employees about potential production line enhancements. These initiatives were put in place following the door panel incident on the Alaska Airlines flight earlier this year.
Boeing is facing a critical juncture in its history as it navigates through the aftermath of the recent quality control issues. The meeting with the FAA presents an opportunity for Boeing to demonstrate its commitment to safety, while also showcasing the concrete steps taken to improve training and production practices. Only time will tell if Boeing’s efforts will be sufficient to restore its reputation and regain the trust of the aviation industry and the public.