This podcast discusses the problems plaguing Boeing, including mechanical and engineering setbacks, the history and culture of the company, and a shift away from safety and engineering in favor of shareholder satisfaction. It also explores the financial pressures faced by Boeing, the differences between Airbus and Boeing, and the strained relationship between Boeing and the FAA. Additionally, it delves into the rise of Chinese aerospace manufacturer Comak and its potential impact on the global aircraft market.
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Quick takeaways
Boeing's shift from an engineering focus to prioritizing financial metrics had negative consequences for product development and safety measures.
Boeing's recent problems have impacted engineer morale, recruitment, and the company's attractiveness to new engineering talent.
Deep dives
The history and cultural impact of Boeing
Boeing is a historically significant and iconic American company in the aerospace industry. It has played a major role in shaping the US economy and has been a dominant leader in commercial aviation. The company has faced challenges in recent years, with issues surrounding the 737 Max aircraft and a decline in market share compared to its main competitor, Airbus. The downfall of Boeing raises questions about American manufacturing, the structure of the economy, and concentration of corporate power.
The shift in Boeing's corporate culture and management
Boeing's corporate culture and management approach have evolved over time. In the past, the company had a strong engineering focus and a commitment to product quality and innovation. However, with changes in leadership and the influence of the financial mindset, the culture shifted towards prioritizing financial metrics and shareholder value. This change in focus had implications for product development, safety measures, and overall decision-making within the company.
The impact on employees and engineering morale
The issues faced by Boeing have had a significant impact on the morale of its engineers and employees. There has been turnover and challenges in recruitment and hiring. Some engineers have expressed concerns about the transferability of their skills to other companies in the aerospace industry and have noted the importance of Boeing's historical knowledge and specialization. The company's reputation and recent problems have also made it less attractive for new engineering talent.
The future outlook for Boeing
The future outlook for Boeing remains uncertain. While efforts are being made to address the issues and renew the safety culture within the company, there are concerns about the potential for future crises and the long-term impact on Boeing's market position. The rise of competitors like the Chinese aerospace manufacturer COMAC also adds to the challenges faced by Boeing. The company will need to demonstrate sustainable improvements and regain customer trust in order to regain its position as a leading player in the aerospace industry.
On Jan. 5, the plug door of an Alaska Airlines 737 Max 9 blew out mid-flight, forcing the plane into an emergency landings with a large hole in fuselage. Miraculously, nobody was hurt or killed, but it could have been a disaster. And it was the latest in the persistent string of mechanical and engineering setbacks that have plagued Boeing over the last six years. Of course, the company went into crisis mode in late 2018 and early 2019 when two different 737 Max planes crashed, killing 346 people combined. So what's wrong with Boeing? It's a crucial question, since the company is arguably America's pre-eminent manufacturer and one of the only two dominant global players in commercial jets. On this episode we speak with Bloomberg investigative reporter Peter Robison, the author of Flying Blind: The 737 MAX Tragedy and the Fall of Boeing. We discuss the company's problems, its history and culture, and how it lost its focus on safety and engineering in favor of a focus on pleasing shareholders.