Recently, Boeing 737 max 8 has crashed; killing all 157 people on board and 189 in another recent crash.
The two crashes which killed everyone on board had very similar characteristics. For example, both planes lost altitude after take off and crashed indicating a problem with the manufacturing of the planes as this plane was brand new (BBC News, 2019). The response from airlines is to withdraw Boeing 737 max 8 from flight. Boeing faces questioning after these incidents and have responded well to these problems. Boeing are suggesting they will release a software update to stop the problem from happening. They believe it is a problem with the anti-stall system as shown from a previous crash where 189 people were killed. Although, the report from the recent crash have not yet been discovered or published, it highlights a response from Boeing as this ‘simply doesn’t happen in this industry’ said former Inspector General of the US Transportation Department. But, Boeing haven’t officially responded to the crash but has ensured they will send out technicians to investigate the crash site (euronews, 2019).
The response has been dismissed as Boeings market value dropped 12% after the first crash in Indonesia. The reply from Boeing could have been improved and highlights a need for better more integrated leadership. Boeing don’t want consumers losing trust in the brand and their product but without a good response market share will decrease as it has. The CEO or executive should have responded with a calming statement and actions for the future. This form of autocratic leadership has hindered Boeing and their market value. Boeing should be ensuring consumers feel safe and feel like the business cares about the deaths they have caused. This would limit the damage to their market value already experienced. Moreover, many airlines have grounded the Boeing 737 max 8 in order to prevent further crisis. Boeing should have recalled all 737’s, although a very large task for such a large corporation. But as customers lives are at risk, it is necessary to recall the planes to improve and fix the problems properly. A recall suggests that Boeing cares about customers and people flying in their aircrafts, reducing the impact of a disaster like this on Boeing’s operations and revenues. This inability or unwillingness to recall the planes suggests inefficient operational management and incompetency by the company; It could come off as almost lazy by the brand. They have already killed over 300 people and should be taking large steps to correct this.
Overall, Boeing are not doing enough in response to these disasters caused by their aircrafts. They haven’t even released an Official statement or investigation just some ‘technicians to offer support’ which highlights complete laziness and incompetency in the leadership of Boeing. They should be doing everything in their power to ensure no more 737 go down with lives on board. Not only does it affect Boeing as a business but the airlines who have trusted Boeing to build safe and durable aircrafts. They will have financial implications due to these problems as their planes are now grounded and are unwilling to fly due to the crash problems. The leaders in Boeing should be acting faster and more effectively to limit damage and again highlights poor leadership.
references;
euronews. (2019). Ethiopia crash: Boeing 737 MAX back in spotlight after second fatal accident. [online] Available at: https://www.euronews.com/2019/03/11/boeing-s-737-max-back-in-spotlight-after-second-fatal-crash [Accessed 11 Mar. 2019].
BBC News. (2019). Boeing faces questions after Ethiopia crash. [online] Available at: https://www.bbc.co.uk/news/world-africa-47519467 [Accessed 11 Mar. 2019].
alex's business blog 