The 737 MAX Aircraft and the Reputational Damage to Boeing
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$('.blur').html(` most of these planes were grounded for nearly two years. Despite the lifting of the flying ban, Boeing has faced numerous production delays due to manufacturing issues. In December, the company issued a warning about possible loose bolts in the rudder system, and production was previously halted in the summer due to errors in drilling holes in the fuselage.</p>
<p>Naturally, the matter concerning the aircraft’s physical structure implicates the supplier, Spirit AeroSystems, located in Kansas. They are accountable for the emergency door setup that was involved in the incident. Their shares have also suffered a decline in value.</p>
<p>In addition to the financial impact, the bigger consequence of the Alaska Airlines incident may primarily involve damages to the company’s reputation.<br />
The aircraft in question is a MAX 9, which is a longer version of the MAX 8 that was responsible for the 2019 groundings. Alaska and other airlines frequently do not utilize the additional space it provides, therefore they have the option to remove an emergency exit and seal the door instead.</p>
<p>The cockpit of the impacted aircraft had previously displayed a warning light for an auto-pressurization failure. This particular plane was received by Alaska Airlines in November and had only flown approximately 150 times. However, its predecessor, the MAX 9, which shares a similar door design, has successfully completed millions of flights since 2007 without any issues.<br />
The issue may be a singular occurrence, but it is still too premature to make a definitive statement. It is hoped the door plug that was found in an Oregon backyard sometime after the accident could potentially provide crucial evidence needed to determine the cause.</p>
<p>In the event that this problem does prove to be widespread, the consequences would not be catastrophic. The MAX 9 is not as popular as its competitor, the Airbus A321neo, and currently only accounts for 2% of the MAX aircraft ordered from Boeing.<br />
Out of approximately 1,300 MAX jets, there are currently 217 of them being flown by airlines, and 179 are equipped with plugged doors.<br />
Airlines most vulnerable are Alaska and Copa Airlines from Panama, as the MAX 9 makes up 32% and 37% of their capacity respectively. Fortunately, door inspections are a simple process and are unlikely to take more than four hours, with many already being completed without any problems. The fact that these inspections were carried out during the slower winter season mitigates the financial impact for the airlines.<br />
Provided the grounding order is lifted soon, It is unlikely that current orders and production rates will be impacted. Unlike consumer products, jets are not directly marketed to consumers. Therefore, once regulators approve the aircraft, airlines are primarily concerned with flight economics rather than consumer perception.</p>
<p>Despite this, there are repercussions for the continuous negative news coverage. This could potentially lead officials to be more cautious and deliberate in the certification process for Boeing’s MAX 7 and 10 models, which are situated at opposite ends of the size range. It is worth noting that the company has recently requested an exemption for the MAX 7 from safety regulations that aim to prevent engine overheating until May 2026, in order to begin deliveries while working on a solution.<br />
In order to prove its transparency and safety to customers, Boeing is currently introducing additional inspections on its production lines for the 737 Max 9 and allowing airlines to thoroughly examine their factories. They also have plans to involve third-party inspectors. These measures will go beyond the usual regulatory requirements.</p>
<p>According to Boeing executives, they are willing to take responsibility and handle the issue with complete transparency. This comes after facing criticism for initially disregarding previous worries about the 737 Max 8 after the crashes in 2018/19.<br />
According to the president of the commercial airplanes division of the company, Airlines will have access to both Boeing and Spirit’s 737 production facilities for conducting inspections.<br />
According to the statement, “all of our actions must comply with the guidelines outlined in our QMS (quality management system) as anything less is not acceptable. Our adherence to this standard is crucial in instilling complete trust in Boeing airplanes for both our customers and their passengers”.</p>
<p>Boeing and Spirit’s stock prices have experienced a recent partial recovery; however, they have still declined by approximately 35% and 64% in the past five years. In contrast, Airbus’s stock has seen a 62% increase during the same period. If Boeing’s Reputation is to recover it surely can’t afford any more bad news stories about the safety of its aircraft.`);
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<p>The 737 MAX Aircraft and the Reputational Damage to Boeing</p>
<p>It seems that the Alaska Airlines Boeing 737 MAX event on January 6th. Was possibly not the result of a widespread production flaw, however, the Boeing 737 MAX aircraft has been constantly plagued by negative publicity. The company is now having to deal with yet another safety issue and is facing the increased scrutiny that comes with it.<br />
Following the incident, the Federal Aviation Administration issued a grounding order, and Boeing’s stock value dropped by 8% as investors attempted to evaluate the potential impact of the incident. The current stock price is some 19% lower than it was one month ago.</p>
<p>The MAX has gained notoriety as one of the most well-known airplane models in the history <span”blur”>of commercial aviation. After two fatal crashes in 2018/19,</p>
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