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Abstract

Boeing, one of the leading aviation giants in the world was engulfed in 737 MAX crises since 2018. The crises which got unfolded after 346 people died in two fatal crashes within five months was linked to the software malfunction in the aircraft. The crash of the two jetliners further put the company under a strict lens. Aviation experts, journalists, regulators, Congress, and the Department of Justice further exposed deep flaws in the corporate culture of Boeing. In addition to this, faulty safety assessment, risky design choices and hasty decision by the company also equally contributed to the crisis. The crisis had further shaken various stakeholders of Boeing including the company's workforce, suppliers, and fliers. Boeing had reported lowest order numbers for the first time in its last thirty-year history (1989 to 2019). Even Boeing's CEO, Dennis Muilenburg had to step down to restore confidence in the company. Boeing's Management had decided to change the leadership of the company and David Calhoun, a board member and executive at Blackstone, joined as the new CEO of Boeing. Under the supervision of the new leader, the company pledged to bring in more transparency. Boeing was also planning for simulator training for pilots prior to the application for complicated FAA certification process. According to experts, the company was hopeful to fly the 737 MAX jet again in 2020. Would Boeing be able to rebuild its relationship with public, customers and regulators? Would the company be able to restore trust by putting people first under the leadership of its new CEO?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2020.

Geographical setting

Region:
World/global

About

Abstract

Boeing, one of the leading aviation giants in the world was engulfed in 737 MAX crises since 2018. The crises which got unfolded after 346 people died in two fatal crashes within five months was linked to the software malfunction in the aircraft. The crash of the two jetliners further put the company under a strict lens. Aviation experts, journalists, regulators, Congress, and the Department of Justice further exposed deep flaws in the corporate culture of Boeing. In addition to this, faulty safety assessment, risky design choices and hasty decision by the company also equally contributed to the crisis. The crisis had further shaken various stakeholders of Boeing including the company's workforce, suppliers, and fliers. Boeing had reported lowest order numbers for the first time in its last thirty-year history (1989 to 2019). Even Boeing's CEO, Dennis Muilenburg had to step down to restore confidence in the company. Boeing's Management had decided to change the leadership of the company and David Calhoun, a board member and executive at Blackstone, joined as the new CEO of Boeing. Under the supervision of the new leader, the company pledged to bring in more transparency. Boeing was also planning for simulator training for pilots prior to the application for complicated FAA certification process. According to experts, the company was hopeful to fly the 737 MAX jet again in 2020. Would Boeing be able to rebuild its relationship with public, customers and regulators? Would the company be able to restore trust by putting people first under the leadership of its new CEO?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2020.

Geographical setting

Region:
World/global

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