Boeing Faces Another Crisis as Fuel Spewing Incident and Prevailing Issues Lead to Shares Falling
The Incident
Beleaguered Boeing has encountered yet another problem with one of its planes, after a San Francisco-bound 777-300 was forced to land in Sydney due to fuel spewing from its landing gear. This incident, which occurred on Monday, marks the fifth incident involving a Boeing plane in just seven days. The forced landing is currently under investigation, with the fluid leaked from the aircraft’s undercarriage being examined.
Series of Issues
Boeing, already facing heavy scrutiny, has experienced a series of technical failures in recent days. Prior to the fuel spewing incident, United Airlines reported an aircraft skidding off a runway in Houston after a rough landing, and a plane to Mexico City being diverted to Los Angeles due to an issue with its hydraulic system. These incidents involved Boeing 777-300 and 737 Max planes, the same models implicated in previous accidents.
The Impact
The string of incidents has had significant consequences for Boeing. Shares dropped more than 4% overnight, resulting in a loss of over $4 billion. In addition, airlines such as United and Southwest have been forced to cut flights and reconsider their capacity forecasts due to the ongoing issues with Boeing planes. Southwest Airlines, which exclusively flies Boeing 737s, has reduced its delivery expectations from 79 to 46.
Alleged Quality Control Concerns
The recent incidents have raised questions about Boeing’s commitment to safety. Former Boeing Quality Manager, John Barnett, who had been involved in a whistleblower retaliation suit against the manufacturer, was found dead in an apparent suicide. Barnett had previously alleged the deliberate use of substandard parts and compromised safety measures on Boeing aircraft. A review by the FAA found instances where Boeing failed to comply with manufacturing quality control requirements.
FAA’s Response
In response to these findings, the FAA has ordered Boeing to develop a comprehensive plan to address the systemic quality control issues within 90 days. The FAA aims to ensure that Boeing commits to making real and significant improvements to its manufacturing processes. Boeing’s CEO, Dave Calhoun, has stated that the company is dedicated to addressing the FAA’s concerns and is committed to enhancing safety standards.
Future Challenges
The recent incidents have not only resulted in financial losses and reputational damage for Boeing but have also impacted airlines dependent on Boeing planes. The ongoing scrutiny and critical evaluation from regulatory bodies and airlines have further delayed the development and delivery of Boeing’s aircraft. As Boeing works to address the various issues and rebuild trust, airlines like United and Alaska are reassessing their capacity forecasts, highlighting the uncertainty surrounding future Boeing deliveries.
