The Boeing catastrophe — What went wrong and why the CEO is stepping down
Madison, WI — Boeing has long faced controversy over the quality control of their aircrafts, but it has reached a new low in light of recent events. The company’s lack of direction and general alleged safety negligence has led CEO Dave Calhoun to resign, giving investors a deserved break from their losses.
Following crashes of two 737 MAX airplanes in 2018 and 2019, causing the death of over 346 people, Calhoun was appointed CEO in early 2020 to guide the company through these challenges. However, his time as CEO has been marred with issues of quality control and a decline in Boeing’s reputation of integrity.
Investigators from the Department of Justice determined that a faulty maneuvering system, the Maneuvering Characteristics Augmentation System (MCAS), caused these crashes. In court documents for criminal charges, Boeing admitted to cutting corners and defrauding the Federal Aviation Administration (FAA). This settlement resulted in a fine worth over $2.5 billion.
“Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception. This resolution holds Boeing accountable for its employees’ criminal misconduct, addresses the financial impact to Boeing’s airline customers, and hopefully provides some measure of compensation to the crash-victims’ families and beneficiaries.” — Acting Assistant Attorney General David P. Burns
Boeing’s alleged negligence continued however, in an incident involving an Alaska Air jetliner this January. The jetliner, a Boeing 737 Max 9, blew out a panel door mid-flight and endangered all of its passengers. The pilots were able to land safely and no passengers were injured.
This made it all too clear that Dave Calhoun oversaw a company and culture that did not prioritize the safety and well-being of their passengers, and took shortcuts that resulted in endangered lives. All for the sake of the company’s profit margin.
This incident garnered international criticism, and external pressure from stakeholders caused Calhoun to step down from CEO at the end of 2024. Following this announcement, Boeing stock rose by 5% in premarket trading while being down 28% over this year.
