On Monday, Boeing shares suffered a significant drop following the crash of a Boeing 737-800 jet in South Korea. The tragic incident, considered the deadliest aviation disaster in the country’s history, claimed the lives of 175 passengers and four of the six crew members. Investigations into the crash are currently underway.
Experts Highlight Key Differences from 737 Max Issues
Aviation experts emphasize that the crash of the 737-800 is unrelated to the earlier problems of the 737 Max. “It would be inappropriate to compare this incident with the deadly 737 Max crashes,” said Alan Price, a former chief pilot at Delta Air Lines. “The 737-800 is a proven aircraft.”
The year 2024 has already been challenging for Boeing, and the recent crash has further exacerbated the situation. Since the start of the year, the company’s stock has declined by over 30%. Public trust in the brand remains shaken by the 737 Max crashes in 2018 and 2019, which resulted in 346 fatalities.
Production Stalled Amid Prolonged Strike
A strike involving 33,000 employees in the autumn caused severe delays in the production of the 737 Max, 777, and 767 models. The seven-week strike ended with a labor agreement that included a 38% wage increase over four years. However, supply chain disruptions and production challenges persist.
In July, Boeing faced further criticism after admitting to deceiving the U.S. Federal Aviation Administration (FAA) during the 737 Max certification process. A proposed settlement, which included a guilty plea, was rejected by a federal judge, citing concerns about diversity and inclusion policies potentially influencing the selection of a compliance officer.
Renewed Focus on Safety Culture and Rebuilding Trust
Amid mounting pressure, CEO David Calhoun stepped down in August. Since January, approximately 70,000 Boeing employees have participated in workshops aimed at enhancing the company’s safety culture. Despite these efforts, Boeing continues to lag behind its European competitor, Airbus. The company has lost over $23 billion since the 737 Max crashes and struggles with declining sales and deliveries.
The coming months will be critical as Boeing strives to restore customer and public trust while achieving stability in an increasingly challenging market environment.