Boeing Faces Ongoing Safety Challenges Amid Cultural Shift Efforts

Boeing is navigating another turbulent year as it works to rebuild its reputation following a series of safety and quality issues, including a mid-air door panel blowout on a 737 Max 9 operated by Alaska Airlines in January 2024. The incident, which occurred at 16,000 feet, terrified passengers but resulted in no serious injuries. A preliminary National Transportation Safety Board report revealed that key bolts were missing before the aircraft left Boeing’s Renton, Washington factory, further damaging the company’s standing as a leading U.S. exporter.

Boeing’s stock price has plummeted more than 30% over the past year, starkly contrasting with the S&P 500‘s 27% gain. The company has initiated sweeping changes, including executive reshuffling, enhanced worker training, and random quality audits at its factories. Boeing reported significant reductions in defects in 737 fuselages produced by supplier Spirit AeroSystems and has minimized ‘traveled work,’ where tasks are completed out of sequence, to curb production flaws.

Federal Aviation Administration (FAA) Administrator Michael Whitaker emphasized that Boeing’s recovery is a long-term endeavor. ‘What’s needed is a fundamental cultural shift at Boeing that’s oriented around safety and quality above profits,’ Whitaker stated. The FAA has increased oversight of Boeing, capping 737 Max production at 38 jets per month and maintaining heightened scrutiny indefinitely.

Boeing’s challenges extend beyond the 737 Max. The company has not posted an annual profit since 2018, the year of two fatal 737 Max crashes that killed 346 people. Since then, quality issues have delayed deliveries of the 737 Max, 787 Dreamliner, and Air Force One aircraft. Boeing has lost over $30 billion since 2019, prompting new CEO Kelly Ortberg to focus on core operations and reduce the workforce by 10%.

Ortberg, who took the helm in August 2024, has prioritized factory visits and employee engagement. Despite a recent two-month machinists’ strike, Boeing has resumed production, though it remains behind rival Airbus in delivery volumes. Ortberg has pledged to address systemic issues, stating, ‘We’re better off doing less and doing it better than doing more and not doing it well.’

Outgoing U.S. Transportation Secretary Pete Buttigieg echoed the need for sustained cultural change at Boeing. ‘There were real deficiencies… there is much more to do,’ Buttigieg said in a recent interview. The FAA’s ongoing audits and Boeing’s internal reforms aim to restore confidence in the company, but industry experts caution that full recovery will take years.