TLDR:
Boeing is facing a difficult balancing act as the company tries to navigate the ongoing 737 Max crisis. The company needs to demonstrate to regulators and customers that it takes safety seriously, while also assuring investors about its financial outlook. As Boeing prepares to release its fourth-quarter earnings report, executives are grappling with how much to discuss quality control and safety issues. The National Transportation Safety Board is expected to release a preliminary report on a recent incident involving a Boeing 737 Max 9 jet, which could increase scrutiny of the company. Some experts argue that Boeing’s safety problems are linked to its emphasis on profits and shareholder returns, rather than investing in safety and engineering.
Less than four weeks after a hole blew open on a Boeing 737 Max 9 jet during a flight, the company faces the question of whether to prioritize safety or financial performance.
The incident, which occurred on an Alaska Airlines flight, is still under investigation, but company executives must now determine how much to discuss quality control while also reassuring shareholders.
The National Transportation Safety Board is expected to release a preliminary report on the incident, which could further scrutinize Boeing by lawmakers, airlines, and safety groups.
Boeing’s chief executive, Dave Calhoun, is expected to address safety during the company’s investor call, but it is unclear how much the executives will emphasize safety as they try to contain the fallout from the Max 9 incident.
The incident gained new significance after reports emerged that Boeing workers had opened and reinstalled a panel, known as a door plug, which later tore away from the plane shortly after takeoff.
Some industry experts argue that Boeing’s safety issues are a result of the company prioritizing profits and shareholder returns over investing in engineering and safety.
