Boeing is in the spotlight again!

Aircraft maker Boeing is in the spotlight again after its 737 airplane crashed in China Guangxi region killing all 132 on board. It comes as the billion dollar company has faced severe backlash after its two international 737 Max planes crashed in 2018 and 2019 resulting in 346 deaths. But is this the first time Boeing has been on the radar? Here’s the rap sheet. 

737 Max Settlement

In 2021, Boeing’s board agreed to pay $237.5 million settlement over a lawsuit brought by major institutional shareholders alleging the board’s safety oversight of 737 Max aircraft which grounded for 20 months following two fatal crashes that killed 346 people.

787 Dreamliner Defects Expand

In September, 2020 the Federal Aviation Administration (FAA) started investigating manufacturing flaws in the 787 Dreamliner. Boeing was able to resume deliveries in March 2021, but they were halted again in May after the FAA raised concerns about its inspection methods. In July, the FAA said the nose of the planes had manufacturing quality issues and must be fixed before delivery to customers. In October, Boeing announced it had been improperly manufacturing Dreamliner parts for the past three years and defects included parts that make up the 787’s wing, fuselage and tail.

787 Lithium Battery Fires

In 2013, Boeing’s 787 Dreamliner caught fire from a lithium-ion battery due to design flaws. US accident investigators said the FAA should never have certified the plane. A federal official accused Boeing of submitting flawed safety test results.

737 Crash

In 2009, a Boeing 737 crashed near Amsterdam’s Schiphol Airport killing nine people and injuring many others. Boeing and US officials pressured Dutch investigators to erase or amend initial findings in their investigations that blamed Boeing’s ‘Design Shortcomings’, instead they sought to put the blame on the pilots.

Improper Use of Competitor Information

In 2006, Boeing agreed to pay $615 million to settle criminal and civil allegations that it improperly used competitors' information to procure contracts for launch services worth billions of dollars from the Air Force and NASA.

Documents Obtained From Competition

In 2003, Boeing was stripped off $1 billion in potential revenue by the US Air Force after obtaining documents stolen from its rival Lockheed Martin during contract competition for military satellites.

Faulty Pump Wiring

In 2002, the FAA ordered the inspection of more than 1,400 Boeing aircraft for potentially faulty fuel pumps that could cause explosions. Inspections found chafed or misaligned wires in pumps that suddenly stopped working during flights and damaged wires had the potential to cause sparks and explosions.

Defective Helicopter Gears

In 2000, Boeing agreed to pay $54 million to resolve two whistle-blowers lawsuits which charged the company with placing defective gears in CH-47D Chinook helicopters and  selling the aircraft to the US Army.

Fuel Pumps and Valves Faulty

In 1997, the FAA ordered immediate replacements on the fuel pumps of all 747s and in 1998 it grounded over 170 Boeing aircraft. In 1999, more than a year after Boeing had known of the safety defects in the fuel valves of its 757 jets. It failed to inform regulators. The FAA proposed a $392,000 fine. In 2016, the FAA again ordered checks on fuel valves on a wide range of Boeing aircraft including the 737,757,767 and 777 jets.

Faulty Fire Extinguishers

In 1989, the FAA had proposed a fine of $200,000 against Boeing for failing to promptly report that the fire extinguishers on two 757s were faulty.

Japan Air Disaster

In 1985, A Boeing 747 crashed in Japan killing 520 of the 524 people on board. A month after the crash Boeing admitted that it made faulty rear-cabin repairs.

Boeing has experienced catastrophic financial losses in the wake of the evolving 737 MAX situation.Boeing has seen fit to postpone development of at least one critical project. Following the grounding of the 737 MAX, Boeing has suspended all deliveries of the aircraft to customers and slowed its production schedule.

It is clear from the above rap sheet that the companies should be proactive about risk management and conduct broad risk assessments on a regular basis. Such assessments should monitor for threats across strategic and tactical vectors. From broad-based standpoints such as ensuring clear and independent reporting lines, to granular measures such as monitoring high-risk employee communications, risk management efforts must be comprehensive. Finally, it is vital that key stakeholders up and down a company’s chain of command “buy in” to the importance of risk management and participate in the process in a transparent and cooperative manner. It is incumbent upon company leadership to ensure that a “culture of risk awareness and management” is present at all levels of the organization.