Before the events of January 6, the aircraft had completed 153 flights, including long trips over the Pacific between Hawaii and the mainland United States. It was fortunate that the door plug had not malfunctioned on a prior flight, which could have resulted in a tragic crash. Following the incident, extensive federal investigations were launched by entities such as the NTSB, Congress, the Federal Aviation Administration, and the Justice Department. The FBI informed passengers that they could be considered victims of a crime, and the FAA’s investigation prompted increased oversight of Boeing, including restrictions on aircraft production. Certification of two new versions of the Max by Boeing was also postponed. Testimonies from Boeing whistleblowers during the investigations revealed issues with the company’s practices, emphasizing production speed over aircraft safety, and retaliation against dissenting employees. Boeing claimed to have implemented measures to enhance quality, safety, and encourage employees to voice concerns.
In a criminal plea deal, Boeing admitted guilt to federal charges of deceiving the FAA during the initial certification process for the 737 Max, agreeing to pay fines totaling up to $487 million. The company also accepted oversight from a government-appointed monitor, although a federal judge later rejected the plea due to concerns about the monitor’s selection process.
In June, Boeing successfully launched a crewed mission to the International Space Station using its Starliner spacecraft, carrying NASA astronauts Butch Wilmore and Suni Williams. However, technical issues prevented the planned return of the astronauts, leading to their extended stay on the ISS until a SpaceX Dragon could bring them back to Earth in early 2025.
A strike by 33,000 members of the International Association of Machinists in September halted production of the 737 Max and the company’s freighter aircraft. The strike, triggered by dissatisfaction over a previous pension plan loss, lasted nearly two months before members ultimately accepted a new agreement.
Boeing workers represented by the International Association of Machinists were faced with a pivotal decision when presented with a third offer during contract negotiations. This offer promised an immediate wage increase of 13%, followed by subsequent raises of 9% for each of the next two years, culminating in a 7% raise in the fourth and final year of the contract. Ultimately, this offer amounted to a substantial 43% increase in hourly pay over the life of the contract.
However, the path to reaching this labor agreement was not without obstacles. In October, the Boeing workforce, united under the International Association of Machinists, engaged in a strike that brought the company’s commercial plane production to a standstill. The strike, captured vividly in a march by workers, proved to be a costly endeavor for all parties involved. According to estimates by the Anderson Economic Group, a reputable research firm from Michigan specializing in assessing the financial impact of work stoppages, the strike inflicted losses exceeding $11.5 billion upon Boeing, its employees, and its suppliers.
In the aftermath of the strike, Boeing found itself grappling with the aftermath of significant financial setbacks. The company, facing the necessity of cost-saving measures, announced plans to reduce its global workforce by 10%, amounting to approximately 17,100 employees. These actions were taken in an effort to mitigate losses incurred during the strike and position the company for a more stable financial future.
The repercussions of the strike reverberated through Boeing’s financial performance, with the company reporting a core operating loss of $6 billion in the third quarter, marking one of its most challenging financial periods in recent memory. This setback compounded the existing challenges faced by Boeing, including the ongoing repercussions of the global Covid-19 pandemic and the grounding of the 737 Max aircraft following fatal accidents.
Further contributing to Boeing’s financial woes were the delays and complications surrounding the 777X, its next-generation commercial jet. The company incurred a $3 billion pre-tax charge due to setbacks encountered during test flights, resulting in a revised delivery timeline that extends to 2026. These issues, coupled with the broader operational challenges faced by Boeing, painted a bleak financial picture for the company as it navigated through a series of successive quarters marked by losses.
Looking ahead, Boeing acknowledged the likelihood of continued losses extending into 2025 as it worked towards restoring profitability within its production operations. Since the second fatal crash involving the 737 Max aircraft in early 2019, Boeing has faced a tumultuous period marked by financial losses amounting to $39.3 billion. The sustained financial strain has prompted concerns over the potential downgrade of Boeing’s credit rating to junk bond status, signaling a significant shift for the aerospace giant.
The challenges faced by Boeing throughout the year reached a tragic climax with the incident involving a Jeju Air plane in South Korea. Reports indicated that the aircraft’s landing gear failed to deploy properly, prompting distress calls from the pilots as they attempted to navigate the situation during.
