Boeing Stock and the 737 MAX
I’m not going to pretend to know how much of this article in the Seattle Times is correct, but if even most of the information ends up being true, then Boeing has cost itself millions (perhaps billions) of dollars in lawsuit settlements, adjustments, new guarantees, and reputation. The single Lion Air plane crashing due to the 737 MAX systems would have been bad enough, but with the data from that crash, and then a second crash having a similar issue, this is going to be devastating. When the Lion Air crash occurred the results of the analysis were that the pilots were fighting a new automated system put in by Boeing as part of its efforts to make the 737 MAX comparable in flight to the earlier 737. That way, it required no new pilot training and made it much cheaper for airlines purchase and integrate the planes into their fleet. That probably would have been a distressing, but ultimately not too impactful of event. Unfortunately, Boeing’s ham-handed handling of the aftermath may cost the company billions of dollars in legal fees, settlements, and new regulatory requirements. Ethiopia Airlines Crash After the Lion Air crash, Boeing essentially blamed the pilots. …
