Boeing shares suffered a significant decline on Monday following the crash of a Boeing 737-800 jet in South Korea. This devastating incident, regarded as South Korea’s deadliest aviation disaster, resulted in the deaths of 175 passengers and four of the six crew members. Investigations into the cause of the crash are ongoing.
737-800 Safety Record Defended by Experts
Aviation experts have stressed that the 737-800 crash is not linked to previous issues with the 737 Max. “It would be inappropriate to draw comparisons with the 737 Max crashes,” stated Alan Price, a former Delta Air Lines chief pilot. “The 737-800 is a proven and reliable aircraft.”
The crash adds to Boeing’s already challenging year. The company’s stock has declined by over 30% in 2024, and public trust remains fragile after the 737 Max tragedies of 2018 and 2019, which claimed 346 lives.
Labor Strikes Add to Boeing’s Woes
In the autumn, a major strike involving 33,000 employees disrupted the production of key Boeing models, including the 737 Max, 777, and 767. The seven-week walkout ended with a labor agreement providing a 38% wage increase over four years. However, supply chain disruptions and production delays continue to hamper recovery efforts.
In July, Boeing faced further challenges after admitting to misleading the U.S. Federal Aviation Administration (FAA) during the certification of the 737 Max. A proposed settlement, which included a guilty plea, was rejected by a federal judge over concerns regarding diversity and inclusion policies influencing compliance oversight appointments.
Rebuilding Trust Amid Mounting Pressure
Under mounting pressure, Boeing CEO David Calhoun stepped down in August. Since January, the company has organized safety workshops for approximately 70,000 employees to strengthen its internal culture. Despite these initiatives, Boeing continues to trail behind its European rival Airbus. The company has lost more than $23 billion since the 737 Max crisis and faces ongoing challenges with declining sales and deliveries.
The coming months will be crucial for Boeing as it seeks to regain customer confidence and achieve stability in a competitive market environment.
