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Baldridge Criteria Boeing 737 NG

Boeing 737 Max was introduced as an upgrade to Boeing 737 NG; this was to enable it to

contend with Airbus. The update was made up of structural design, and this made Boeing 737

susceptible to stalls leading to nose drifting up throughout certain manoeuvres (Johnston &

Harris, 2019). As a remedy, Boeing designed manoeuvring characteristics augmentation systems

(MCAS), this would correct the attacked angle, pushing the nose back down with the pilots

aware of it going on, in theory. Instead, corrupted information from exterior sensors meant that

the MCAS decided that the aircraft was in danger of stalling when it was not. This made the

pilots unaware how to turn it off when the nose was pushed back down by the MCAS, hence

unable to regain control.

High-ranking management treated employees, regulators, and engineers with disrespect

paying no attention to their recommendations and cutting corners on quality as well as safety and

concentrated on profit and schedules on the Boeing 737 max. Ensuring that regulators would

view it as merely a new functionality for an existing order, Maneuvering characteristics

augmentation systems were chosen (Johnston & Harris, 2019). Manoeuvring characteristics

augmentation systems would ensure there is no additional stimulator for training pilots, and

therefore there would be no training for pilots. Despite that this would significantly change

entirely how the pilots operated the aeroplane, the management paid no attention to this and

hence continued to express that no further training was needed for the pilots.

The financial and market of the Boeing 737 in the aircraft industry has shown an extreme

level of resiliency in the aircraft sector. In the aviation sector of the Boeing 737, it does

demonstrate the strengths and the value worth of these aircraft types (Cruz & de Oliveira Dias,
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2020). Within a particular time, there has been an upward trend allowing the aircraft to grow

hence the efficiency of the aircraft industry. The Boeing 737 has had some upward trend based

on the years it has been in business; therefore, it has recorded a passenger’s traffic record that has

led to the utilization of the rates.

In the early years, the aircraft leasing of Boeing 737 has developed to symbolize about

forty percent of service delivery to become an essential part of the aircraft industry (de Oliveira

Dias et al. 2020). Some lenders engage in the building of portfolios with a balanced strategy for

enhancement of Boeing 737, consequently builds up competition among other aircraft in the

aviation industry. Engagements of the lenders to the Boeing 737 have, in turn, led to the various

increasing markets that will help in the addition of other aircraft to the demand for competition.

The Boeing 737 has had the results in that it places these aircraft model into a global

industrial airline industry in the full-year period of 2019 (Fischer, 2019). That it lost its revenue

because the Boeing 737 stranded around 4.1million dollars inclusive of other three airlines that

have their aircraft model at a value of about 600million US dollars. Due to difference amongst

individual aircraft airlines, it was found that many seats were lost regarding fatal crashes that

happened Indonesia and in Ethiopian countries crashes that did happen before the take-offs of the

aircrafts

According to Forbes news, on December 17, 2019, Boeing Inc announced that it would

temporarily halt the production of 737 Max from January 2020. The move comes after a series of

plane crashes associated with this model (Asquith, 2019). At the end of 2019, the company

recorded the highest decline in its deliveries of is plane for the decade. In 2019, Boeing only

received 54 orders for the aircraft compared to 2018, where the company received over 800
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orders. Besides, the deliveries fell by 53% to 380 planes, the lowest recorded deliveries since the

financial crisis in 2008. The grounding of 734 max means it is impossible for Boeing Inc. to

deliver the planes to the customer since it lost the consumer confidence.

Boeing 737 Max crisis that resulted in more than 346 people died in two plane crashes

caused the company to record a 13% decline in profit in 2019 compared to 2018. In 2019, the

revenue fell from $101.127 billion in 2018 to $76.559 billion, representing a 24.29% decrease; as

a result, the earnings per share decreased from $18.5 to -$1.12 per share in 2019. The operating

cash flows declined from $15.322 billion to -$2,446 billion. As a result, the stock price decreased

from $400.01 on March 11, 2019, to $325.76 on December 31, 2019 ("Boeing Annual Report

2019).

To mitigate the financial crisis, the company October 4, 2019, announced the move to

stop the buyback shares from covering the cost of 737 Max Crisis. The company in its Q4

statement indicates that it was unable to receive payment for new jets or deliver any aircraft. The

buy backed was aimed to reduce the company liability that was growing by the day. Before the

crisis, the company returned most of the free cash flow to the shareholder through dividends or

share buybacks.
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References

Asquith, J. (2019, December 17). Boeing Completely Suspends 737 MAX Production. Forbes.

Boeing Annual Report 2019. (2020).

SEC.gov. https://www.sec.gov/Archives/edgar/data/12927/000001292718000007/a2017

12dec3110k.htm
Johnston, P., & Harris, R. (2019). The Boeing 737 MAX saga: lessons for software

organizations. Software Quality Professional, 21(3), 4-12.

Cruz, B. S., & de Oliveira Dias, M. (2020). CRASHED BOEING 737-MAX: FATALITIES OR

MALPRACTICE?. GSJ, 8(1).

de Oliveira Dias, M., Andre Teles, M. B. A., & Lopes, R. D. O. A. (2020). COULD BOEING

737 MAX CRASHES BE AVOIDED? FACTORS THAT UNDERMINED PROJECT

SAFETY. GSJ, 8(4).

Fischer, D. (2019). Was Boeing’s Compensation Committee Sufficiently Independent in Judging

the Business Risk of the 737 Max?. Available at SSRN 3370066.