Business Research Project
Activities
Julio Guevara #626700
Emiliano Ollervides Treviño #624687
October 3 / 2023
.DOCX
ACTIVITY 1
Business: Boeing's 737 MAX Safety Crisis
Problem/Issue: Boeing faced a significant safety crisis with its 737 MAX aircraft
following two fatal crashes in 2018 and 2019. The crashes led to a worldwide
grounding of the aircraft, a loss of public trust, and ongoing challenges in resolving
the issues.
Research Question: "Did Boeing's response to the 737 MAX safety crisis
effectively address the root causes and restore public trust in the aircraft and the
company?
Introduction
Boeing, a leading aerospace company, faced a severe safety crisis with its 737 MAX
aircraft following two fatal crashes in 2018 and 2019. The crashes, involving Lion Air
Flight 610 and Ethiopian Airlines Flight 302, resulted in the deaths of 346 people
and had a devastating impact on Boeing's reputation and the aviation industry as a
whole. In the aftermath of the crashes, the 737 MAX was grounded worldwide, and
Boeing faced intense scrutiny from regulators, the media, and the public.
This paper investigates Boeing's response to the 737 MAX safety crisis, examining
whether the company's actions effectively addressed the root causes of the crashes
and restored public trust in the aircraft and the company. The paper utilizes a
qualitative research approach, analyzing various sources of information, including
news articles, regulatory documents, and academic research. The findings of the
paper suggest that Boeing's response was initially inadequate but improved over
time. However, the company's reputation and public trust were significantly
damaged, and the full impact of the crisis is still being felt.
Methodology
This paper employs a qualitative research approach to investigate Boeing's
response to the 737 MAX safety crisis. Qualitative research involves collecting and
analyzing non-numerical data to understand complex social phenomena. In this
case, the research focuses on understanding Boeing's decisions, actions, and
communication strategies in response to the crisis.
The primary data sources for this paper include:
News articles: News articles provide a rich source of information on the events
surrounding the 737 MAX crisis, including Boeing's actions and public statements.
Regulatory documents: Regulatory documents, such as those issued by the Federal
Aviation Administration (FAA), provide insights into the technical issues that
contributed to the crashes and the regulatory oversight process.
Academic research: Academic research provides a more in-depth analysis of the
crisis, including its causes, consequences, and potential lessons learned.
Findings
Supporting document 1: "The Boeing 737 MAX Safety Crisis: A Timeline" by The
New York Times
This article provides a comprehensive overview of the 737 MAX safety crisis, from
the initial crashes to Boeing's eventual grounding of the aircraft. It highlights the key
events and decisions that led to the crisis, including the FAA's approval of the
aircraft's design and Boeing's failure to adequately communicate the risks
associated with the new flight control system.
Supporting document 2: "Boeing's Fatal Flaw" by The New York Times
This article delves into the design flaws of the 737 MAX's Maneuvering
Characteristics Augmentation System (MCAS), which was a primary factor in both
crashes. It describes how MCAS was designed to counteract the tendency of the
aircraft to stall, but it could also cause the aircraft to nosedive uncontrollably if it
received erroneous sensor data.
Supporting document 3: "Boeing's 737 MAX Grounding: A Year Later" by The
Seattle Times
This article examines the impact of the 737 MAX grounding on Boeing and the
aviation industry a year after the crisis began. It highlights the financial losses
incurred by Boeing, the reputational damage suffered by the company, and the
ongoing challenges in restoring public trust in the aircraft.
Analysis and Discussion
Boeing's response to the 737 MAX safety crisis was initially inadequate but
improved over time. In the immediate aftermath of the crashes, Boeing downplayed
the risks associated with the aircraft and resisted calls for grounding. However, as
the evidence of MCAS's role in the crashes grew, Boeing was forced to
acknowledge the problem and take action.
The company eventually grounded the aircraft, redesigned MCAS, and implemented
additional safety measures. However, the damage to Boeing's reputation was
significant, and the company continues to face legal challenges and regulatory
scrutiny. The full impact of the crisis on Boeing's long-term success remains to be
seen.
Conclusion
Boeing's response to the 737 MAX safety crisis was a significant failure of corporate
leadership and risk management. The company's initial resistance to addressing the
risks associated with MCAS was a major factor in the two fatal crashes. However,
Boeing did eventually take corrective action, and the 737 MAX has been cleared to
fly again. The company is still recovering from the crisis, and it remains to be seen
whether it can regain the public's trust.
Sources of Information:
737 MAX. (2023). Boeing.com. https://www.boeing.com/commercial/737max/
FAA Updates on Boeing 737 MAX | Federal Aviation Administration. (2021). Faa.gov.
https://www.faa.gov/newsroom/faa-updates-boeing-737-max-0?newsId=93206
Johnson, E. M. (2020, November 18). TIMELINE-Boeing’s 737 MAX crisis. U.S.
https://www.reuters.com/article/boeing-737max-timeline-idUSL1N2I417A
Bailey, J. (2023, April 11). The Boeing 737 MAX: The Ultimate Guide. Simple Flying;
Simple Flying. https://simpleflying.com/boeing-737-max-ultimate-guide/#:~:text=The
%20ultimate%20Boeing%20737%20MAX,close%20look%20at%20the%20plane.
Paula, J. (2021). Crisis history and hindsight: A stakeholder perspective on the case of
Boeing 737-Max - Wouter Jong, Paula Broekman, 2021. Public Relations Inquiry.
https://journals.sagepub.com/doi/10.1177/2046147X211001350#:~:text=Boeing
%20showed%20compassion%20after%20both,assistance%20to%20the
%20companies%20involved.
What Really Brought Down the Boeing 737 Max? (Published 2019). (2023). The New
York Times. https://www.nytimes.com/2019/09/18/magazine/boeing-737-max-
crashes.html
How “Boeing’s Fatal Flaw” Grounded the 737 Max and Exposed Failed Oversight
(Published 2021). (2023). The New York Times.
https://www.nytimes.com/2021/09/13/NYT-Presents/boeing-737-max-crash-
frontline.html
Gates, D. (2020, November 18). Q&A: What led to Boeing’s 737 MAX crisis. The Seattle
Times. https://www.seattletimes.com/business/boeing-aerospace/what-led-to-
boeings-737-max-crisis-a-qa/
