NEW YORK: The aviation industry appears to finally be past the worst of the coronavirus downturn, but Boeing’s to-do list remains extensive following a messy start to 2021.
The problems this year include electrical issues with the 737 MAX jet, fuselage troubles on the 787 and yet another delay in the timeframe for the 777X.
The myriad challenges reflect the changed regulatory climate facing Boeing in the wake of a pair of 737 MAX crashes in 2018 and 2019 that claimed 346 lives and led to a 20-month grounding of the aircraft.
“Unfortunately for Boeing right now, the added scrutiny is justified,” said Ken Herbert, an aviation analyst at Canaccord Genuity.
Chief Executive Dave Calhoun on Wednesday will update investors on its latest set of challenges when the company reports second-quarter results.
He will likely discuss the prospects for the 787 Dreamliner following Boeing’s move earlier this month to cut production after identifying another issue with the aircraft.
In May, the Federal Aviation Administration (FAA) formally notified Boeing that the 777X would need more than two years of additional testing and analysis before it could be certified, saying the jet was “not yet ready” to advance to the next stage of evaluation.
In April, Boeing notified 16 airlines flying its 737 MAX planes of an electrical issue, leading to the immediate grounding of more than 100 jets. Carriers resumed service on the jets in May after regulators approved Boeing’s proposed fix.
Boeing has also pushed back the timeframe for new deliveries of presidential plane Air Force Once and experienced numerous setbacks on the KC46 Air Force tanker.
Boeing’s efforts to get back on track have been complicated by disruptions to supply chains and personnel during the pandemic that have weighed on the broader economy.
The company’s decision to consolidate 787 production to South Carolina and shift operations from Washington state has also led to disruption.
But experts say a good portion of the problems stem from the aftermath of the MAX crashes, including a withering September 2020 congressional report that blasted Boeing as overly focused on profit to the detriment of engineering.
The report said Boeing suffered from a “culture of concealment” from regulators at the FAA, who themselves practiced “grossly insufficient oversight” of the company. — AFP
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