Boeing has faced a tumultuous 2024, with a series of crises and setbacks plaguing the aerospace giant. The year began with a jarring incident on January 5, when an Alaska Airlines Boeing 737 Max 9 lost a door plug mid-flight, causing a side panel to blow out and forcing an emergency landing. This event triggered a temporary grounding of over 170 737 Max 9 planes and sparked investigations by the Justice Department and FBI.
The company has since been embroiled in multiple lawsuits. Passengers from the Alaska Airlines flight filed a class action suit, while shareholders launched their own legal action, alleging that Boeing prioritized profits over safety. Additionally, Boeing offered a plea deal related to two fatal 737 Max crashes from 2018 and 2019, agreeing to pay substantial fines and invest in safety measures.
Boeing’s safety procedures came under intense scrutiny following a Federal Aviation Administration (FAA) audit. The report, published in February, identified 27 areas of concern, including inadequate systems for reporting safety issues and unclear management structures. The FAA continues to monitor Boeing’s progress in addressing these
deficiencies.
The company’s leadership underwent significant changes in March, with CEO Dan Calhoun, commercial airplanes division CEO Stan Deal, and board chair Larry Kellner all announcing their departures. This exodus of executives continued throughout the year, signaling a period of instability at the top levels of the organization.
Boeing’s space division encountered difficulties as well. In June, two NASA astronauts were stranded on the International Space Station after issues arose with Boeing’s CST-100 Starliner spaceship. The situation highlighted Boeing’s lag behind competitor SpaceX in the space race.
Labor disputes added to Boeing’s woes, with thousands of unionized employees initiating a strike in September after contract negotiations broke down. The strike, which is reportedly costing the company $50 million daily, has led to furloughs and pay reductions for executives.
In response to mounting pressures, Boeing announced plans in October to lay off approximately 10% of its 170,000-strong workforce. The company also delayed production of its 777X twin-engine jet and discontinued the 767 cargo plane, further complicating its product lineup.
The 777X program, already five years behind schedule, faced additional setbacks. Production delays, design issues, and the ongoing strike have pushed the plane’s entry into service to 2026, eroding industry confidence and potentially driving customers toward rival Airbus.
The FAA has maintained restrictions on Boeing’s 737 MAX production expansion following the January incident. The agency demands systemic changes and improvements in Boeing’s safety culture before considering any increase in production rates.
Whistleblowers have come forward throughout the year, raising alarms about Boeing’s practices. Engineer Sam Salehpour testified to the Senate about ignored safety concerns and retaliation, while other employees reported issues with parts tracking and manufacturing processes.
As 2024 progresses, Boeing faces the monumental task of addressing these multifaceted challenges. The company must navigate regulatory scrutiny, rebuild public trust, resolve labor disputes, and overcome production hurdles to regain its footing in the aerospace industry. The road ahead remains uncertain, with Boeing’s ability to implement meaningful changes and restore its reputation hanging in the balance.