Thus far, 2024 has not gone well for the world’s second-largest airplane manufacturer Boeing. The year started with a terrible accident on January 5th when an Alaska Airlines flight 737 taking off from Portland Oregon lost its rear plug door. Then, from January to March several major events happened to the aerospace company. Just a few days after the door was blown off the 737, Alaska Airlines and United Airlines reported excessive damage to other aircraft. Then Boeing was hit with a lawsuit resulting in reports finding there were missing bolts with Boeing's President and CEO responding with; “We are implementing a comprehensive plan to strengthen quality and the confidence of our stakeholders,”(full response here).
Boeing’s situation has now changed from mechanical worries to Strikes and Union problems. On Friday, September 13th, members of the International Association of Machinists voted to walk out in protest to draw attention to the need for a higher wage.
All of these events have greatly impacted the company both monetarily and tarnished their brand image. After the door was blown off the Alaska Airlines flight, Boeing paid the airline company $160m for damages sustained. As for the strike, Boeing could be losing up to $50m a day after production stops. This could cause lasting problems that Boeing must endure as union members say they are prepared to stick out the strike as long as they need to. These problems also are affecting the company’s stock price. The price of Boeing stock has been decreasing for the duration of 2024 with significant losses coming right after issues occurred. For example, following the January 5th incident in just 10 days, the stock price dropped nearly $50 per share from $249.00 to $200.52.
All of these controversies have caused considerable complications to arise for Boeing. How will they recover in the final months of the year? Will Boeing bounce back or will the aerospace giant lose traction in the market?
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