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Saturday, February 15, 2020

Has Boeing Become An Aviation Pariah?

Pariah, a word denoting something or someone who is looked down upon. Boeing is getting a skittish response in the world of aviation for any of its products not just because of the Max 737 failure but for its trust with customers. Whether or not this is fair remains to be seen! But Boeing has a mountain to climb and it cannot play with all its tools it has because of the corporate culture it has embedded into its thinking. A culture that acts upon so-called stockholder value. A stockholder doesn't know how to build an airplane but Boeing is losing stock value as it managers play to those who must hire gardeners to mow there own lawns let alone set timers on for lawn sprinkler systems.

The world has taken note of the stockholder's inability to move Boeing in the correct direction. Boeing looks to cheapen its product to please its investors and not the passenger and there you have the Max crash problem that Boeing brought upon themselves. Build it cheaper and investors will come. Now you have none ordering Boeing airplanes during 2019. The 777X is struggling as well as the 787 not receiving orders. Interest in Boeing products has bottomed, The Max Crash is the tip of the corporate iceberg. Harvard business school grads make poor airplane builders but they are great at making money on the cheap.

Too many business school grads have turned the world of Boeing customers away from Boeing's product. Those who remain at Boeing and control its culture will drive the airplane into the ground because they are not a culture of flying but of profits. Boeing can make and turn to have greater trust with its potential customers if it returns to building safe and solid airplanes for its customers and by demonstrating that they are a capable airplane company.  They must leave the building of aircraft to its experts and not its bean counters. Yes, bean counters are needed but not in the R&D or production process.

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