Boeing's Crisis Management and Mitigation

Case Study
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Boeing Crisis
Introduction
Boeing had to confront a new reality in March 2019 when the U.S. Federal Aviation Administration (FAA) grounded the entire fleet of 737 Max aircraft in the wake of two fatal crashes in less than five months (FAA, 2020). The grounding of the aircraft, which were introduced in 2017 and quickly became Boeing’s best-selling plane, was a major setback for the company. The Max was a key part of Boeing's strategy to compete with Airbus in Europe, receiving more than 4,700 orders from airlines throughout the globe (Newburger & Josephs, 2019). The entire aviation sector was also severely impacted by the plane's grounding. Thousands of flights had to be canceled throughout the globe because of the grounding of more than 50 airlines. Airlines stand to lose more than $1 billion in revenue as a result of the closure. Boeing is attempting to resolve the concerns that resulted in the 737 Max being grounded. There is a software remedy for the aircraft that has been produced by the manufacturer and is being submitted to the FAA for approval. Additionally, Boeing is embarking on a public relations effort to regain public trust in the 737 Max's safety. An investigation of the circumstances leading up to the grounding of the Boeing 737 Max, its effects, and Boeing's efforts to mitigate them will be the focus of this case study.
Background
Boeing 737 Max
Over the years, aircraft makers have had to develop methods to improve fuel economy. This has been made possible by new designs and technical advancements. In the case of the Boeing 737 MAX, this was the case. This family of Boeing 737s includes the MAX 7, MAX 8 and MAX 9 variants, all of which were introduced by Boeing in 2011 as part of the 737 family. As of June 2017, the MAX 10 is the final 737 to be unveiled; it's the same size as an Airbus A321neo. Instead of developing a new airplane, Boeing opted to upgrade its most successful model, the 737, and the result is the 737 MAX. In order to fulfill the project's deadlines and enhance fuel economy, the 737 aircraft required a variety of technical upgrades (FAA, 2020). First, the engine was moved forward and the nose landing gear was lengthened by eight inches. MCAS (Maneuvering Characteristics Augmentation System) was established as a consequence of this (NTSB, 2020). After the Lion Air Flight 610 and Ethiopian Airlines Flight 302 tragedies in March 2019, this aircraft was grounded in numerous countries across the globe.
What Happened?
Flight 610, a Lion Air 737 MAX 8 headed for Pangkal Pinang, Indonesia, took off on October 29, 2018. The aircraft took off from Jakarta and then started descending soon after takeoff; the cockpit crew did not follow the Boeing recommended procedure to solve the aircraft’s flight control problem (NTSB, 2020). The flight continued to descend, eventually hitting the Java Sea with 189 people on board.
The Second Accident and Grounding of the MAX
Ethiopian Airlines Flight 302 was involved in a second crash on March 10th, 2019. Ethiopia's Boeing 737 MAX 8 took flight from the Ethiopian capital of Addis Ababa, heading for the city of Nairobi. Eight minutes after takeoff, the aircraft was on the ground following a quick descent. The plane's 157 passengers and crew perished (NTSB, 2020). The similarities between the two crashes led to many investigations, which eventually led to a grounding of the 737 MAX.
Lingering questions
Did the airline manufacturer rushed design and production in order to satisfy market and competitive demands, raising the possibility of a flaw being concealed? Could it be that the 737 MAX's flight computer was receiving incorrect data from the aircraft's new MCAS anti-stalling system or its associated Angle of Attack (AOA) sensor?
Findings
The Ethiopian Aircraft Accident Investigation Bureau examined the accident of Ethiopian Airlines with the help of the United States National Transportation Safety Board. According to preliminary investigations, the plane's anti-stall system malfunctioned and caused the disaster (NTSB, 2020). As a result of a fault, the engine may shut down. This device is meant to avoid stalling.
According to Newburger and Josephs (2019), the automatic MCAS system, which was intended to prevent aerodynamic stall but instead sent the aircraft into a potential nose down dive in the current conditions, was the initial probable cause of the 737 Max's inability to be controlled. According to the NTSB's findings, the primary cause of the accident was "confusion" on the correct use of the MCAS (NTSB, 2020). Both the Max 8 and Max 9 aircraft were found to have structural damage to their aft fins, which was likely caused by the on-the-ground engine change and loading during an event similar to that which led to the Lion Air crash involving the same type of aircraft.
Boeing Crisis Management
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