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Boeing’s turmoil clouds future of top US manufacturer

The 787 programme suffered a major blow when all Dreamliners were grounded worldwide for nearly three weeks due to issues with their lithium-ion batteries.

News Arena Network - Washington D.C. - UPDATED: June 12, 2025, 11:24 PM - 2 min read

Remains of the Air India plane that crashed moments after taking off from the Ahmedabad airport, lies on a building in Ahmedabad, Thursday.


Boeing, once a symbol of American engineering excellence, has experienced a tumultuous period in recent years, marked by fatal crashes, quality control issues, leadership changes, and legal consequences. The company’s current troubles can be traced back to December 2009, when its much-anticipated 787 Dreamliner made its first flight from Paine Field in Everett, Washington. The aircraft, designed with advanced materials and improved fuel efficiency, was seen as a significant innovation.


However, in January 2013, the 787 programme suffered a major blow when all Dreamliners were grounded worldwide for nearly three weeks due to issues with their lithium-ion batteries. The batteries caused a fire in one aircraft and smoke in another, raising serious concerns about the aircraft’s safety systems.

Damage at a building following the Air India plane crash, in Ahmedabad, Thursday.

 


In August 2015, Boeing rolled out the first 737 Max, and within a year, the aircraft began undergoing flight tests. What followed would become one of the most damaging periods in the company’s history. On October 29, 2018, Lion Air Flight 610, a Boeing 737 Max 8, crashed into the Java Sea shortly after taking off from Jakarta, Indonesia, killing all 189 people on board. The crash brought attention to a newly introduced flight-control system called MCAS (Maneuvering Characteristics Augmentation System), which investigators later revealed had repeatedly forced the nose of the plane downward. Crucially, Boeing had not disclosed the existence of MCAS to pilots or airlines, leading to global criticism over transparency and training.


Despite the crash, investor confidence remained high, and on March 1, 2019, Boeing shares reached a record high of $430.35 as orders for commercial jets continued to surge. Just days later, however, on March 10, 2019, Ethiopian Airlines Flight 302, another 737 Max 8, crashed shortly after takeoff from Addis Ababa, killing all 157 people onboard. The back-to-back disasters led regulators around the world, including the U.S. Federal Aviation Administration, to ground all 737 Max aircraft within days, marking an unprecedented crisis for Boeing.

Also Read: Air India, DGCA issue statements on flight captain & crew


By December 23, 2019, amid rising criticism over the company’s handling of the Max crisis and concerns that he pressured regulators to lift the grounding prematurely, Boeing fired CEO Dennis Muilenburg. The leadership shake-up was intended to reset relations with regulators and restore public trust. The legal consequences escalated further in January 2021, when the U.S. Department of Justice charged Boeing with fraud for misleading regulators about the 737 Max. The company avoided prosecution by agreeing to a $2.5 billion settlement under a deferred prosecution agreement.


In January 2024, Boeing’s problems resurfaced when a panel covering an unused emergency exit blew off a 737 Max 9 during an Alaska Airlines flight. The pilots landed safely, but the incident raised new alarms about quality control and aircraft integrity. The scrutiny intensified in February 2024 when a panel of independent experts, assembled after the fatal crashes, concluded that Boeing’s internal safety culture still fell short, despite the company’s reform efforts.

Also Read: London-bound Air India flight crashes after takeoff: What we know


On March 11, 2024, a LATAM Airlines Boeing 787-9 Dreamliner operating a flight between Australia and New Zealand suddenly plunged mid-air, injuring 50 people. Boeing later instructed airlines to inspect cockpit seat switches, after a report suggested that unintentional movement of a pilot’s seat likely caused the incident.


Shortly after, on March 25, 2024, Boeing announced that CEO Dave Calhoun, who had replaced Muilenburg, would step down by the end of the year as part of a broader leadership overhaul. A major development followed on July 7, 2024, when Boeing agreed to plead guilty to a charge of conspiracy to defraud the U.S. government for misleading regulators who approved the Max’s pilot training requirements. The plea deal marked a critical legal admission from the company.


On July 31, 2024, Boeing appointed Kelly Ortberg as its new CEO. A trained engineer and former head of aerospace supplier Rockwell Collins, Ortberg’s selection was widely seen as an effort to restore Boeing’s technical credibility and engineering-first culture. But operational challenges remained. On September 13, 2024, around 33,000 Boeing factory workers launched the company’s first strike in 16 years, halting production for nearly two months and further straining the manufacturer’s output.


Finally, on May 23, 2025, Boeing reached another settlement with the US Justice Department, this time avoiding criminal prosecution over the original allegations of misleading regulators prior to the Max crashes. The deal required Boeing to pay or invest more than $1.1 billion, including $445 million in additional compensation to the families of crash victims. The agreement spared Boeing a criminal conviction that could have threatened its eligibility for federal contracts.


Over more than a decade, Boeing’s reputation has been repeatedly battered by crises that revealed deep flaws in its safety practices, quality control, and executive decision-making. While recent steps suggest a course correction, questions remain about whether the company can fully reclaim its status as a trusted leader in global aviation.

Also Read: Amit Shah reviews situation in Ahmedabad, meets survivor

Boeing CEO Kelly Ortberg speaks with Air India chairman

Boeing President and CEO Kelly Ortberg on Thursday expressed deep sorrow over the crash of Air India Flight 171 and confirmed that he has spoken with Air India Chairman N Chandrasekaran in the aftermath of the tragedy. The aircraft crashed shortly after takeoff from Ahmedabad’s Sardar Vallabhbhai Patel International Airport, resulting in one of India’s deadliest aviation disasters.


“Our deepest condolences go out to the loved ones of the passengers and crew on board Air India Flight 171, as well as everyone affected in Ahmedabad,” Ortberg said in an official statement. He added, “I have spoken with Air India Chairman N Chandrasekaran to offer our full support.”


Ortberg further stated that a Boeing technical team is ready to assist with the ongoing investigation, which is being led by India’s Aircraft Accident Investigation Bureau (AAIB). Boeing also confirmed that it would defer all official updates to the AAIB, in line with United Nations International Civil Aviation Organization (ICAO) protocols.


The London-bound Boeing 787-8 Dreamliner crashed into a medical college complex shortly after takeoff and erupted into flames. The devastating impact is believed to have killed nearly all on board.


According to Air India, the aircraft was carrying 242 people, including 230 passengers and 12 crew members. Among the passengers were 169 Indian nationals, 53 British nationals, seven Portuguese nationals, and one Canadian national.

Also Read: Ahmedabad plane crash: 5 dead at medical students' hostel

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