Boeing’s priority: soar through the skies, not balance the books.

Boeing is facing intense scrutiny after a recent incident in which part of a 737 Max plane fell off mid-flight. The incident highlights the failures in quality control at Boeing, coming just five years after the grounding of the 737 Max following two fatal crashes caused by design flaws. Despite no serious injuries in the latest incident, Boeing CEO Dave Calhoun will face tough questions from investors as the company publishes its annual results. The Federal Aviation Administration has allowed the affected aircraft to fly again with certain conditions but has not permitted Boeing to expand production of the 737 Max until quality control issues are resolved. Industry experts believe Boeing’s recent financial focus has come at the expense of its engineering excellence, and new leaders are needed to rectify this. Boeing is expected to report a loss of around $2bn for 2023, its fifth consecutive year in the red. While the company is unlikely to go out of business, it will need to generate cash to develop a new plane to replace the ageing 737 and compete with Airbus. Failure to address these issues could result in a fallow period for the company with dried-up orders and cashflow, putting Boeing at risk of losing further ground to its European rival.