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Havish Gupta

Figuring Out • 10m

What's Wrong with Boeing? Why do they keep crashing? So Until 1997, Boeing was an product driven company focused on just building top-quality planes. However in 1997, Boeing bought McDonnell Douglas. The McD CEO, Henry, managed to become Boeing’s CEO, President and a Board Member! Henry outsourced lot of Boeing's R&D and manufacturing to cut costs and build international relations. Though this led to complications and problems. As a result, Boeing had to spend an extra $10B on their 737 project. Additionally, Boeing spent $80B on stock buybacks just to boost EPS while cutting the budget for new aircraft! So They ended up making some changes to their 737 to make 737 Max. They also added a feature called MCAS that adjusted the plane’s nose but didn't trained pilots for it. This feature malfunctioned, causing 2 crashes. Also other errors in Boeing 737 series planes led to other 500+ accidents. Moral: Compromising on R&D would never work out. Do You Agree?

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