Jeffrey Sonnenfeld on Air India Crash: Nightmare for Boeing Leadership

Air India Crash and Boeing's Safety Record

• ✈️ The tragic Air India plane crash is a significant event that raises concerns about Boeing's safety record.
• ⚠️ While the investigation is ongoing, there is uncertainty about any potential culpability involving GE or Boeing.
• 💔 The incident is described as an awful human tragedy for the passengers and crew, and a nightmare for Boeing leadership and shareholders.

Boeing's Turnaround Efforts Under Kelly Orber

• 🎯 CEO Kelly Orber, who previously led Rockwell Collins and was involved with the MCAST system controversy, took charge with a focus on improving the company.
• 🤝 Orber has been credited with lifting morale and settling problems with the unions, navigating a difficult strike.
• 📈 Boeing had been making progress, receiving clearance from the FAA to increase production of 737s to 38 planes per year, with the government even allowing Boeing to bring back its own inspectors.
• 📊 Financial performance was improving, with Q1 losses significantly reduced compared to the previous year.

Aviation as a Trade Bargaining Chip

• 🌍 Aviation is increasingly being used as a bargaining chip in trade talks and efforts to narrow trade deficits.
• 🇺🇸 Boeing is highlighted as a critical global company and a standard-bearer for the US in the aerospace sector.
• 👥 Boeing has a strong board with new members, including Lynn Good of Duke and Bob Bradway of Amgen, indicating a commitment to good governance.

Hope for Boeing's Future

• 🙏 There is hope that this setback is unrelated to Boeing equipment itself, allowing the company to continue its recovery.
• 🛠️ The leadership is perceived as trying to do the right thing and has addressed safety issues, aiming to overcome this challenge.