Boeing’s woes are a perfect example of how nickel-and-diming ends up crushing a company

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The ripple effects of Boeing’s woeful lack of oversight of its downstream third-party contractors continue to batter the aircraft manufacturer’s reputation and share price

It seems a reasonable and rational guideline for running one’s life – and business: If you take care of the small things, the big things will take care of themselves.

Not so for Boeing. On a multimillion-dollar aircraft designed to carry hundreds of passengers, the stakes are higher, and virtually every element, including the small things, matters. The quality and care with which parts are made, installed and repaired have very tight tolerances. And the flying public expects that.

While investors have cooled on Boeing shares in the past two months and poked Boeing executives for answers, there has been a remarkable lack of outrage from shareholders calling for changes to the way the company does business. Complacency, in this case, is complicity. Since the near-catastrophic Alaska Airlines incident, things have gone from bad to worse for Boeing, both in the air and on the ground.

On the ground, several airlines reported this week that their orders for new Boeing aircraft are being delayed by these safety issues. Delta Air Lines said its order for new 737 Max 10s won’t arrive until 2027, two years late. United Airlines faces similar delays and said that without the 277 Max 10 planes it has ordered it will need to rethink its long-term plans.

 

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