Boeing Follow-Up: A New 737 MAX Safety Issue Is Discovered

Summary

  • A new safety issue has been identified by the FAA.
  • Following the FOD (Foreign Object Debris) issue of last week, the latest news is disturbing.
  • It's typical for a new aircraft, automobile, ocean-going vessel, etc., to have minor issues.
  • However, Boeing’s management is not acting responsibly when these occur.

Bill Boeing would be rolling over in his grave.

So would Wong Tsu. The co-founder of the Boeing Company and his very first engineer understood, back in 1916, that you had to do a lot of shakedown flights to get everything right. The best company test pilots do that still today.

The problems with the 737 MAX are less engineering problems than they are a decision to rush a product to market when many of the company’s own engineers warned against it.

I wrote a more detailed article about Boeing (BA), Why I Won't Be Buying Boeing, just under a month ago, detailing the problems Boeing is having in terms of quality control on the defense side of its business and explaining why, at this time, I did not think Boeing was a buy. I figured enough ink already had been spilled on the 737 MAX so I wanted readers to know that the Air Force and some intelligence agencies were beginning to sour on dealing with Boeing as well.

These latest safety issues leave me wondering why any PIC (Pilot in Command) would be comfortable taking Boeing’s word on either the defense aviation or commercial aviation side of the business without extensive – and expensive – additional testing on their own.

I doubt these additional expenses are going to be borne by end users without a fight. Many of the derisive comments I received on that recent article centered around the facts that (1) Boeing has a massive backlog of orders worth tens of billions of dollars, and (2) with Boeing enjoying a duopoly in commercial aviation with Airbus SE (OTCPK:EADSY), where else is an airline going to go?

I answer these two rejoinders with the following:

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Disclaimer: I do not know your personal financial situation, so this is not "personalized" investment advice. I encourage you to do your own due diligence on issues I discuss to see if they ...

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Craig Richards 9 months ago Member's comment

Boeing will certainly recover eventually. I would think this is a buying opportunity for $BA.