Being labeled as the "second worst student in the US stock market," Boeing is facing quite a bit of trouble.

In less than three months into 2024, Boeing has been repeatedly embroiled in public opinion due to frequent safety incidents, leading the public to even question whether Boeing has abandoned its pursuit of "safety first."

According to the latest media reports, John Barnett, a former Boeing employee who had previously exposed manufacturing issues at Boeing, was found dead in his truck parked at a hotel on March 9th (Saturday). Media cited a forensic report stating that the 62-year-old Barnett died from an apparent "self-inflicted wound," and the police are investigating the matter.

Meanwhile, a series of investigations and accountability measures have been launched. For Boeing, addressing quality control management and safety production issues is urgent, but the bigger challenge lies in whether the market's confidence in the company can be restored.

The delay in the FAA's approval for the 737 MAX series has disrupted Boeing's production and delivery plans. United Airlines, a loyal customer of Boeing, has also turned its attention to Airbus, which may impact Boeing's performance this year and in the long run. Boeing's stock price has continued to plummet significantly, with a drop of nearly 27% year-to-date, making it the second worst-performing company in the S&P 500 index, second only to Tesla.

Whistleblower on Boeing Safety Issues Found Dead in Truck on Day of Inquiry Due to "Self-Inflicted" Wound

On March 12th, media reported that John Barnett, a former Boeing employee known for raising concerns about Boeing's production standards, was found dead in the United States.

Barnett was scheduled for further inquiry on March 9th but did not show up. Personnel went to the hotel where he was staying and found him dead in his truck in the hotel parking lot. According to a forensic report cited by the media, Barnett died from an apparent "self-inflicted wound," and the police are investigating the matter.

Barnett worked at Boeing for 32 years until his retirement in 2017 due to health reasons. Until his passing, Barnett had been providing evidence for lawsuits against Boeing. Boeing expressed sadness over Barnett's death.

Since 2010, Barnett had been working as a quality manager at the North Charleston factory, which is responsible for producing Boeing 787 aircraft. In 2019, Barnett revealed to the media that overworked employees deliberately installed non-standard parts on the production line. He said: After working in South Carolina for a short period, concerns arose about rushing the production of new aircraft at Boeing, fearing that hasty assembly processes could compromise safety.

Boeing denied this, stating that employees did not follow the factory's parts tracking procedures, leading to missing defective parts. In some cases, to prevent delays on the production line, unqualified parts were even taken from the scrap bin and installed on the aircraft being manufactured.

It was also claimed that tests on the emergency oxygen system to be installed on the Boeing 787 showed a failure rate of 25%. This means that in case of an emergency, one out of every four breathing masks may fail to deploy. Barnett said he had warned management about the issues he was concerned about, but no action was taken.

In 2017, the U.S. regulatory agency, the Federal Aviation Administration (FAA), confirmed some of Barnett's concerns. After retiring, Barnett initiated long-term legal proceedings against Boeing. He accused Boeing of defaming his character and obstructing his career development for pointing out the issues. Boeing denied these accusations.

Before his passing, Barnett was in Charleston for legal interviews related to the case. Last week, he officially testified, underwent questioning by Boeing's lawyers, and then cross-examination by his own lawyer. He was scheduled for further questioning on March 9 but did not show up. Personnel went to his hotel to inquire, only to find Barnett deceased in his truck in the hotel parking lot.

In 2020, internal Boeing communications were reported, with some employees criticizing the Boeing 737 MAX series as being "designed by clowns, supervised by monkeys." Reports also mentioned that to save costs, Boeing only arranged for pilots to use iPads for one hour of 737 MAX flight training instead of investing heavily in flight simulator system training.

Regarding Boeing's series of issues, some media outlets bluntly stated that the company had shifted its focus to financial performance over the past few decades, "sacrificing aircraft safety and quality."

Frequent Boeing Accidents in 2024

In just half a month in January this year, several Boeing-related accidents occurred globally. In February, Boeing aircraft experienced wing ruptures and control system failures. By March, Boeing's situation did not seem to improve, with five accidents in one week:

• On January 5, an Alaska Airlines Boeing 737 MAX 9 aircraft experienced a cabin door detachment incident.
• On January 13, a Japan Airlines Boeing 737-800 aircraft had a visibly cracked cockpit window. On January 17th, when US Secretary of State Blinken returned to the US from the World Economic Forum in Switzerland, the Boeing 737 he was on experienced an oxygen leak malfunction before takeoff and had to change planes.

On January 18th, a Boeing cargo plane from US Atlas Air experienced engine failure shortly after takeoff from Miami International Airport and had to make an emergency return.

On February 19th, a Boeing 757 passenger plane from United Airlines flying from San Francisco to Boston discovered a "rupture" on one side of the wing during the flight and had to make an emergency landing.

On March 4th, a United Airlines Boeing 737-900 passenger plane took off from Houston and shortly after, the left engine kept spewing fire, forcing the plane to return and make an emergency landing.

On March 7th, a United Airlines Boeing 777-200 passenger plane flying from San Francisco to Japan had a wheel from the left main landing gear fall off after takeoff, leading to an emergency landing at Los Angeles Airport.

On March 8th, a United Airlines Boeing 737 MAX 8 passenger plane skidded off the runway and into the grass next to the runway while taxiing to the gate after landing in Houston. The left main landing gear of the plane was damaged. Fortunately, no passengers or crew were injured.

On March 9th, an Alaska Airlines Boeing 737 MAX 8 passenger plane arrived at Portland Airport with the cargo hold door found open.

On March 11th, a Boeing 787-9 passenger plane flying from Sydney, Australia to Auckland, New Zealand experienced technical issues, resulting in a rapid descent during the flight, causing a "violent nosedive" for a few seconds, leading to at least 50 injuries as passengers hit the cabin ceiling.

Boeing is currently under strict scrutiny by the Federal Aviation Administration (FAA) due to multiple accidents. The MAX plane door incident at the beginning of January also triggered a criminal investigation by the Department of Justice. The National Transportation Safety Board (NTSB) stated that Boeing has not provided records from the assembly line to prove what measures were taken during the door replacement on Alaska Airlines' plane (possibly the cause of the incident) to ensure safety and quality. Boeing claimed that they did not actually keep these records.

The FAA stated that Boeing's safety and quality issues go beyond the lack of document provision. When reviewing Boeing's production workflow and standards, FAA Administrator Mike Whitaker stated on Monday that regulatory agencies found "significant" issues in important aspects of Boeing's manufacturing and assembly lines:

"The problems Boeing faces in production and quality control are not just about missing document records, but also involve the sequence of processes, the use of tools, and tracking management." Although these issues may seem minor, they are crucial for aircraft manufacturers. They reflect whether a company's production management is strict, meticulous, whether it has a sound quality control system, and a rigorous operational culture.

At the same time, a spot check by the FAA on Boeing employees showed that the overall average score of six company engineers' understanding of their quality control processes was 58%.

Boeing has stated that they are addressing several issues highlighted by the FAA and will submit solutions by the end of May to rectify the issues in their production processes. Stan Deal, President and CEO of Boeing Commercial Airplanes, mentioned in a letter to employees that the company will continue to implement reforms, develop a comprehensive action plan, and strengthen safety and quality management:

Employees must strictly adhere to every step of our manufacturing procedures and processes and remain vigilant for potential safety hazards.

The Gap Widens Between Airbus and Boeing

According to media reports, considering these factors, the U.S. government has delayed the airworthiness certification process for the 737 MAX 7 and 737 MAX 10 aircraft, with the certification for the 737 MAX 10 possibly postponed until 2025.

United Airlines has suspended its Boeing 737Max10 orders due to the prolonged lack of operational approval and has confirmed discussions with Boeing's main competitor Airbus regarding the purchase of A321 aircraft.

As the launch customer for the MAX 10, United Airlines had previously ordered 277 MAX 10 aircraft from Boeing and signed an agreement to potentially purchase an additional 200 MAX 10 aircraft. It is expected that a considerable portion of United Airlines' orders may shift to the A321.

Some analysts point out that this will provide Airbus with a significant opportunity to seize market share from its main competitor Boeing. Boeing's predicament may give Airbus a chance to dominate the aviation sector, as of 2024, Boeing has delivered a total of 54 aircraft, while Airbus has significantly outpaced with 79 aircraft deliveries.