Publications
Publications
- January 2021
- HBS Case Collection
What Went Wrong with Boeing’s 737 Max? (B)
By: William W. George and Amram Migdal
Abstract
Following the March 10, 2019, crash of Ethiopian Airlines flight 302, en route to Nairobi, Kenya and the October 29, 2018, downing of Lion Air flight 610 as it took off from Jakarta, Indonesia, Boeing’s 737 Max jet, the model flown in both instances, was grounded by the Federal Aviation Administration and regulators all over the world. During its 20-month grounding, airline customers cancelled or put in question more than 1,000 orders for the Max. By the time regulators allowed the 737 Max to fly again, in November 2020, Boeing faced challenges due to the negative effects of the COVID-19 pandemic on air travel in 2020 and the negative medium and long-term outlook for the airplane manufacturing industry. This case examines the challenges faced by Boeing and CEO David Calhoun as the company sought to recover from the financial consequences of the grounding and the pandemic and to re-gain the trust of passengers, airlines, regulators, investors, employees, and the media.
Keywords
Ethics; Values and Beliefs; Governance; Corporate Accountability; Governance Controls; Governing Rules, Regulations, and Reforms; Leadership; Management; Business or Company Management; Crisis Management; Risk Management; Organizations; Organizational Culture; Problems and Challenges; Risk and Uncertainty; Safety; Failure; Transportation; Air Transportation; Aerospace Industry; Air Transportation Industry; North America; United States
Citation
George, William W., and Amram Migdal. "What Went Wrong with Boeing’s 737 Max? (B)." Harvard Business School Supplement 321-001, January 2021.