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Boeing: how not to run a national champion

The aircraft maker needs a deeper cultural overhaul, starting at the top
00:00

{"text":[[{"start":9.1,"text":"“If it’s not Boeing, I’m not going,” was long a cherished slogan of the aircraft giant. "},{"start":14.279,"text":"Not everyone agrees today: French finance minister Bruno Le Maire said this week that he preferred “flying in Airbus over Boeing — my family too, they care about me”. "},{"start":23.171999999999997,"text":"The quip probably reflected often bitter transatlantic rivalries over plane-making. "},{"start":27.714,"text":"But five years after twin Boeing 737 Max 8 plane crashes killed 346 people, and two months after a door panel on another model blew out mid-flight, the company’s woes seem to be deepening. "},{"start":39.357,"text":"As the Southwest Airlines CEO has put it, Boeing needs to “get the issues understood and get the issues fixed”. "}],[{"start":46.04,"text":"An initial probe into January’s door plug blowout concluded four bolts meant to attach it had not been fitted. "},{"start":52.044,"text":"In the months before, Boeing had had issues with misdrilled bulkhead holes and a missing rudder control nut. "},{"start":57.599,"text":"The mishaps keep coming. "},{"start":59.292,"text":"TheUS regulator, the Federal Aviation Administration warned last week of improperly installed wiring bundles on 737 Max planes. "},{"start":67.609,"text":"And 50 passengers were hurt when a 787 flying from Australia to New Zealand suddenly plunged, after which Boeing told airlines to inspect switches on 787 pilots’ seats. "}],[{"start":79,"text":"The FAA said an audit of Boeing and its key supplier Spirit AeroSystems had found multiple alleged failures to comply with manufacturing quality requirements; it has given Boeing bosses 90 days to draw up a plan to fix quality issues. "},{"start":91.779,"text":"An expert panel found a “disconnect” between top managers and staff and “inadequate and confusing” safety processes. "}],[{"start":98.74,"text":"Resultant delays in Boeing deliveries are affecting airlines and passengers. "},{"start":103.14399999999999,"text":"Half a dozen US and European carriers have warned that their plans to increase capacity are in doubt. "},{"start":108.524,"text":"Airline trust in Boeing management and its CEO Dave Calhoun is being sorely tested. "}],[{"start":114.35,"text":"The roots of the problems are well catalogued. "},{"start":117.142,"text":"A shift in culture after Boeing bought McDonnell Douglas in 1997 put financial returns ahead of engineering prowess. "},{"start":123.77199999999999,"text":"The company relied more on suppliers to build parts, and spun off some operations into separate businesses — such as Spirit — as it focused on final assembly. "},{"start":132.452,"text":"The FAA delegated too much 737 Max safety certification work to Boeing itself. "},{"start":138.16899999999998,"text":"Lina Khan, Federal Trade Commission chair, presents Boeing as a cautionary tale of the pitfalls of “national champions”; turning it into a too-big-to-fail domestic monopoly in commercial aircraft lessened the pressure for innovation and excellence. "}],[{"start":151.49,"text":"Airbus is a European “champion” too, assembled from mergers and aided by state support, and uses a network of outsourced suppliers that also includes Spirit. "},{"start":160.269,"text":"Yet, while it has made its own past strategic mis-steps, Airbus has avoided the quality and safety traps Boeing has fallen into. "},{"start":167.424,"text":"In response, the US company has not stood still. "},{"start":170.717,"text":"It created a board-level aerospace safety committee and a chief safety officer role. "},{"start":175.334,"text":"It has centralised safety reporting functions; engineers now report to the chief engineer, who reports directly to Calhoun. "}],[{"start":182.97,"text":"But recent months have made clear how much remains to be done. "},{"start":186.499,"text":"To regain its manufacturing verve, Boeing should bring Spirit back in-house (talks are under way), improve its approach to quality assurance and rebuild relations with squeezed suppliers. "},{"start":196.529,"text":"Above all, it needs a wider cultural reboot, starting with an overhaul of top management. "}],[{"start":202.56,"text":"Calhoun, a former GE executive, stabilised the company and repaired relations with regulators after the 737 Max 8 crashes. "},{"start":211.177,"text":"But as a Boeing director since 2009, he was on the board when the crashes happened and — though Covid intervened — has had four years at the helm to fix the problems. "},{"start":220.007,"text":"His time to demonstrate that he can do so is fast running out. "}],[{"start":223.41,"text":""}]],"url":"https://creatives.ftacademy.cn/album/147400-1711077764.mp3"}

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