Boeing 2020

Abstract

In April 2020, David Calhoun, Boeing’s newly appointed CEO, is facing an unprecedented crisis. Boeing’s737 MAX, the latest generation of Boeing’s best selling aircraft was grounded after two catastrophic accidents that resulted in 346 deaths. Details emerged that the MCAS installed on the 737 MAX triggered repeatedly in both accidents causing the aircraft to go into an unrecoverable dive. While the MCAS directly contributed to both accidents, a deeper and more disturbing problem also came to light – Boeing’s corporate culture. In the aftermath, Boeing’s profit oriented and cost cutting culture came to light, Calhoun’s predecessor’s (Dennis Muilenburg) botched handling of the crisis only made matters worse and led Boeing’s board of directors to terminate the services of Muilenburg. Calhoun, an industry veteran, was put into the hot seat and has to contend with anxious airline customers, bereaved family members of victims, a suspicious United States Congress and a deteriorating relationship with the Federal Aviation Administration. Calhoun wants the world to again see Boeing as a transparent, high value company and has vowed to fix Boeing’s culture and do the right things. In his search for answers, Calhoun draws inspiration from past Boeing CEOs such as Bill Allen who led Boeing and the world into the Jet Age and T.Wilson who built on Bill Allen’s legacy. The other more subtle point within the case is the role played by technology and the consequences of failure in highly complex industries such as aviation. Finally the case is also set in the backdrop of the COVID – 19 global pandemic with Calhoun having to deal with the effects of the pandemic on the aviation industry.

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