Boeing 737 Max Fuselage Issues: A Deeper Look

The extended grounding of certain Boeing 737 Max jetliners has intensified pressure on Boeing and its subcontractor, Spirit AeroSystems, following a fuselage panel blowout incident on an Alaska Airlines plane. Investigators have determined the sequence of events leading to the blowout but are yet to identify the root cause. A critical question revolves around the installation of bolts used to secure the panel, known as a door plug.

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Uncertain Bolt Installation

According to a National Transportation Safety Board (NTSB) investigator, the bolts have not been recovered, hindering the determination of their presence until the door plug undergoes laboratory examination. The situation is further complicated by reports from Alaska Airlines and United Airlines, the two US carriers operating the Max 9, indicating loose bolts and hardware in other panels, suggesting broader quality issues with the door plugs.

Spirit AeroSystems in Focus

Spirit AeroSystems, the subcontractor responsible for installing the door plugs in Max 9 fuselages, has a history of manufacturing problems, highlighted in a US House probe of two fatal crashes involving Boeing 737 Max 8 planes. Former congressman Peter DeFazio, who chaired the investigating committee, emphasized the need to focus on Spirit's role, criticizing Boeing for accepting subpar components due to cost-effectiveness.

Delays and Disruptions

The process of inspecting Max 9s and returning them to service has been slower than anticipated by Alaska and United Airlines. The Federal Aviation Administration (FAA) grounded all Max 9s in the United States for inspection, but Boeing's delayed provision of inspection instructions led to further grounding extensions. The FAA prioritized safety over speed, causing significant disruptions to airline schedules, with United and Alaska canceling hundreds of flights.

NTSB Investigation

NTSB officials provided details about the incident, explaining how the plug on Alaska flight 1282 rolled upward and detached from the jet. The plug is secured by four bolts and 12 connecting points, but the bolts have not yet been recovered, raising questions about their presence during the incident. The investigation will focus on manufacturing, assembly, and quality control processes, potentially increasing pressure on Boeing CEO David Calhoun.

Boeing's Response

Boeing CEO David Calhoun addressed employees at the company's 737 factory in Renton, Washington, acknowledging the mistake and expressing trust in the NTSB and FAA to determine the cause of the incident and ensure future safety. Calhoun emphasized the importance of learning from the situation to prevent similar occurrences.

Safety Concerns and Scrutiny

The incident has raised concerns about Boeing's safety culture and quality control practices. Former Boeing employees and industry experts have pointed to a decline in safety culture after a 1997 merger, leading to a focus on stock price and executive compensation rather than engineering excellence. Spirit AeroSystems' record is also under scrutiny, with a federal securities lawsuit alleging widespread quality failures and falsified reports.

Calls for Action

Sen. Richard Blumenthal called for the NTSB to determine whether additional inspections and maintenance should have been conducted before passenger flights. The FAA's new Administrator, Michael Whitaker, faced questions about the agency's actions to protect air traveler safety. Industry experts suggested that a focus on installation errors could be the best outcome for Boeing, avoiding the need for costly redesign.

Market Impact

Boeing's stock experienced a decline of 1 per cent on Tuesday, following an 8 per cent plunge the previous day. Spirit AeroSystems' stock remained relatively stable on Tuesday but had lost 11 per cent on Monday.