Whistleblower’s death throws Boeing from frying pan into the fire
The sudden death of John Barnett, a former Boeing quality manager turned whistleblower, casts a long shadow over the aircraft manufacturer's safety culture
John Barnett, a former Boeing Staffer, has been found dead in the US, with primary investigations suggesting a "self-inflicted" wound as the reason behind his death.
Notably, Barnett was a long-term employee for Boeing, having spent 32 years in the company. However, he raised concerns about potential safety issues with the 787 Dreamliner in 2017.
His skepticism about Boeing's safety standards grew over the years, especially after a series of high-profile malfunctions on Boeing planes. He alleged that the company prioritised profits over safety, leading to a "culture of concealment."
Keep updated, follow The Business Standard's Google news channel
Interestingly, in December last year, Boeing offered to sell two aircraft to the Biman Bangladesh Airlines. Biman recently finalised a deal with Boeing for purchasing two brand new Dreamliners, the very aircraft Barnett raised concerns about, at a discounted price.
Barnett's death, while ruled a suicide, sparked questions about the pressure whistleblowers face within corporations. His case highlighted the potential consequences of speaking up against powerful entities, even over genuine safety concerns.
Boeing's barrage of bad news
Boeing found itself in troubled waters during the first weekend of the year, marked by a portion of an Alaska Airlines 737 Max detaching from the aircraft shortly after takeoff.
This incident prompted a temporary nationwide grounding of specific 737 Max jets, followed by congressional hearings, as well as production and delivery delays, and triggered numerous federal investigations, including a criminal inquiry.
Fast forward to last Monday, a 787 Dreamliner experienced a sudden mid-flight descent, resulting in injuries to numerous passengers.
The following day, an Federal Aviation Administration (FAA) audit of Boeing's 737 Max production revealed "dozens of issues," as the company failed 33 out of 89 product audit tests.
Consequently, Boeing's (BA) stock, which had already declined by 3% after the alarming LATAM flight incident on Monday, dropped another 4.5% on Tuesday. This positioned it as the second-worst performer in the S&P 500, trailing only Tesla.
Considering the legal battles, potential fines, and business losses incurred, Boeing faces the risk of losing billions more dollars. With the cumulative impact of these setbacks since the year's onset, the demise of Barnett represents an existential crisis for Boeing.
At least 50 people were injured on Monday by what officials described as a "strong movement" on a Chilean plane travelling from Sydney to Auckland, New Zealand.
Despite the pilot's successful recovery and safe landing, the cause of the dramatic descent of the LATAM flight from Australia to New Zealand remains unclear. LATAM referred to it as a "technical event," while Boeing stated it is actively seeking more information. Nonetheless, this development adds to the cascade of challenges facing Boeing's management and the public's perception.
After the Alaska Airlines 737 Max incident, a preliminary federal investigation indicated that Boeing likely neglected to install bolts in the door plug, designed to prevent such incidents.
Thus, Boeing's stock plummeted by a quarter of its value, resulting in a market valuation loss exceeding $40 billion.
Moreover, the repercussions extended to safety concerns, with reports of flight control issues on a United Airlines 737 Max and flagged safety issues related to de-icing equipment on both 737 Max and 787 Dreamliner models.
Despite these concerns, the FAA permitted the continued operation of these planes, asserting that the issues didn't present immediate safety risks.
Adding to Boeing's woes, the NTSB (National Transportation Safety Board) revealed last week that Boeing had failed to provide records documenting assembly line steps for the Alaska Airlines jet's door plug replacement, citing their nonexistence.
Boeing's troubles were highlighted further by FAA Administrator Mike Whitaker, who identified systemic issues in Boeing's production workflow and standards. These issues ranged from paperwork deficiencies to fundamental aspects like tool management, all critical in ensuring manufacturing quality.
Boeing has pledged to address these concerns, with the FAA mandating a plan to rectify production problems by late May. However, investor confidence remains shaken, as evidenced by Boeing's continued decline in stock price.
Yet, the significance of Boeing's tumultuous start to 2024 transcends stock market performance. The company's reputation, already tarnished, faces an uphill battle in restoring trust among airlines, regulators, and passengers amidst each new incident and negative publicity.
In 2019, following the tragic crashes of Ethiopian Airlines' Boeing 737 MAX 8 and Lion Air's Boeing 737 MAX, Barnett publicly voiced concerns. He alleged that workers at a Boeing factory deliberately fitted faulty parts to meet production deadlines. Additionally, he claimed that oxygen masks on the 787 Dreamliner had a 1-in-4 chance of failing during emergencies.
Barnett reported these safety breaches to Boeing managers and the FAA. However, he asserted that no action was taken to address the issues. His allegations put Boeing under intense scrutiny.
Other recent Boeing incidents
Recent incidents involving Boeing aircraft have drawn significant attention. Last week, a series of events unfolded in the US:
On 4 March, a Boeing 737 was compelled to conduct an emergency landing in Houston, Texas, shortly after takeoff due to an engine fire. United Airlines reported that the engine had ingested plastic bubble wrap from the airfield before departure.
In Portland, Oregon, on Wednesday, a Boeing 737-800 was forced to make an emergency landing due to cabin fumes.
The following day, after departing from San Francisco, a tire detached from a Boeing 777-200, damaging a car. The aircraft, originally bound for Japan, was redirected to Los Angeles, where it landed safely.
Finally, on Friday, a Boeing 737 MAX veered off the runway in Houston and became stuck in the grass.
Boeing, a major player in the commercial aircraft market alongside Airbus, has faced intense scrutiny over its safety track record, particularly following two fatal crashes involving the Boeing 737 MAX in 2018 and 2019.
These crashes resulted in worldwide grounding of the jets for nearly two years after incidents in Indonesia and Ethiopia claimed 189 and 157 lives, respectively.
The investigations into these crashes revealed flaws in the automated flight control software, which led to erroneous activation. Subsequent improvements were made to the software, and the Boeing 737 MAX fleet underwent revisions and re-certification.
While the crashes in 2018 and 2019 were attributed to design flaws in the flight control system, the January Alaska Airlines incident was caused by a manufacturing defect involving loose hardware on the aircraft.
Judging by Boeing's long list of troubles, it appears their woes are not going to come to an end anytime soon.
