Boeing faces fallout from near tragedy on Alaska Airlines flight a year later

In the United States, Boeing faced significant operational challenges that began escalating dramatically in 2024. The troubles were triggered by an incident involving an Alaska Airlines flight on January 5, where a near-tragedy highlighted ongoing safety concerns. Just before the incident, the company was on the brink of potentially turning around a string of financial losses, and it appeared to be gaining Federal Aviation Administration approval for its new 737 Max models, which had been eagerly awaited by airline customers. However, as investigations commenced, it was revealed that the aircraft involved had departed a Boeing factory with missing parts, raising serious questions about the manufacturing oversight. The repercussions of the Alaska Airlines incident were vast, reopening a previously settled prosecution against Boeing regarding safety violations. This led to a new agreement for the company to operate under the oversight of a government-appointed monitor, further complicating its operational independence. Compounding these issues, Boeing also experienced labor disputes, notably with its union members who were still reeling from the loss of a traditional pension plan voted out a decade earlier. This unrest culminated in a nearly two-month strike, which significantly impacted the company’s production capabilities and further damaged its reputation. Boeing's financial situation deteriorated over the months, with the company posting one of its worst financial quarters in years by October 2024. The financial losses soared to $6 billion for the third quarter alone, marking a troubling trend in an already fragile business model. The cumulative losses for the company reached $39.3 billion since the onset of severe issues in 2019, driven primarily by troubles surrounding the 737 Max, which was grounded globally following two fatal accidents that claimed nearly 350 lives. The dismal year for Boeing ended with another tragedy, as a crash of a 15-year-old Boeing jet operated by Jeju Air killed 179 individuals in South Korea on December 29, 2024. Unlike the previous incidents heavily linked to Boeing's design and production issues, the cause of this crash remains under investigation, and analysts speculate that the company may not be held liable. Nevertheless, it marked a dark chapter in a year filled with corporate challenges, and it solidified concerns surrounding safety and accountability within one of the aviation industry’s most influential companies.