ALBAWABA - Boeing, the aircraft manufacturing company, has faced obstacles and hardships throughout its century-long history. Nevertheless, it has consistently rebounded from setbacks. Today, a new challenge stands in the path of this aviation giant. Let's take a look at the challenges of the past and the latest hurdle facing Boeing.
Yesterday's Challenges:
Boeing capitalized on the growing demand for military aircraft during World War I and thrived in its aftermath. However, during President Roosevelt's administration, measures were taken to dismantle what was perceived as an emerging monopoly in the aviation sector.
In World War II, the United States bolstered its airpower significantly, leading to a surge in Boeing's sales in 1944. But shortly after achieving victory in 1945, the government began canceling military aircraft contracts en masse, resulting in the loss of thousands of Boeing employees' jobs. Nevertheless, the company rebounded to become a global leader in the production of jet aircraft after developing the single-aisle 737 aircraft. Following the September 11, 2001 attacks, air travel declined significantly, leading to a decrease in aircraft orders. In the years that followed, Boeing laid off nearly 30,000 employees, and the company's workforce in Washington decreased to around 54,000 people, with the company's market capitalization also dropping by 14.78 percent.
One of Boeing's most significant crises occurred when the Federal Aviation Administration (FAA) grounded the 787 Dreamliner aircraft in 2013 after two battery failures. Additionally, two Boeing 737 Max medium-range aircraft crashed in Indonesia in October 2018 and in Ethiopia in March 2019. Then, the aviation industry faced a near-total halt due to the COVID-19 pandemic in 2020. However, Boeing managed to recover alongside the airlines after the pandemic.
Boeing Today:
Despite all the challenges Boeing has faced, it capitalized on the recovery period from the pandemic. The company addressed the automatic safety feature issue in the Boeing 737 Max, which had been the subject of investigations. As a result, Boeing's market value today stands at $123 billion, making it one of the most valuable companies in the world.
However, it appears that Boeing is facing a new obstacle. Its stock has fallen after the American aircraft manufacturing company warned of delays in delivering 737 Max aircraft in the near future due to a new issue involving unnecessary holes in the rear structure of some aircraft. Will Boeing overcome this new hurdle, as it has done with challenges in the past?
