BAD LUCK PURSUES BOEING

Not a day goes by without a new setback in the media for an aircraft manufactured by Boeing. In fact, everything sometimes takes on an inordinate importance. Soon, all it takes is a scratch on the seat of an aircraft for it to make headlines. Enough is enough. I note, however, that the FAA (Federal Aviation Administration), the American body that oversees civil aviation, recently requested an in-depth investigation into the manufacturer's industrial practices. That's how Boeing has now become the target of all questions about air travel safety.

The case goes back a few years. When Boeing bought the McDonnell Douglas business in 1997, it no longer had any real competitor in American aircraft manufacturing or even in the world except for the European Airbus which was beginning to emerge. The Seattle-based giant then took advantage of this acquisition to move its headquarters to Chicago before bringing it more recently to Arlington, all for tax savings reasons. It must be said that the huge financial groups have got their hands on the capital and they want results at all costs. Thus, between 2015 and 2020, Boeing, which recorded a very large profit of $22 billion, nevertheless returned no less than $61 billion in dividends and share buybacks to its shareholders. And to finance this distribution, the automaker had to borrow $51 billion from banks.

So gradually the big house lost its fundamentals, which were to manufacture planes of unequalled safety and with which there was no question of compromise, to transform itself into a machine for distributing money to shareholders greedy for cash to pay their principals in turn. For example, Boeing's main shareholder, "The Vanguard Group" manages 264 investment funds that must be well funded.

It was in 2016 that Airbus launched the Neo version of its flagship aircraft, the A321, whose long-haul version, the A321NeoXLR, was presented in 2019 for a rapid entry into operation. This is what the American manufacturer could not accept without reacting. However, unlike Airbus, whose A320 series architecture allowed for larger engines, Boeing only had the latest versions of the B737-800 whose landing gear was a little too low to support the right engines. And instead of completely redesigning a new aircraft, as Airbus did to gradually replace the A320 with the A350 of totally original design, Boeing looked for the cheapest formula, the one that required a minimum of research costs. We've seen the result.

But what was also found was that the culture of safety had gradually disappeared in favor of that of the financial result. And given the complexity of building an aircraft and the multiplicity of subcontractors, each in charge of building a part or even a very small part of the aircraft, the guarantee of safety has become a real headache and it forces manufacturers to invest considerably in quality controls. However, it seems that these investments were not made by Boeing for a few years and the manufacturer is now paying the price. The penalty is very strong and the manufacturer's image is permanently affected.

The latest avatar is the resignation of current CEO David Calhoun, who will step down at the end of 2024. A new management will then have to take the reins and this never goes without some strong jolts.

Is Boeing in danger? Certainly not. The company is still very strong and has a powerful military and space production. On the other hand, it is now that we realize the need to have at least two major manufacturers, if only to absorb the huge orders that have already been registered and are not ready to stop.