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737 MAX-9 preliminary report

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BlackBart
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Re: 737 MAX-9 preliminary report

Post by BlackBart »

There’s a lot in here -

https://www.npr.org/2024/01/17/12249983 ... ocumentary

“In interviews with dozens of former employees, nearly all reported a major cultural shift within the company's executive ranks after the Boeing merger with McDonnell Douglas in 1997, Kennedy said.”

“The consensus from those who participated in the documentary is that Boeing's decades-long commitment to a safety-first approach to production was replaced by a focus on increasing shareholder value. That, they claimed, made it a speed-driven process where employees were allegedly discouraged from flagging problems, ultimately resulting in poorer quality aircraft.”
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Post by foggydogg »

Bwa-oh.
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Post by matthew1 »

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Post by BlackBart »

So interesting. And the McDonnell spat is pretty revealing. I always assumed Boeing was the larger company with a higher stock value, and they would be the director of the merged companies, but obviously M-D acquired some serious clout somehow in that deal.

Another headline:

United CEO’s frustration with Boeing’s problems
https://www.cnn.com/2024/01/23/business ... index.html

"United has 79 of the Max 9s, more than any other airline, and had originally scheduled nearly 8,000 flights with the plane for this month before the incident, according to Cirium, an aviation analytics firm.

"Beyond the current 737 Max 9 problem is what this means for Boeing’s orders for the 737 Max 10, a newer, larger version and more expensive version of the 737 Max that has yet to be certified by the FAA. It will be at least five years in a best case scenario before Boeing can deliver those Max 10 jets to United, Kirby said, and the airline is now no longer counting on getting that plane in the future.

" “I think the Max 9 grounding is probably the straw that broke the camel’s back for us,” said Kirby. “We’re going to build a plan that doesn’t have the Max 10 in it.” "
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Post by BlackBart »

Insider poop on Boeing!

A whistleblower has revealed that factory records show that door plug was taken out because of rivet issues at Renton, then replaced by assembly line mechanics, and it’s likely there NEVER WERE ANY BOLTS installed. He/she is completely versed in the processes and computer systems that keep track of each step of assembly.

https://www.seattletimes.com/business/b ... max-9-jet/

He/she explains the reason for spilling the beans - they’ve seen the culture go down ever since being acquired by McDonnell-Douglas, and they want to get back to building great planes.

Now this is news to me - I was always under the impression it was a Boeing purchase or a merger. Was Boeing in trouble and owed way too much money so M-D scooped them up? No wonder their leadership style took over the company.

Matts piece mentions that McDonnell despised Douglas…..well that merger was 1967! Was that animosity going on all that time?

My wife was just suggesting - is this bad enough their stock will tank, and shareholders demand a CEO resignation and changes in the board? Is it bad enough to drastically change the culture? Move headquarters back to Seattle?
Last edited by BlackBart on 25 Jan 2024, 11:30, edited 1 time in total.
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Post by matthew1 »

They just moved to Washington DC. A huge portion of their revenue is defense and space now. That stuff has gigantic margins, only one customer, decades-long contracts, and when problems arise, sometimes they are shielded from public knowledge or scrutiny.

The US federal government is the richest customer in the history of the world. A dream client.

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Post by foggydogg »

Another update from an angry Juan Browne.
69 1800s, @500k Death by Rust
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Post by BlackBart »

Wiki M-D history -

"McDonnell Douglas in 1989 introduced a major reorganization called the Total Quality Management System (TQMS). TQMS ended the functional setup where engineers with specific expertise in aerodynamics, structural mechanics, materials, and other technical areas worked on several different aircraft. This was replaced by a product-oriented system where they focus on one specific airplane. As part of reorganization, 5,000 managerial and supervisory positions were eliminated at Douglas. The former managers could apply for 2,800 newly created posts; the remaining 2,200 would lose their managerial responsibilities. The reorganization reportedly led to widespread loss of morale at the company and TQMS was nicknamed "Time to Quit and Move to Seattle" by employees, referring to the competitor Boeing headquartered in Seattle, Washington."

M-D went from 132,500 employees in 1990 to 87,400 in 1992.

"In 1992, McDonnell Douglas unveiled a study of a double deck jumbo-sized aircraft designated MD-12. The study was perceived as merely a public relations exercise to disguise the fact that MDC was struggling under intense pressure from Boeing and Airbus. It was clear to most in the industry that MDC had neither the resources nor the money to develop such a large aircraft, and the study quickly sank without a trace."

"Following Boeing's 1996 acquisition of Rockwell's North American division, McDonnell Douglas merged with Boeing in August 1997 in a US$13 billion stock swap, with Boeing as the surviving company. Boeing introduced a new corporate identity based on the McDonnell Douglas logo, which showed the globe being encircled in tribute to the first aerial circumnavigation which was accomplished in 1924 by Douglas aircraft."
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Post by BlackBart »

This explains a lot -

The 1997 merger that paved the way for the Boeing 737 Max crisis

https://qz.com/1776080/how-the-mcdonnel ... max-crisis


"Late in the summer of 1997, two of the most critical players in global aviation became a single tremendous titan. Boeing, one of the US’s largest and most important companies, acquired its longtime plane manufacturer rival, McDonnell Douglas, in what was then the country’s tenth-largest merger. The resulting giant took Boeing’s name. More unexpectedly, it took its culture and strategy from McDonnell Douglas - even its commercial aviation department was struggling to retain customers.

"Reporting on the deal, the New York Times made an observation that now seems prescient: “The full effect of the proposed merger on employees, communities, competitors, customers and investors will not be known for months, maybe even years.” Nearly 20 years later, one such effect has become the aviation story of the year, or perhaps the decade—the crashes of two 737 Max jets and the loss of 346 lives, not to mention the still-rising associated costs of around $10 billion. "
......

" In a clash of corporate cultures, where Boeing’s engineers and McDonnell Douglas’s bean-counters went head-to-head, the smaller company won out. The result was a move away from expensive, ground-breaking engineering and toward what some called a more cut-throat culture, devoted to keeping costs down and favoring upgrading older models at the expense of wholesale innovation. Only now, with the 737 indefinitely grounded, are we beginning to see the scale of its effects.

“The fatal fault line was the McDonnell Douglas takeover,” says Clive Irving, author of Jumbo: The Making of the Boeing 747. “Although Boeing was supposed to take over McDonnell Douglas, it ended up the other way around.”
.......

"Since the start of the jet age, Boeing had been less a business and more, as writer Jerry Useem put it in Fortune in 2000, “an association of engineers devoted to building amazing flying machines.”
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