By consolidating big airplane manufacturers into even bigger ones, those mergers have reduced industry competition.ĭuopolies slow innovation. The airplane industry has been shaped by a series of recent mergers. It’s a story about an iconic American giant that lost its way because of mergers, risk-aversion, and excessive outsourcing.įasten your seat belts, put your seat in the upright position, and prepare for takeoff. This is more than a story about two airplane crashes. Unfortunately, media coverage of the crash mostly ignores Boeing’s corporate history. The actual story of the 737 Max crash begins with that McDonnell-Douglas purchase in 1997, 21 years before the first accident in late 2018. Why did Boeing buy McDonnell-Douglas? Because the airplane manufacturing industry is consolidating, and Boeing is pursuing profit at the expense of human lives. In lieu of actual innovation, the company cut corners to maintain growth rates. Since the acquisition, the company hasn’t innovated as fast as it once did. Why does Boeing save money at the expense of human lives? Because Boeing purchased McDonnell-Douglas in 1997 and absorbed its ultra-corporate culture with relatively low engineering standards. Why did Boeing lower its engineering standards? To lower costs and increase efficiency - the goal was to save money. Why did the software fail? Because Boeing’s executive team has lowered its engineering standards. Why did the 737 Max crash? Because of a software failure. The more I studied the crash, the more I realized the media wasn’t telling the full story. As I write this, the airplane is still barred from flying in every country. Three days after the second crash, the United States government grounded all Boeing 737 Max airplanes. Then, in March 2019, Ethiopian Airlines Flight 302 crashed and ended another 157 lives. The first crash happened in October 2018 when Lion Air Flight 610 crashed 13 minutes after takeoff and killed all 189 people on board. That’s exactly what happened with two recent Boeing 737 Max crashes, which led to the deaths of 346 total people. Immediately after a crash, a team of investigators observes the aircraft, studies the scene, and replays the pre-crash commentary from the cockpit. The airline industry has a strict process for evaluating accidents to prevent future ones. But what if we could understand the systemic issues that cause certain airplane crashes? Even though they represent a small fraction of transportation-related crashes, their rarity and drama hold a steel grip on our hearts and minds. And all of us turn to the news.Īirplane crashes capture an outsized share of attention. When an airplane falls out of the sky, everybody stops.
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