New York (CNN Business) – Boeing is having a horrible month.
The company is at the center of an international firestorm after two fatal crashes in five months of its 737 Max planes.
The aircraft is supposed to be a workhorse for Boeing, and a critical part of the company’s fleet. The global fleet of 737 Max aircraft have been grounded and the company is the subject of a US criminal investigation over the plane’s certification and marketing. And while Boeing says there’s a fix on the way for the software potentially linked to the crashes, it doesn’t look like this problem has an easy end.
The 737 Max debacle has been compounded by other rough news for Boeing. Delays in delivering on space projects for NASA are sparking criticism. And a separate incident shook the US military’s faith in the company’s ability to deliver aircraft without issues.
All the bad news has Boeing under a microscope. “Is there something systemically wrong with the culture of Boeing, or is this a run of bad luck?“ Morningstar analyst Chris Higgins said. “Outside looking in, it’s hard not to question what’s going wrong.“
Boeing shares are down nearly 18% this month, and Boeing has shed more than $40 billion in value. It’s a rare dip for a company that has posted stellar profits, with sales of more than $100 billion last year.
CEO Dennis Muilenburg said in a public letter this week that safety is a top concern at Boeing and “ensuring safe and reliable travel on our airplanes is an enduring value and our absolute commitment to everyone.“
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