By Professor Arnaud ChevallierArnaud Chevallier, Okechukwu Aguoru, Leandro Dantas, Juliano Maia, Andrea Smith Kahn, Mahwesh
In 2019, two fatal plane crashes plunged Boeing in an unprecedented crisis, setting off a maelstrom of controversy about Boeing's corporate practices and the safety of the 737 MAX - the recently redesigned version of its most successful commercial jetliner. Within weeks, the MAX was grounded worldwide, and Boeing faced financial, legal, regulatory and reputational pressures. All while under intense media scrutiny and heightened safety concerns from the flying public. And then the COVID-19 pandemic hit the aviation industry, escalating the crisis into an existential threat to Boeing's commercial aviation business. Amid this perfect storm, Boeing executives faced one key question: How to restore Boeing's reputation as a leading aircraft manufacturer?
Learning Objective
- Identify the key elements — the question, alternatives, and criteria — needed to make a strategic decision under uncertainty.
- Structure the decision process to bring together these key elements while managing complexity.
- Understand the narrow-body passenger plane market and what led Boeing to face its biggest crisis to date.
