Boeing’s Slow-Motion Freefall

Boeing.

The name alone used to evoke images of engineering feats, aviation milestones, and a legacy so solid it seemed untouchable. But Boeing today? Not so untouchable. After years of spiraling crises, the company is now embroiled in another setback that makes you wonder: is this the beginning of the end for Boeing as we know it?

In January 2024, a Boeing jet flying with Alaska Airlines hit the news—this time, for all the wrong reasons. Mid-flight, a door plug malfunctioned, the kind of technical slip that sets off alarms at the FAA. The fleet grounded, Boeing’s reputation took another hit, and for the average observer, it was just one more reason to think twice about boarding a Boeing.

But this isn’t just one random error. It’s one of many in a string of what looks like systemic issues—a cascade of manufacturing slips, quality control problems, and operational snags that don’t just risk planes; they risk Boeing’s entire future.

The Cracks Are Showing

When a door plug violently separated from an Alaska Airlines Boeing 737 Max 9 at 16,000 feet in January 2024, it wasn't just another incident—it was a symptom of deeper problems within the aerospace giant. The event, which miraculously resulted in no serious injuries, led to the immediate grounding of 171 Boeing 737 Max 9 aircraft and sparked renewed scrutiny of Boeing's manufacturing processes.

The subsequent investigation revealed a stunning oversight: four critical bolts meant to secure the door plug were missing entirely. This wasn't a subtle technical malfunction—it was a fundamental failure in basic assembly and quality control, the kind of error that shouldn't happen in high-school shop class, let alone at the world's premier aircraft manufacturer.

A Question of Culture

Quality isn't optional when your product carries hundreds of lives at 600 mph. Yet Boeing's internal culture has shifted dramatically from its engineering-first roots. As new CEO Kelly Ortberg candidly admitted in October 2024:

"The trust in our company is eroded. We're saddled with too much debt. We've had serious lapses in our performance across the company, which has disappointed many of our customers."

The numbers tell a sobering story. Boeing has reported losses in virtually every quarter since early 2019, with total core operating losses reaching $39.3 billion. The company's long-term debt has skyrocketed from $10.7 billion in March 2019 to $53 billion by September 2024, with plans to raise another $25 billion through additional borrowing and stock sales.

Manufacturing Mayhem

Boeing's production challenges extend beyond single incidents. The company's vast global network of suppliers, already stressed by previous quality-and-safety crises, faces new pressures from ongoing labor disputes. A strike by 33,000 machinists that began in September 2024 has virtually halted commercial airplane production, costing Boeing an estimated $50 million per day.

The impact ripples through the supply chain. Small suppliers like Independent Forge Company, Inc. in Orange County, California, face difficult choices. As company president Andrew Flores noted, they might need to cut operations from five to three days per week to retain skilled workers whose "knowledge cannot be replaced."

The Space Race Slump

While Boeing struggles with earthbound problems, its space division faces mounting challenges that have led to a potential exit from the space business. Under new CEO Kelly Ortberg 's leadership, Boeing is exploring the sale of significant portions of its space operations, including the troubled Starliner spacecraft program and International Space Station operations.

The space division has become a significant financial burden, with Boeing's defense and space sector reporting losses of $3.1 billion in the first three quarters of 2024. The Starliner program's difficulties came to a head during its first crewed test flight in 2024, when five out of 28 thrusters experienced issues during the ISS docking procedure. The situation became particularly embarrassing when NASA - National Aeronautics and Space Administration made the unprecedented decision to return the spacecraft without its crew, reassigning astronauts Butch Wilmore and Suni Williams to return on a SpaceX vessel in February 2025.

Boeing's strategic restructuring of its space operations reveals a company in retreat from what was once a core business:

• The company will likely retain control of NASA's Space Launch System (SLS) for lunar missions
• Commercial and military satellite operations are expected to remain with Boeing
• Jeff Bezos' Blue Origin has emerged as a potential buyer for some of Boeing's NASA contracts

Boeing's position in space exploration has diminished significantly as SpaceX has become NASA's primary commercial partner. The company's recent challenges have validated NASA's strategy of maintaining multiple commercial partners for space operations. As Ortberg emphasized in his "less is more" approach, "We're better off doing less and doing it better than doing more and not doing it well," Ortberg said during an earnings call. "Clearly, our core of commercial airplanes and defense systems are going to stay with the Boeing Company for the long run. But there's probably some things on the fringe there that we can be more efficient with or that distract us from our main goal here."

A Crossroads

Boeing 's significance extends far beyond its balance sheet.

As America's largest exporter, it contributes an estimated $79 billion annually to the economy and supports 1.6 million jobs across all 50 states through its network of 10,000 suppliers. Its struggles pose strategic questions about American leadership in aerospace and aviation safety.

Ortberg's prescription for recovery focuses on fundamental change: "We really need to embark on a culture change that is something more than just a poster on the wall," he says.

The question isn't just whether Boeing can survive—its position in the commercial aviation duopoly virtually ensures that—but whether it can reclaim its position as a symbol of American engineering excellence. The answer will shape the future of global aviation for decades to come.

Boeing’s dilemma is one of identity: Does it try to hang on to its legacy in the commercial space and aerospace sector, or does it break off a part of itself to survive? Every move Boeing makes now doesn’t just set the stage for its future but could reshape the entire aerospace industry.

What happens next?

Whatever Boeing decides, we’re watching a giant make some of the biggest decisions in aviation history—and the impact will be felt for decades to come.