Boeing's Setbacks Show Why US Industries Lose Competitive Edge

Boeing's problems keep piling up. The company faces a new inquiry over B787 Dreamliner safety inspections and is feeling the blowback from sanctions on Russia.

Passengers and crew members have been evacuated from a Corendon Airlines Boeing 737-800 after one of the plane's tyres burst during landing in Turkey.

The accident occurred on Thursday at Gazipasa, an airport near the Turkish town of Alanya.

It was the third serious incident involving one of the aviation giant's aircraft in just two days, the Daily Mail noted.

Bad news has dogged Boeing for the past few years, undermining its profits and driving down its share price.

Earlier this week, the US Federal Aviation Administration (FAA) opened a new probe into whether the Seattle-based corporation broke rules during inspections of its long-haul B787 Dreamliner passenger jet, and whether its employees falsified aircraft records.

The FAA announced last month that Boeing had "voluntarily" revealed that some of its employees had not performed required tests to confirm adequate bonding and grounding of the fasteners connecting the wings to the fuselage, and had then falsely reported the checks had been completed.

Quoting a source familiar with the issue, CBS News said as many as 450 aircraft could be affected, including around 60 airframes still on the production line. According to the FAA, the aircraft still in Boeing's possession are undergoing re-inspection, while the company maintains that the reported "misconduct" would not pose an "immediate safety-of-flight issue."

Whistleblowers Raise Alarm Over Boeing Aircraft Defects

The FAA's latest inquiry comes on the heels of a US Congressional investigation into the safety culture and manufacturing standards at Boeing. Sam Salehpour, a Boeing quality engineer, told Congress last month that the industrial giant was cutting corners to speed up production — which is fraught with acute safety risks.

The whistle-blower also complained that Boeing employees raising red flags over quality issues were "ignored, marginalized, threatened, sidelined and worse." He told Congress that he was afraid of being subjected to "physical violence" after exposing the aerospace corporation's flaws.

Two other Boeing whistleblowers, Joshua Dean, former quality auditor at Boeing supplier Spirit AeroSystems, and John "Mitch" Barnett, a former Boeing employee, passed away in May and March, respectively. Dean died after a short illness, while Barnett was found dead in an apparent suicide.

Barnett and Dean both raised the alarm over manufacturing defects in Boeing's 737 Max and other planes, after a series of crashes involving the aircraft.

In January, all 171 Boeing 737 Max 9 planes were temporarily grounded by the FAA after a door panel blew out on an Alaska Airlines flight. The same month, an oxygen leak was discovered on board a Boeing 737. Remarkably, the aircraft was scheduled to carry US Secretary of State Antony Blinken from the Davos World Economic Forum.

At least ten more whistle-blowers, including former and current employees, are ready to testify against the aerospace company, the Independent reported, quoting lawyers for both Dean and Barnett.

US Russia Sanctions Backfired on Boeing

Earlier this month, the Wall Street Journal (WSJ) reported that Boeing is facing a new problem stemming from anti-Russia sanctions, imposed by the US over Moscow's special operation in Ukraine. As a result, the industrial giant cannot deliver enough B787 Dreamliners.

According to the WSJ, the trouble was caused by a lack of heat exchangers – temperature-regulating parts for the B787 – which were previously produced in Russia. Even though the production was shifted to the US and the UK, new factories have proven incapable of keeping up with demand.

Boeing's inability to obtain enough heat exchangers disrupted the pace of Dreamliner manufacturing. The company was forced to warn investors that it will not deliver as many planes as anticipated this year. American Airlines blamed Dreamliner delays for its decision to suspend some international and long-haul flights this year and next.

Boeing also severed ties with a major Russian titanium supplier and halted selling spare parts and maintenance services to Russian airlines that operate its passenger planes.

The WSJ admitted that US anti-Russia sanctions significantly backfired on Boeing and jet manufacturing in general, naming Russia "a big player in the global aerospace supply chain."

Boeing's Starliner Launch Scrubbed

Boeing's space mission also faced obstacles on May 7, with the first manned launch of the company's Starliner to the International Space Station (ISS) being postponed by US aerospace manufacturer United Launch Alliance (ULA).

According to NASA, the reason for aborting the launch was the need "to complete data analysis on a pressure regulation valve on the liquid oxygen tank of the Atlas 54 rocket‘s Centaur upper stage and determine whether it is necessary to replace the valve."

NASA has reportedly re-scheduled the launch to May 17 at 6:16 p.m. ET to give time for technicians to replace the valve.

Boeing Reflects US Manufacturing Industry Flaws

Commenting on the scandals surrounding Boeing, Chinese daily newspaper Global Times alleged that the aerospace firm has suffered from "the loss of skilled engineering talent and the reckless outsourcing of production processes to cut costs" over the past few decades.

However, the core problem lies in the industrial giant's shift it priorities from safety to profit, while cashing in on the reputation it had gained in previous decades, according to the daily.

While the US is currently accusing China of disrupting its "re-industrialization" efforts, America's problems are homegrown, the newspaper pointed out. It added that Boeing is not the only American company to have compromised its standards for the sake of financial gains. The Chinese report advised US producers not to blame others for losing their competitive edge.