Consumers have little choice when it comes to plane manufacturers: It’s pretty much Boeing or Airbus. There are currently over 10,000 Boeing commercial planes in service, and over 13,600 Airbuses. But depending on where you’re going, when you need to get there, and your budget, you might not even have the option to pick. For a certain segment of the right wing, the Alaska Airlines episode has become an example of how “wokeness” ruined a once-great American company — because, in their telling, Boeing and US airlines made too many “diversity hires” of unqualified people from underrepresented racial and gender groups. In fact, the door plug incident is a glimpse into how the engineering giant has become a shadow of itself since about the 1980s, experts tell Vox, due to corporate greed: a culture that ignored its expert workers and put cost-cutting financial efficiency above all. The 737 Max 9 can have a maximum of 220 seats, but this particular Alaska Airlines flight had just 178 — and those fewer seats allowed the plane to also have fewer emergency exit doors, according to federal regulations. The door was made by the Boeing subcontractor Spirit Aerosystems, while Boeing did the final assembly.
Experts say that the root of Boeing’s present troubles is a longstanding culture issue. Over the years, the company’s top decision-makers went from detail-oriented engineers to slick suits with MBAs.
Historically, Boeing was renowned for its boundary-pushing innovations in aviation, which helped put commercial air travel on the map. But in 1997, Boeing bought a rival plane maker called McDonnell Douglas; instead of Boeing culture influencing McDonnell, however, the opposite happened. The engineer-focused company got a heavy dose of the cutthroat GE ethos as McDonnell’s CEO — a Welch disciple — became the president and chief operating officer, and later CEO, of the merged company.
The company began relying more on subcontractors; It had its own fuselage plant until 2005, when it sold it to a private equity firm — that entity became Spirit AeroSystems. Today, Boeing only completes the final assembly of a plane after it sources parts from thousands of suppliers. Outsourcing is cheaper — but using so many suppliers reduces the fine-tune control and oversight a company has over the parts that make up their product, according to aviation experts.
While lean management was the name of the game for Boeing’s rank-and-file, in the past decade the company’s executives spent over $43 billion buying back their own stocks and paying out nearly $22 billion in profits to shareholders. By buying back shares and removing them from the public market, the individual value of a share automatically rises even though nothing about the company’s operations has changed.
1. What aspect do consumers primarily consider when selecting a flight with a specific airplane manufacturer?A. The airplane's performance and featuresB. The availability based on airline, destination, and budgetC. The reputation of the airplane manufactureD. The diversity of the airline's crew2. What does the 'door plug incident' reveal about Boeing according to the text?A.
It indicates a shift in Boeing's policy towards more eco-friendly practices
B. It is presented as evidence of Boeing's prioritization of financial efficiency over expertise.C.
It shows Boeing's attempt to create a more diversified fleet of airplanes.D. I
t is an isolated mechanical failure unrelated to the company's overall performance.3. What initial influence did the Boeing and McDonnell Douglas merger have?A.
McDonnell culture was overshadowed by Boeing's established culture.B.
McDonnell's culture became the dominant force within the merged company.C.
The merger had no significant cultural impact on either company.D.
Both companies maintained separate and distinct cultures post-merger.4. What does the phrase 'lean management' imply about Boeing’s workforce strategies?A.
The workforce was expanded to meet increasing demandB.
The workforce was encouraged to gain additional skillsC.
The workforce was expected to focus on eliminating waste and improving efficiencyD.
The workforce received significant bonuses5. How do stock buybacks affect shareholders?A.
They decrease the dividends received by shareholdersB.
They prevent shareholders from selling their stocksC.
They result in an increase in profit payouts to shareholdersD.
They lead to a reduction in the total assets of the company