Boeing’s 737 Max Crisis May Cost It the Upper Hand
The twin crashes of the jet have put the aerospace giant on the defensive and could shift the power dynamics with its suppliers.
A curbing of Boeing’s aggressive cost-cutting push and supply-chain ambitions may be a healthy outcome.
Photographer: Stephen Brashear/Getty ImagesBoeing Co. CEO Dennis Muilenburg has called the crisis surrounding the company’s 737 Max jet a “defining moment” that will ultimately make the planemaker stronger and better. It also may turn out to be a defining moment for Boeing's suppliers, one that has the potential to shift the balance of power back in their favor.
The global grounding of the Max is nearing its third month as Boeing works to present regulators with a fix for the flight-control software system that was a key factor in two fatal crashes of the jet. With the exception of perhaps the airlines that use the Max and Boeing’s own executives, no one is rooting harder for the jet’s return than the suppliers whose revenue and profit goals are very much entwined with its continuing success.