4.5 • 705 Ratings
🗓️ 14 March 2019
⏱️ 10 minutes
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0:00.0 | Welcome to Axis ProRata, a podcast that takes just 10 minutes to get you smarter on the collision of tech business and politics. |
0:07.1 | I'm Dan Pramak. On today's show, more shoes to drop in the college bribery scandal, and a big tech executive joins the meatless meat movement. |
0:16.2 | But first, sad skies for Boeing. On Sunday, 157 people were killed when an Ethiopian airline's plane crashed into the ground. |
0:24.6 | It came just about five months after all 189 passengers of a Lion Air flight crashed into Indonesia's Java Sea, |
0:31.6 | and it didn't take long for the world to notice that both doomed vehicles were the Boeing 737 Max aircraft, which was only introduced |
0:39.3 | two years ago. So governments around the world almost immediately began grounding the planes, |
0:44.3 | which are flown by such airlines as Southwest, American, and United. But the U.S. government |
0:49.1 | waited for several days, first agreeing with Boeing that there weren't systemic problems |
0:53.8 | before finally |
0:54.9 | reversing course yesterday. |
0:57.0 | The big question now is if the 737 Max has a fatal design flaw in its flight control |
1:01.6 | system and if so, how regulators missed it. |
1:05.4 | The Wall Street Journal reports this morning that Boeing had already begun working on a fix, |
1:09.8 | based on preliminary data from the Indonesia |
1:11.2 | crash, but that it wasn't slated to be rolled out until April. It would have been earlier, |
1:16.5 | the article states, but the recent federal government shut down, quote, halted work on the |
1:20.8 | fix for five weeks, end quote. That wasn't in President Trump's announcement yesterday of the FAA's |
1:26.1 | decision. Boeing, understandably, has seen its stock price get hammered, losing nearly $28 billion |
1:31.8 | in market cap since Ethiopia crash, although for context, its shares do still remain higher |
1:36.6 | than where they began the year. |
1:38.5 | Its reputation, though, has probably taken an even bigger hit. |
1:41.8 | And as more facts come out, so might the reputations of those |
... |
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