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On Point with Meghna Chakrabarti

The leaders behind the fall of Boeing

On Point with Meghna Chakrabarti

WBUR

Talk Show, Daily News, News, Npr, On Point, Daily

4.23.5K Ratings

🗓️ 11 July 2024

⏱️ 49 minutes

🧾️ Download transcript

Summary

Boeing has pled guilty to federal charges related to two deadly 737 MAX crashes. What went wrong in the Boeing C-suite?

Transcript

Click on a timestamp to play from that location

0:00.0

In the spring of 2011, the CEO of one of the United States largest and most famous airlines

0:08.0

made a phone call to the head of one of the world's largest and most famous airplane manufacturers.

0:15.2

American Airlines Chief Gerard Arby had some tough talk for Boeing CEO

0:20.4

W James McNerney Jr.

0:23.8

You see, American was about to place an order for hundreds of new fuel-efficient jets from Boeing

0:30.3

rival Airbus. This must have been shattering news to McNerney.

0:35.0

American hadn't been an Airbus customer in almost 20 years,

0:39.0

and here was Arby on the other end of the phone telling McNerney, Boeing needed to act fast if it wanted a piece

0:46.8

of what would become the largest new aircraft deal in commercial aviation history.

0:53.2

Well McNerney did act swiftly, incredibly so for such a massive manufacturer.

0:59.8

Just three months after that call, McNerney decided Boeing was not going to design a brand

1:06.2

new airplane.

1:07.8

Instead, it was going to turn back to one of the most popular jets already in Boeing's fleet.

1:14.0

We are making a decision to invest in the 737 family.

1:22.0

We are announcing the 737 max.

1:25.0

This is on point. I'm Megna Chuck Rabardi and that was Nicole Piseki,

1:30.0

Boeing VP of Business Development in a company video unveiling the 737 max what

1:37.5

Boeing called quote a new engine variant of the market leading 737.

1:43.0

Now it seemed like a brilliant move back then because by July of 2011,

1:48.0

American Airlines announced that Boeing had one half its record-breaking 420 plane 16 billion dollar

1:56.7

deal Airbus got the other half and just two years later March 2013 McNerney told the U.S. Chamber of Commerce that Boeing's business

2:06.9

was booming.

...

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