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Can Boeing win back trust after the 737 Max disasters?

US giant cannot expect the public to be placated overnight – it will take a lot of work, and perhaps some celebrity endorsements

Chris Blackhurst
Friday 19 July 2019 18:07 BST
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The company has put aside $4.9bn to cover the costs of the grounding
The company has put aside $4.9bn to cover the costs of the grounding (AP)

Let’s be honest. When have you ever been bothered about the type of aircraft you’re flying on? The airline will happily tell you which model it is, and furnish you with all sorts of details about its dimensions, wingspan, and so on. And you don’t want to know.

As far as you’re concerned, an airplane is an airplane. It’s to get you from A to B as quickly, and in as much comfort, and as safely, as possible. But if you’re aware that this particular variety has a chequered history, that it’s been modified after having been taken out of service following two disastrous crashes, you might, suddenly, take a keen interest. You would, wouldn’t you?

That is the challenge Boeing and its airline and leasing customers now face as they begin the process of getting the US manufacturer’s 737 Max back in the air, and back to the point where passengers board it without a second thought.

That’s the real struggle, that last bit. The authorities are likely to give the upgrade the all clear. Boeing hopes that will be later this year. The US Federal Aviation Administration (FAA) is in no rush, saying it is sticking to an orderly procedure, and will not be rushed. Nevertheless, the signs are encouraging. Boeing has put aside $4.9bn (£3.9bn) to cover the costs of the grounding. Most of that will go on compensating its customers for disruptions.

It may be that the near $5bn is not enough: if the FAA drags its heels, Boeing will have to dip further into its coffers to reimburse the airlines. However, Wall Street approves of what it is hearing and has pushed Boeing shares higher, in the belief the worst is over.

While the airlines may feel reassured – that a computer glitch has been resolved by altering the software, and that the 737 Max is therefore safe to fly – the passengers still need placating. Yes, the airlines can push ahead with their orders. Yes, they can produce glossy brochures and smart videos extolling the aircraft’s virtues. Yes, they can even rebadge the model, adding a new letter or calling it something else. But they have to convince the passengers to get on board.

A crucial part will be played by the pilots and cabin crews. If they pronounce themselves satisfied that will go some way towards supplying the reassurance the public seek. They, after all, are laying their lives on the line by flying the supposedly safer 737 Max. So if they’re prepared to do that, then it must be OK. To a point. There will be those who will insist the pilots and stewards are employees of the airlines, and in their pay. If they don’t agree to fly, they lose their jobs. So they would say that, wouldn’t they?

One factor in Boeing’s favour would be if the regulator was open and transparent, and prepared to go into detail about what it found, what occurred and how it was resolved. That would assist in smoothing out the lack of trust that exists between the public and authority – there is a large contingent of people today who automatically do not believe what those in power tell them. They say it’s safe, but they would say that wouldn’t they? How do we know they’re telling the truth?

Well, a full explanation would help. Unfortunately, that is not usually how regulators behave – they don’t like the warts and all analysis, it’s not in their nature, and their lawyers are always counselling to say the minimum for fear of creating an opening for litigation. In this instance, though, that is what is required. The FAA should step up and make a full and frank exposition.

There will be those, still, for whom this will not suffice. They will allege that the FAA is somehow in thrall to Boeing, that the mighty US corporation is able to hold sway. They, thankfully, will be in a small minority – vocal on social media and in blogs, maybe, but in reality, carrying little influence.

The return to confident use, because that is what it is, to the degree where people do not query what type of aircraft they’re being asked to use and are not tempted to switch operator and model, will not occur overnight. Boeing and the airlines should not expect as much, and neither should investors.

It will be slow and protracted. It will rely upon the pilots and crew, and the authorities. Also, endorsements by celebrities and leaders. This last point may seem fanciful, but in this age, people trust some individuals more than institutions, more than many politicians. Provided they are not in the pay of the airlines, and cannot be challenged on that ground, the more they use the Max 737 the better.

The markets always like to move ahead, to already discount future performance. So, for Boeing shares to climb, in the wake of the announcement about the compensation and a return to operations, was entirely natural, and to be expected. However, on this occasion, they may have jumped too soon. There is still a rocky journey ahead. The Max 737’s battle for hearts and minds has yet to begin.

Chris Blackhurst is a former editor of The Independent, and director of C|T|F Partners, the campaigns, reputational, crisis, and strategic communications advisory firm

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