Boeing: Last Week Tonight with John Oliver (HBO)

LastWeekTonight
7 Mar 202432:36

Summary

TLDRThe script is a scathing commentary on Boeing's decline from being a reputable aircraft manufacturer to prioritizing profits over safety. It dissects the company's cultural shift after its merger with McDonnell Douglas, leading to cost-cutting measures, outsourcing, and a stock-price-driven approach that compromised quality control and transparency. The disastrous consequences of these decisions are highlighted through the 737 Max crashes, which exposed Boeing's negligence in informing pilots about a flawed safety system. The script calls for accountability, questioning the effectiveness of regulatory oversight while urging Boeing to rectify its tarnished reputation through genuine leadership and a renewed commitment to safety.

Takeaways

  • 😬 Boeing's reputation for quality and safety has deteriorated due to prioritizing profits and stock prices over engineering excellence.
  • 💸 Cost-cutting measures like outsourcing production and reducing R&D budgets compromised the safety of planes like the 787 Dreamliner and 737 MAX.
  • 💥 The 737 MAX crashes in 2018 and 2019 were caused by a flawed MCAS system that Boeing failed to properly inform pilots about.
  • 🐪 Boeing's acquisition of McDonnell Douglas in the 1990s brought a more profit-driven and cutthroat culture that clashed with Boeing's engineer-centered approach.
  • 😡 Internal messages revealed Boeing employees mocking regulators, the company, and safety issues with the 737 MAX.
  • 🙈 The FAA heavily relied on Boeing's self-certification of its planes, leading to lax oversight and missed safety issues.
  • 💰 Boeing prioritized stock buybacks and dividends over safety investments, diverting 92% of operating cash flow to investors from 2014 to 2018.
  • 👨‍✈️ Production line workers raised concerns about rushed production and safety compromises but were often ignored by management.
  • 🔄 Despite recent crashes and issues, Boeing's leadership has remained largely unchanged, casting doubt on their ability to enact meaningful cultural reforms.
  • 💭 Public trust in Boeing has eroded, with passengers actively avoiding flying on certain Boeing models due to safety concerns.

Q & A

  • What was the main issue with the Boeing 737 MAX planes that led to two fatal crashes?

    -The main issue was with the Maneuvering Characteristics Augmentation System (MCAS), which could push the plane's nose down on its own based on data from a single sensor. This system was not properly explained to pilots, and it could be activated erroneously, leading to the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.

  • What cultural shift occurred at Boeing after its merger with McDonnell Douglas?

    -After the merger, the McDonnell Douglas culture, which was more cutthroat and profit-driven, became dominant at Boeing. The company started prioritizing stock buybacks and dividends for investors over investing in research and development or safety.

  • What issues were found during the production of the Boeing 787 Dreamliner?

    -Boeing outsourced much of the Dreamliner's production to suppliers to cut costs, leading to issues with misaligned parts, incorrectly secured fasteners, and gaps between units. The plane's unveiling in 2007 was also revealed to be a sham, with the displayed model being just an empty shell.

  • How did Boeing's relationship with the FAA contribute to the 737 MAX issues?

    -Boeing was allowed to use its own employees as FAA-designated inspectors to certify the planes' airworthiness, creating a conflict of interest. The FAA also heavily relied on Boeing's analysis of the MAX's safety, lacking the ability to effectively analyze much of the company's data.

  • What were some of the damning internal messages revealed about Boeing's awareness of the MCAS issues?

    -Internal messages showed that Boeing knew about the dangers of MCAS throughout the MAX's development. One test pilot failed to recover from an MCAS activation in a simulator, calling it 'catastrophic.' Another employee described the plane as 'designed by clowns, who in turn are supervised by monkeys.'

  • What recent issue with the 737 MAX has raised further safety concerns?

    -In August 2022, the FAA warned that using the engine anti-icing system on the MAX for more than 5 minutes could cause the engine housing to shatter, potentially leading to decompression and loss of control. Pilots are now using Post-it notes and timers as reminders to turn off the system.

  • What changes have been made to address Boeing's safety issues?

    -Congress passed legislation rolling back some of Boeing's ability to oversee its own planes, and the FAA has demanded Boeing come up with a plan to address safety concerns within 90 days. However, concerns remain about the company's commitment to change under its current leadership.

  • How did Boeing's focus on stock prices and cost-cutting impact safety?

    -Boeing diverted 92% of its operating cash flow from 2014 to 2018 towards stock buybacks and dividends, far exceeding its spending on R&D for new planes. This focus on cost-cutting and pleasing investors led to rushed production and compromised safety measures.

  • What was the issue with the Maneuvering Characteristics Augmentation System (MCAS) on the 737 MAX?

    -MCAS could push the plane's nose down based on data from a single sensor, which could be faulty or activated erroneously. Pilots were not properly informed about MCAS or trained to handle such situations, contributing to the crashes.

  • How did Boeing's reputation for safety and quality change over time?

    -Boeing was once renowned for its commitment to safety, quality, and craftsmanship, with a culture of openness and attention to detail. However, after the McDonnell Douglas merger and increased focus on profits, the company's reputation suffered as safety concerns mounted.

Outlines

00:00

✈️ Passengers Recount Terrifying Flight Incident

The main story is about a recent incident on an Alaskan Airlines flight where a door plug became dislodged, causing a gush of air and panic among passengers. The plane, which was relatively new, landed safely but experts say it was mostly luck as a passenger could have been sucked out at takeoff or catastrophic injuries could have occurred at cruising altitude. Boeing CEO Dave Calhoun took responsibility but gave an unclear explanation about a 'quality escape' that allowed an unsafe plane to fly.

05:01

🔄 Boeing's Cultural Shift After McDonnell Douglas Merger

The paragraph discusses how Boeing's culture shifted after merging with McDonnell Douglas in 1997. The McDonnell Douglas management team's profit-driven and cutthroat culture became dominant, with a focus on increasing stock prices rather than quality and safety. Boeing relocated its headquarters away from the commercial plane operations, prioritized stock buybacks over R&D, and introduced slogans like 'less family, more team,' signaling a shift away from its engineer-centered open culture.

10:01

💸 Cost-Cutting and Outsourcing for the 787 Dreamliner

The paragraph explores Boeing's cost-cutting measures and outsourcing strategy for the 787 Dreamliner project. To reduce costs, Boeing slashed R&D budgets, outsourced production to numerous suppliers, and aimed to develop the plane for less than half the cost of previous models. This led to quality issues, communication challenges, and a plywood mock-up being passed off as the real Dreamliner at the unveiling ceremony. The plane was delivered years late and billions over budget.

15:02

⚠️ The Flawed 737 MAX and the MCAS System

The paragraph details the development of Boeing's 737 MAX jet and the flawed MCAS (Maneuvering Characteristics Augmentation System) that contributed to two deadly crashes. To compete with Airbus, Boeing rushed the MAX's design and production, cutting corners and failing to adequately inform pilots about MCAS, which could force the plane's nose down based on a single faulty sensor reading. Pilots were given minimal training on iPads, and Boeing initially dismissed concerns about MCAS after the first crash.

20:02

🕵️ Lack of Regulatory Oversight and Boeing's Self-Regulation

The paragraph discusses the lack of effective oversight from the Federal Aviation Administration (FAA) and Boeing's self-regulation practices. The FAA heavily relied on Boeing employees to certify the MAX's safety, and for decades, Boeing used its own 'FAA-designated inspectors' to approve planes, leading to conflicts of interest. Boeing successfully lobbied to reduce government oversight of airplane designs, allowing it to regulate itself even more, while some Boeing inspectors faced pressure to limit safety analysis.

25:03

🚨 Boeing's Continued Safety Issues and Need for Change

The paragraph highlights Boeing's ongoing safety issues and the need for fundamental change within the company. Despite the MAX crashes and investigations revealing concerning practices, Boeing continues to face new issues, such as a recent FAA directive about a potential engine housing shattering hazard on the MAX. Boeing's new CEO, Dave Calhoun, claims to prioritize accountability and transparency, but his past leadership role during problematic decisions raises doubts. Whistleblowers argue that new leadership is needed for meaningful change.

30:05

🕳️ A Satirical Look at Boeing's Corporate Culture

This paragraph offers a satirical and exaggerated portrayal of Boeing's corporate culture and priorities. Through a series of humorous statements, it mocks Boeing's focus on stock prices over safety, its cost-cutting measures, lack of accountability, and the disconnect between its leadership and the realities of plane manufacturing. The satire aims to criticize Boeing's perceived misplaced values and questionable practices that have compromised its reputation.

Mindmap

Keywords

💡Boeing

Boeing is a major American aerospace company and one of the largest aircraft manufacturers in the world. The video primarily discusses Boeing's safety culture, corporate practices, and the controversies surrounding the 737 Max aircraft. It highlights Boeing's shift from an engineering-focused mindset to prioritizing profits and shareholder value, which allegedly compromised safety standards.

💡737 Max

The 737 Max is a series of commercial aircraft models manufactured by Boeing. The video focuses on the safety issues and fatal crashes involving the 737 Max, which were linked to a flawed software system (MCAS) and Boeing's rushed production process. The 737 Max became a symbol of Boeing's alleged negligence towards safety in pursuit of cost-cutting and competition with Airbus.

💡MCAS

MCAS (Maneuvering Characteristics Augmentation System) is a flight control software system introduced on the 737 Max. It was designed to automatically push the plane's nose down in certain situations to prevent stalls. However, the video alleges that MCAS could be triggered by a single faulty sensor and that Boeing failed to adequately inform pilots about the system, contributing to the 737 Max crashes.

💡Stock buybacks

Stock buybacks refer to a company repurchasing its own shares from the stock market, often to inflate the stock price and increase shareholder value. The video criticizes Boeing's practice of diverting significant funds towards stock buybacks instead of investing in research, development, and safety measures for its aircraft.

💡Corporate culture

Corporate culture refers to the values, beliefs, and practices that define an organization's work environment and decision-making processes. The video highlights the shift in Boeing's corporate culture from a focus on engineering excellence and safety to prioritizing profits and shareholder returns, allegedly at the expense of safety standards.

💡Self-regulation

Self-regulation refers to the practice of industries or companies regulating themselves without external oversight or government intervention. The video criticizes Boeing's ability to self-regulate through the use of FAA-designated inspectors employed by Boeing, which allegedly created a conflict of interest and compromised safety oversight.

💡Whistleblowers

Whistleblowers are employees or former employees who reveal wrongdoing or unethical practices within an organization. The video mentions Boeing whistleblowers who raised concerns about the company's safety practices and prioritization of profits over safety, suggesting that their concerns were not adequately addressed by the leadership.

💡Accountability

Accountability refers to being responsible and answerable for one's actions or decisions. The video questions Boeing's accountability for the safety lapses and fatal accidents involving the 737 Max, suggesting that the company has not taken full responsibility or implemented meaningful changes to address the underlying issues.

💡Reputation

Reputation refers to the public perception or esteem held towards an entity, such as a company. The video contrasts Boeing's historical reputation for excellence and safety with its alleged prioritization of profits and shareholder value, which has eroded its reputation and public trust in recent years.

💡Transparency

Transparency refers to operating in an open and honest manner, without secrecy or deception. The video criticizes Boeing's lack of transparency in communicating safety issues and design flaws to regulators and pilots, suggesting that greater transparency is needed to rebuild trust and improve safety practices.

Highlights

Passengers are sharing their terrifying experience on board an Alaskan Airlines plane that lost a door plug during flights.

Boeing CEO Dave Calhoun had an odd response when asked about the safety issue: 'How did an unsafe airplane fly in the first place? Because a quality Escape occurred.'

Boeing used to be synonymous with quality and craftsmanship, but its reputation has been tarnished by a series of alarming incidents and prioritizing stock prices over safety.

The merger with McDonald Douglas in 1997 marked a shift towards a more cutthroat and profit-driven culture at Boeing.

Boeing rushed the production of the 787 Dreamliner, outsourcing work to save costs, leading to significant problems and delays.

The 737 Max was developed hastily to compete with Airbus, without proper safety considerations, leading to two fatal crashes.

Boeing concealed key information about the MCAS system from pilots and regulators, contributing to the crashes.

Boeing employees mocked the FAA, the company, and the plane's problems in internal messages, describing it as 'designed by clowns.'

The FAA relied heavily on Boeing employees to vouch for the Max's safety, lacking the ability to effectively analyze Boeing's data.

Boeing successfully lobbied to reduce government oversight of airplane designs, allowing it to regulate itself even more.

Boeing whistleblowers say the company won't change until it has new leadership at the top.

On booking sites, users can now exclude specific Boeing models from their flight searches, indicating a loss of public trust.

The narrator suggests Boeing should advertise the kind of company it has become, prioritizing stock prices over safety and quality.

The narrator satirically rewrites Boeing's marketing slogans to reflect its current practices and priorities.

The transcript highlights the need for fundamental changes at Boeing, including new leadership and a renewed focus on safety and quality over profits.

Transcripts

00:04

our main story tonight concerns

00:06

airplanes the place you go to say I'll

00:08

get some reading done before watching

00:10

Nine episodes of The Office you've

00:11

already seen and landing in Tucson

00:13

planes make many of us nervous even

00:15

though commercial air travel is the

00:17

safest form of mass transportation but

00:19

accidents do happen and there was one

00:21

recently that got a lot of attention

00:24

passengers are sharing their terrifying

00:26

experience on board an Alaskan Airlines

00:28

plane that lost a door plug during

00:30

flights what was supposed to be a short

00:33

trip from Portland to Ontario California

00:35

for Garrett Cunningham turned out to be

00:37

one of the most frightening experiences

00:39

of his life a gush of of air I look to

00:42

my left and part of the plane is gone my

00:45

brain couldn't compute what I was

00:46

looking at yeah of course it couldn't

00:49

our minds filter out things that

00:51

shouldn't make sense mine for instance

00:52

refuses to acknowledge that tomatoes are

00:54

fruits or that the shoe Bill isn't

00:57

extinct does that really look like

00:59

something that should exist at the same

01:01

time as the iPad I think not now

01:04

thankfully that flight landed safely

01:06

with only a few injuries but experts say

01:08

that that was mostly luck for one thing

01:10

if someone had been sitting in the

01:11

window seat with their seat belt off

01:13

they could have been sucked out of the

01:15

plane and second this happened just

01:17

after takeoff but if they'd been at

01:18

cruising altitude injuries might have

01:20

been catastrophic and that plane was

01:23

almost new it had been delivered by the

01:25

manufacturer Boeing around 2 months

01:27

earlier and that's too soon for a

01:29

sneaker to fall apart let alone a

01:32

multi-million dollar aircraft now Boeing

01:34

CEO Dave Calhoun was quick to take

01:36

responsibility saying Boeing is

01:38

accountable but when pressed on exactly

01:40

what had taken place had an odd response

01:44

how did an unsafe airplane fly in the

01:46

first

01:48

place because a quality Escape

01:52

occurred can you qu Escape occur what is

01:55

a quality

01:57

Escape I think that's the description of

01:59

what people are finding in their

02:01

inspections um uh anything that could

02:05

potentially contribute to an accident

02:09

what quality didn't escape a part of the

02:12

plane did that's a terrible answer when

02:15

you asked how an unsafe plane flew in

02:18

the first place we need more information

02:20

than essentially the plane was unsafe

02:22

yeah everybody knows that there's a

02:24

hole in the side of it and the

02:27

exact nature of the Escape is pretty

02:29

alarming given that according to the

02:30

preliminary investigation four bolts

02:32

that were supposed to keep the door plug

02:34

in place were missing and when Alaska

02:36

checked their other max9 planes they

02:38

found loose bolts on many of them the

02:41

next day the FAA announced that every

02:43

Boeing 7379 Max with a plug door would

02:46

be grounded until they were inspected

02:49

which is a bit of a relief and honestly

02:51

kind of a fun image i' like to imagine

02:53

Stern FAA inspectors going up to each

02:55

plane and saying you are grounded Missy

02:58

no inflight TV for a month and yes

03:01

planes are girls cuz think about it they

03:03

always have snacks and constantly say

03:05

leaving right now and then don't move

03:06

for another 15

03:07

minutes case closed it's beginning to

03:11

feel like this might be a much broader

03:13

issue within Boeing because it comes on

03:14

the heels of a years long string of

03:17

alarming incidents from fires on board

03:19

to a pair of massive crashes that were

03:22

blamed on flawed Boeing planes and just

03:24

this week the FAA issued a stunning

03:27

order to the company the Federal

03:29

Aviation Administration gave Boeing 90

03:31

days now to come up with a plan to

03:33

address safety issues this comes after a

03:36

report released on Monday found

03:38

employees did not understand their role

03:40

in safety and they feared retaliation

03:43

for raising safety related concerns uh

03:46

those are big problems when you've got a

03:48

factory that is making Jets yeah of

03:51

course although to be fair workers being

03:54

unable to raise safety concerns is a big

03:56

problem in a factory that makes anything

03:57

no one wants grocery stores selling

03:59

Captain Crunch oops all rat poison and

04:02

all of this is striking for a company

04:04

that genuinely used to be seen as one of

04:06

the greatest in America and that's still

04:08

one of the country's largest exporters

04:11

so if a company this big and this

04:12

important seems to be this troubled

04:14

tonight let's talk about Boeing and

04:17

let's start with the fact the Boeing

04:18

used to be synonymous with quality and

04:21

craftsmanship it was founded by William

04:23

Boeing in 1916 and over the years it

04:25

built nearly 100,000 planes for the

04:27

Allied Forces the first stage of the

04:29

Satin five rocket and Air Force One but

04:32

they're best known for revolutionizing

04:34

commercial aviation in 1967 Boeing

04:38

introduced the 737 have made over 10,000

04:41

of them since and the company's success

04:44

rests heavily on its well-earned

04:45

reputation for excellence like in this

04:48

video from an annual shareholder meeting

04:50

the first step in making a difference is

04:52

believing you can we make the impossible

04:55

happen on a regular basis so it can be

04:59

done you you just have to think of a new

05:00

way to do it let's just do it right

05:02

whatever it is quality safety

05:04

environment do it right and make it

05:06

something that you can be proud of I

05:07

wanted to develop products that had a

05:09

global reach and a global

05:11

impact and I'm doing it

05:14

[Music]

05:17

now I mean that sounds pretty good we do

05:20

the impossible great love the impossible

05:23

let's just do it right yes let's Wrong

05:25

Feels Like a bad way to do it I want to

05:28

develop a globally impactful product and

05:30

I did good for you you're a little too

05:31

close to the camera but in general I am

05:33

on board in fact Boe had such a great

05:37

reputation for safety among Pilots there

05:39

was even a common saying if it ain't Boe

05:41

I ain't going which the company put on

05:43

T-shirts lanyards and mugs that you can

05:46

still buy on their website all perfect

05:48

gifts for someone who loves branded

05:50

merch and does not love following the

05:53

news and that Stellar reputation has

05:55

been credited to the company's engineer

05:57

centered open culture William Boeing

05:59

himself once said after noticing some

06:01

shoddy workmanship on his production

06:03

line that he would close up shop rather

06:05

than send out work of this kind and one

06:08

project leader in the 80s and early 90s

06:09

is remembered for saying no secrets and

06:12

the only thing that will make me rip off

06:13

your head and down your neck is

06:15

withholding information and I'm sorry

06:18

but that should be the mug you want a

06:20

shift merch that's how you do it but

06:23

it's pretty clear that we're a long way

06:25

from that culture today and most

06:27

observers will trace the shift back to

06:29

this pivotal event a major announcement

06:32

today in the world of Aviation Boeing

06:35

and McDonald Douglas today announced

06:37

they would joined together to form the

06:38

world's largest aircraft manufacturer

06:41

this is I believe a an historic

06:44

moment in aviation and

06:47

Aerospace yeah the sky boys got business

06:50

married Boeing merged with McDonald

06:52

Douglas who were primarily known for

06:54

military planes and had a lousy

06:56

reputation for commercial airliners most

06:59

notably the dc10 which had multiple

07:01

accidents resulting in over 1100

07:04

passenger fatalities and look was

07:06

merging with the McDonald Douglas

07:07

Aerospace Manufacturing Corporation SL

07:09

murder Emporium that Boeing CEO's worst

07:13

decision probably not because he also

07:14

and this is true married his first

07:17

cousin so the last decision I'd ask this

07:20

guy to make is who it's a good idea to

07:22

couple up

07:24

with and while Boeing was the acquirer

07:27

in the partnership it soon became clear

07:28

that the McDonald Douglas culture which

07:30

was much more Cutthroat and profit

07:32

driven was going to become dominant

07:35

early on the McDonald Douglas management

07:37

team even gave their Boeing counterparts

07:39

a plaque featuring an Economist magazine

07:41

cover about the challenges of corporate

07:43

merges which sounds benign until you see

07:46

that the actual cover was this picture

07:48

of two camels and McDonald

07:50

Douglas exec added the line who's on top

07:54

and setting aside the weirdness of

07:56

gifting your co-workers camel porn it

07:58

begs the the question what was going on

08:00

at the economist back

08:02

then spare a thought for the employee

08:05

who dreamt of doing business journalism

08:07

only to find themselves digging through

08:08

photos of horned up camel banging

08:11

in the

08:12

dirt a year after the merger was

08:14

finalized boing announced a new stock

08:16

buyback program taking company money

08:19

that could have gone to making planes

08:21

and using it to inflate stock prices

08:23

instead and even mechanics at the

08:25

company noticed the culture shift there

08:28

is a m major campaign launched called

08:31

Share value and the idea was that they

08:35

wanted everybody to be aware of the

08:36

stock price and they wanted everybody

08:39

working together to increase the stock

08:43

value even the technical meetings

08:45

everything revolved around boing stock

08:47

prices yeah that's not reassuring

08:50

because that's not where you want their

08:52

priorities focused no wants to get on a

08:54

plane and he good afternoon this is your

08:56

captain speaking we had a few technical

08:58

problems but our maintenance crew is has

08:59

assured us that the stock price is still

09:01

holding strong so let's get this big

09:03

metal tube full of you and your loved

09:04

ones up into the sky shall we and the

09:07

culture change was solidified by the

09:08

decision to relocate the corporate

09:10

headquarters from Seattle where their

09:12

commercial planes were actually designed

09:13

and built 2,000 miles away to Chicago

09:17

because as their CEO put it when the

09:19

headquarters is located in proximity to

09:22

a principal business the Corporate

09:24

Center is inevitably drawn into

09:26

day-to-day business operations and yeah

09:29

it should be you're essentially saying

09:31

hey we're going to be making big

09:33

business decisions over here so we don't

09:35

need to be bothered with you nerds and

09:37

you're keeping planes in the air

09:39

now CEO Phil conit soon left

09:42

the company amid a Contracting Scandal

09:44

and was replaced by Harry Stoner the

09:46

former CEO of McDonald Douglas he was an

09:49

aggressive Cost Cutter who pushed

09:51

boing's management to play tougher with

09:53

its Workforce and to introduce the

09:54

slogan less family more team which

09:57

frankly would have been great advice for

09:59

Phil Condit when he was choosing a

10:01

romantic partner less Family Phil you

10:04

want to be a team but like not one

10:06

that's related by

10:08

blood but the problems with the whole

10:10

stock price first approach soon became

10:12

apparent during the production of the

10:14

787 Dreamliner it was a new lighter

10:17

plane the Boeing announced in 2004 but

10:20

Stone Cipher drastically cut the R&D

10:23

budget you know the money for creating

10:25

the plane even as the company authorized

10:27

large stock BuyBacks and dividends for

10:29

investors under his plans the Dreamliner

10:32

would be de developed for less than half

10:34

of what their previous new plane had

10:36

cost Bo also sought savings by

10:38

Outsourcing production to about 50

10:41

suppliers each of whom was responsible

10:43

for managing its own subcontractor so

10:45

basically the plan was for boing to

10:47

create the plane the same way someone

10:49

creates a gingerbread house from a kit

10:52

essentially assembling a bunch of pieces

10:54

other people made leading to a finished

10:56

product that structurally speaking was

10:57

always going to be a mess and

11:01

years later Boeing itself produced a

11:04

promotional video that admitted that

11:05

plan was a

11:07

Fasco executing a project of such

11:10

complexity proved to be more than some

11:12

suppliers could

11:14

handle wrinkles were found in the

11:17

composite skins from one supplier

11:20

Fasteners were incorrectly secured on

11:22

sections of the tail there were gaps

11:25

between units that were supposed to fit

11:27

tightly together we had our partners and

11:29

then they had Partners who had partners

11:32

and the different cultures and the

11:34

communication uh was very challenging

11:37

and added a lot of complexity you know

11:39

it's never a great sign when you're

11:41

talking about the manufacturing process

11:42

for a plane the same way a doomed open

11:45

thropple talks about their private life

11:47

we had our partners and then they had

11:49

Partners who had partners and

11:50

communication was very challenging and

11:52

added a lot of complexity and long story

11:54

short now we all have

11:57

chlamidia and on top of that Stone

11:59

Cipher was forced to resign in the wake

12:01

of an affair with a Boeing VP and was

12:03

replaced by the company's third CEO in

12:05

as many years Jim McNerney who if

12:07

anything accelerated the cost cutting

12:09

but despite all the setbacks from

12:12

Outsourcing Boeing managed to roll out

12:14

the dream liner on time in an elaborate

12:16

ceremony in 2007 except there was one

12:20

small catch we were all inside the

12:22

factory with artificial lighting big

12:24

stage Tom brocca huge

12:27

screens

12:30

then they open the doors of this giant

12:33

assembly Bay and en rolls this beautiful

12:36

beautiful aircraft we learned that the

12:39

whole thing was a

12:42

sham beautiful isn't it absolutely

12:46

beautiful I realized the doors were made

12:48

of plywood this plan that we were

12:51

admiring was completely a shell inside

12:54

what I realized walking around it is

12:56

that you could you know look up in the

12:58

wheel well and you could see daylight

13:00

wow what a historic moment so exciting

13:03

to see the unveiling of the first

13:05

airplane made entirely out of plywood

13:07

and lies the plane was supposed to take

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its first test flight within two months

13:12

of that launch but unsurprisingly that

13:14

didn't happen in fact the Dreamliner

13:16

didn't carry commercial passengers for

13:18

years finally delivering planes three

13:20

years late and $25 billion over budget

13:24

and almost immediately there were

13:26

problems multiple planes had fires on

13:28

board including two in Boston and Japan

13:31

within 9 days of each other which

13:32

investigations link to a defective

13:34

battery made by a subcontractor that

13:37

Boeing had never audited so the FAA

13:39

grounded the Dreamliner the first time

13:42

it had grounded an airplane model since

13:44

the mcdonal Douglas dc10 in 1979 again

13:48

making it pretty clear that the wrong

13:49

attitude had prevailed after the merger

13:52

basically the wrong camel came out on

13:55

top and investigations revealed that

13:58

even people people building the

13:59

Dreamliner were worried about its safety

14:01

in 2014 aler released hidden camera

14:04

footage of a worker at a Dreamliner

14:06

plant asking fellow employees a pretty

14:09

pointed question did you fly one um no

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you won't fly on

14:15

one did you fly on one of these

14:20

planes did you fly on one of

14:23

these probably not I would one of these

14:26

ples you wouldn't why wouldn't you huh

14:29

why wouldn't you because I see the

14:31

quality vide going down around here did

14:35

you fly one of these yeah it's sketchy

14:37

sketchy I probably would but I mean I a

14:40

death

14:42

too it's

14:44

true out of 15 workers he asked 10 said

14:48

they wouldn't fly on that plane and

14:50

honestly that last guy is almost worse

14:53

because if I had to pick between a plane

14:54

that two-thirds of workers refuse to get

14:56

on and one that would only be ridden by

14:58

death wish Dave I'd pick the former

15:02

every time but while the Dreamliner had

15:04

its problems at least it never had a

15:06

fatal accident but that cannot be said

15:09

for Boeing's next plane the 737 Max in

15:12

2011 as Boeing was rolling out the

15:15

Dreamliner its main competitor Airbus

15:17

was unveiling the A320 Neo a fuel

15:20

efficient update of their already

15:22

popular A320 planes and it was a wild

15:25

success Boeing caught completely off

15:27

guard quickly announced a new fuel

15:29

efficient plane it hadn't even

15:31

engineered yet the 737 Max they wanted