179 Dead, Stock Down 6%... Could The Government Just Shut Down Boeing For Good?

Another day, another Boeing catastrophe (it’s getting ridiculous). This time, a Jeju Air 737-800 ended its flight in a fireball at South Korea’s Muan International Airport, claiming 179 lives. The crash, which reportedly involved a botched landing and a collision with a concrete barrier, is the latest in a series of PR and operational disasters for the aerospace giant. And Wall Street is making them pay… Boeing’s stock is already down 6% this morning, pushing its year-to-date loss past 30%.

So what exactly happened? Flight 2216, carrying 181 people from Bangkok, Thailand, attempted a landing Sunday when things spiraled out of control. The plane skidded off the runway, slammed into a barrier, and burst into flames. Only two crew members survived, which is as miraculous as it is horrifying. Initial reports suggest a bird strike might have played a role (it’s hard to believe it wasn’t just some sort of mechanical failure, isn’t it?). South Korea’s Ministry of Land, Infrastructure, and Transport (MOLIT) has launched an investigation, pulling in U.S. agencies like the NTSB and the FAA. Even engine manufacturer CFM International is under the microscope.

Immediately after the fatal crash, MOLIT announced an emergency inspection of all B737-800 planes operating in South Korea. Meaning: No one’s flying a Boeing without double-checking every bolt and flap. And for good reason, at this point just take every Boeing plane to the junkyard (if it will save innocent lives). Of course, if you look up “Boeing” in the dictionary, it’s the definition of safety issues. The 737 MAX debacle, which saw two fatal crashes and a 20-month grounding, is still fresh in everyone’s memory. Add to that manufacturing defects, union strikes, and quality-control chaos, the company is clearly cursed (or has just been turning a blind eye to safety measures just to make extra money).

Whistleblowers like Sam Mohawk, a quality assurance investigator at Boeing, have been vocal about what they call “shambolic” conditions at the company. According to Mohawk, Boeing’s relentless push for faster production has compromised safety. Executives deny it, of course, but the pattern is hard to ignore. (Pro tip, Sam: Maybe invest in a home security system and a few guard dogs.)

In January, a panel blew off a 737 MAX mid-flight due to poor assembly, and earlier this year, another 737 MAX emergency landing raised eyebrows. Boeing claims to be addressing these issues with a new safety plan under CEO Kelly Ortberg, but critics argue that promises aren’t enough. Investors are fleeing like passengers on an emergency slide. Boeing’s shares, already battered by a strike that cost the company $5.5 billion, now face even more pressure. Competitor Airbus, despite its own backlog, is quietly benefiting from Boeing’s misery.

(Source: Pilot Institute)

Jeju Air, the South Korean low-cost carrier operating the ill-fated plane, isn’t faring much better. Its stock plummeted 9% this morning to an all-time low. Boeing’s future depends on more than just repairing planes… it’s about repairing trust. Aviation analyst Bjorn Fehrm notes that Boeing needs a cultural overhaul, not just a 60 minutes special explaining why nothing was their fault.

But with a 38% union-negotiated pay hike and an $8 billion loss through September, the company is hemorrhaging cash. At this point, just close the company down for good because it will definitely save lives.

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