The latest news details about the Boeing crash worldwide says that the
Boeing 737 MAX 8 airplanes are grounded until further notice. These terrible
tragedies have taken 346 lives from both the Ethiopian Airlines and the Lion Airline
and it’s hard to overstate the effect on loved ones, particularly the Canadian
family that lost three generations at once which has devastated them.
The
business continuity aspects of this incident however should be discussed so
that business leaders can manage events effectively, learn from mistakes, and
try to prevent these things from happening again. Since we rely on these
organizations to identify and implement the strategies that keep us safe, the
International Air Transport Association says the number of air passengers is
expected to double by 2036 and so the global aviation industry must
be held to a high standard while growing at breakneck speed.
In
the protection and safety of life many other critical industries must also be
involved including automotive, pharmaceuticals, and energy apart from the air
industry.
Risks involved
in automation.
Although
not fully confirmed in either case, It is strongly suspected that the crashes
may have had something to do with a new automated anti-stall system, known as
the Maneuvering Characteristics Augmentation System (MCAS). Boeing is facing
accusations that it failed to properly inform airlines and train pilots on the
MCAS, which does not bode well as it seeks to increase aircraft automation. Because
of the expected pilot shortage in the United States and the emerging
markets where the explosive demand for air travel is far outpacing the number
of qualified pilots, the automation trend is not going away. Many companies are
moving even further in this direction, including Boeing through its partnership
with Uber Elevate to design autonomous flying taxis.
Solid Crisis
Management Plan
With
the 8% fall in their stock, price we
can quantify the immediate business impact which is a highly predictable risk
for a company like Boeing and one for which they absolutely must have a solid
plan in place. It is also likely that airlines will seek compensation for the
grounding and there are some actions that Boeing can take which can enable them
bounce back fairly quickly from similar incidents and this entails strong
crisis management. The public can be remarkably forgiving when a business in
crisis handles it well, and strong leadership from the CEO makes all the
difference.
Effects of the
Boeing 737 Max 8 disaster
The
effects of the disaster on both Ethiopian Airlines and Lion Air are clearly on
the front lines when it comes to business continuity and management following
these incidents. If proven true that the crashes were the result of a
manufacturing glitch and Boeing was at fault, the airlines will still feel the
impacts on their business. The Airlines can be affected by any number of forces
beyond their control just like the Malaysian Airlines which suffered when
its airline disappeared and has never been recovered. The era in which relying
on the fact that you have the smartest people in the business on your team and
assuming that they will figure it out was an acceptable business continuity
strategy then but businesses today have solid plans in place, especially for
such predictable risks and need to review and test them regularly to make sure
that they are ready to face whatever lies ahead.
Investing in
public Safety and Sector Relationships for a Safe World.
The
Federal Aviation Administration (FAA) took longer than any other country to
ground the Boeing 737 MAX 8 fleet in the United States because Boeing is an
American champion with whom they work closely in partnership. Since so much
work in safety, security, and technology development is done in partnership
between the public and private sectors and this is often a good thing. The public-private
partnerships are essential in keeping the public safe and also it is important
that there be clear lines drawn between regulators and industry partners and
these close working relationships must not lead to breaches in oversight.
There is yet to be a conclusion in the investigations into the dual Boeing 737
MAX 8 crashes and the saddest part is that we may never really know and it will
undoubtedly have a lasting impact on Boeing as well as many airlines not least
Ethiopian Airlines and Lion Air, and most especially on the families of those
whose lives were lost. Hence the aviation industry is facing a tough challenge
ahead of which it should endeavor to overcome and pull through.
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