Grounded Classification: Grounded Theory and Faceted Classification
Boeing, You’re Grounded.
Transcript of Boeing, You’re Grounded.
Boeing, You’re Grounded.
The Aircraft Manufacturer’s Fight or Flight
Response
Kelsey Bross and Annika Gustafsson
Table of Contents
Abstract 3
A Little Background: Boeing 4
Where Did it All Go Wrong? 4
Some Unexpected Turbulence 5
Lion Air Flight 610 5
Ethiopian Airlines Flight 302 6
Timeline 7
Crisis Communication Strategy 8
Initial Reaction 8
Picking Up the Pace 8
Boeing Tries to Save Face 9
The Stakeholders Weigh In 10
Airlines and Countries 10
The Consumers 10
The FAA 10
Boeing Employees and Engineers 10
Heading Back to the Skies? 11
How Boeing Could Have Boarded the Right Flight 12
References 14
Appendix A 17
Appendix B 18
Abstract
On October 29, 2018, the Boeing Company experienced a major shock when one of its 737 MAX planes
plunged to the ground, killing all passengers inside. After another five months went by, the company
experienced some deja-vu when yet another MAX aircraft came crashing down, again killing all on
board. With both crashes having similar system failures prior to disaster, investigations opened up to
determine what the origin of disaster was. It was discovered that the security system approved to be inside
of the aircrafts malfunctioned, sending the planes into chaos. With their safety procedures and
management tactics in question, Boeing had to face a distraught and wary public and defend their image.
Boeing’s initial response made the company appear standoffish and closed off to the public. Ambiguity
and confusing messages left stakeholders wondering exactly what Boeing believed: do they take
responsibility for the crashes, or do they deem their planes are safe for travel? However, as time went on,
the company chose to work harder on developing stronger and more effective safety programs and
training procedures. Boeing is still currently working on redesigning the 737 MAX to be completely safe
for takeoff, but until then, the public is sitting and waiting to see if the company is ready for fight or
flight.
This case study will delve further into the workings of this crisis, touching upon the company’s history
and decision to create the 737 MAX, the crisis itself, and all of the aftermath with company and
stakeholder responses. It will also focus on what crisis communication strategies Boeing seemed to
implement throughout the crisis timeline, as well as what we believe Boeing could or should have done
instead to keep their reputation trusted and respected.
A Little Background: Boeing
The Boeing Company has been manufacturing airplanes since 1916. Founded by William E. Boeing, the
company defines its vision as: “people working together as a global enterprise for aerospace industry
leadership” (Boeing, 2019). The company had its beginnings as a mail-carrying service from Seattle to
Canada, and worked closely with the United States military during the 1920s to create aircrafts like
fighter planes and transports. By developing itself as a strong brand, Boeing has been able to sell planes
to several airlines, most notably Southwest, American, and United Airlines. The company aspires to
“unite for service strength around the globe” and has developed several products throughout its history,
including aircrafts, defense products, space products, and other systems for use in aircrafts and travel
(Boeing, 2019).
Boeing is most well-known for its various aircraft models. Over the years, the company has released the
747-8 for high-volume routes, the 767 for deliveries, the 777 for fuel-efficient passenger travel, and the
787 Dreamliner. However, the biggest model that stands out to the public is the 737, Boeing’s fastest-
selling airplane. Boeing has sold more than five thousand 737s, and due to the aircraft’s success, the
company wanted to revamp the aircraft. However, this would prove to work out poorly for Boeing, as
their new creation, the 737 MAX, experienced some massive turmoil before the plane could even leave
the runway (Boeing, 2019).
Where Did it All Go Wrong?
The entire crisis truly begins with the creation of the 737 MAX aircraft. Natalie Kitroeff from the New
York Times describes that around nine years ago, Boeing experienced a major wake-up call. The
manufacturer’s main competitor, Airbus, released a new fuel-efficient jet onto the market, and Boeing
immediately felt the pressure to create something that would make them stand out against the global
competition. With this in mind and a small time-frame laid out in front of them, Boeing executives and
engineers decided to scrap their idea for an
entirely new aircraft and started working on
the airline’s newest project: updating the 737
and creating the 737 MAX.
During the early stages of creation, Boeing
designed the MAX to be a single-aisle plane
with seats for around 200 passengers. It was
also designed to fly more efficiently and
across greater distances. However, this
required a bit of a change in power. To meet
these standards, Boeing increased the size of
the engines on the MAX, which changed the
overall aerodynamics of the aircraft and
raised the potential for stalling mid-flight.
In order to get the planes out faster, Boeing
decided to make some cuts in spending. While designing the plane, the implementation of a synthetic
The Air Current | 2019
airspeed system was discussed. This system would be able to detect when the plane’s angle-of-attack
sensors were not working correctly and would allow the plane to disregard this information while in
flight. However, Boeing’s managerial staff chose to forego the request due to extra costs, the impact on
training requirements that pilots would need, and the short timeline the company had to produce the new
jet.
The development process reached its biggest issue when it was decided that the 737 MAX planes would
include the Maneuvering Characteristics Augmentation System (MCAS). This system would help
prevent the aircraft from stalling due to the increased engines. To avoid this issue, the MCAS system
would push the plane’s nose down to stabilize the jet in certain situations. According to the New York
Times, the FAA turned to the manufacturer to approve the use of MCAS, which meant that Boeing did
not need to disclose the system’s details with agency engineers. Boeing also decided to expand MCAS
use later into production, which lead to the plane relying on a single sensor during an in-flight situation.
Once the systems were in place and the aircrafts were finished, Boeing was not required by FAA
regulations to submit a formal review of the MCAS system. The jet was deemed to be safe, pilots
received minimal training, and it was sent out to airlines to become a part of their daily travel aircrafts
(Kitroeff, 2019).
Some Unexpected Turbulence
In the last quarter of 2018 and beginning of 2019, Boeing Co. experienced two horrific and deadly
crashes of their Boeing 737 Max aircraft, which left 346 people dead. Both of these incidents stemmed
from pilots losing control of the planes after having trouble with the Maneuvering Characteristics
Augmentation System (MCAS). In the days following the second crash, the Federal Aviation
Administration temporarily suspended all operations of Boeing’s 737 MAX airplanes.
Lion Air Flight 610
On the morning of October 29th, 2018, Lion Air Flight 610 took off from Jakarta, Indonesia and began its
trip to Pangkal Pinang, Indonesia. Prior to the flight, the aircraft was having both speed and altitude
issues, but it was cleared for takeoff regardless. In the minutes right before leaving the runway, the pilot
also claimed that there were flight control problems, but again, they were going to proceed with the flight.
When the plane took off, the pilots were warned that the plane may stall. The nose of the plane was being
forced downward as they tried to fix the issue. With little time, their efforts to steady the aircraft were
unsuccessful. At the 12-minute mark of the flight, air traffic control lost contact and the plane plummeted
into the ocean, killing all 189 people on board. The
question of what exactly caused the malfunction
was still unknown. Following the crash, the
Indonesian government conducted a search of the
crash site, where they recovered the victims along
with pieces of the wreckage to help uncover
underlying issues. It wasn’t until November of
2018 that it was found that during the flight, the
MCAS (Maneuvering Characteristics
Augmentation System) had malfunctioned and was
causing the downward nose tilt. The MCAS is A member of the rescue team in Indonesia sifts through
the rubble of the crash
Gulliver | 2018
supposed to automatically adjust the horizontal trim of the aircraft when it is believed to be in danger of
stalling. In March of 2019, it was discovered that on the night of October 28th, 2018 (the night before the
crash), a similar issue had occurred in-flight, but the crew on board, which was different than those
members aboard the fatal flight the next day, was able to save the plane from crashing by following
instructions on how to stabilize the trim motors. This issue was not communicated to the crew that was on
Flight 610 (Giordano, 2019).
Ethiopian Airlines Flight 302
On March 10th, 2019, Ethiopian Airlines Flight 302 took off from Addis Ababa, Ethiopia and was
scheduled to land in Nairobi, Kenya. Upon takeoff, the pilot reported flight control issues. Similar to the
issues that led to the crash of Lion Air Flight 610, the nose of the plane was being forced down by the
MCAS. Pilots turned off the MCAS in order to attempt to regain control of the aircraft, but they needed to
power it up again in order to correctly turn the plane around to return to the airport. Despite efforts, the
737 MAX crashed into the ground at over 700 mph and killed all 157 passengers and crew members on
board. Three days after the crash, on March 13th, 2019, the FAA temporarily grounded all Boeing 737
MAX planes. On April 4th, 2019,
Ethiopian Airlines released the data that
was gathered from the black box after the
crash. The preliminary reports showed
that pilots correctly carried out
emergency procedures suggested by
Boeing. The set of instructions given to
override the MCAS had failed Flight
302. This evidence points to the fault of
the malfunctioning safety system
installed in the Boeing 737 MAX
(Stewart, 2019). With this being the
second crash for this aircraft, attention
was immediately drawn to Boeing, who
had been silent since the initial crash in
October of 2018.
The remains of Flight 302 are collected
by volunteers and rescue teams in
Ethiopia
Time | 2019
Crisis Communication Strategy
Initial Reaction
Immediately following the October 29th crash of Lion Air Flight 610, Boeing initially put blame on the
pilots of the aircraft, saying that they did not completely follow the safety regulations given. In the
statement following the Lion Air crash, Boeing defended the safety of their planes. Not included in the
statement, the company claimed that in the manuals onboard the planes, they had instructions on how to
override the MCAS (Boeing, 2019).
The first statement from Boeing CEO following the Lion Air crash BOEING | 2018
Picking Up the Pace
It was after the second deadly crash in Ethiopia that Boeing began to really communicate with the public.
On March 12th, 2019, two days after the second crash, Boeing promised to make changes in their safety
system. This comes a day before the FAA temporarily grounds all 737 MAX planes. In response, on
March 19th, 2019, Boeing CEO Dennis Muilenburg released a statement officially announcing the
updates that Boeing will be making to its safety software, as well as offering additional training for pilots.
Muilenburg states, ‘“We know lives depend on the work we do, and our teams embrace that responsibility
with a deep sense of commitment every day,’ the letter says. ‘Our purpose at Boeing is to bring family,
friends and loved ones together with our commercial airplanes — safely”’ (Chicago Tribune, 2019).
In the following months, Boeing has continuously worked on repairing their safety software and
improving the Boeing 737 MAX. During this process, they have used their website as a platform to
promote the effort they are putting into making the 737 MAX one of the safest aircrafts in the sky. In May
of 2019, Boeing began testing their updated software, but received feedback from the FAA to continue
working. All of these announcements can be found under the tab, “737 MAX Updates.” Along with their
own official timeline of the crisis, the tab also features a section that is entitled “Employee Voices”. This
is a collection of videos that depicts the impact that this crisis has had among employees. Subjects of
these videos range from pilots to engineers to security personnel. Craig, the head pilot for Boeing
commented on the aircraft manufacturer's role, “I feel a very large commitment to the public to ensure
that we prevent accidents like this from ever happening again. And we’re going to figure out how to make
not only our products but the industry safer going forward” (See Appendix A) (Boeing, 2019).
In September of 2019, Muilenburg released a set of “initial fundamental changes” that Boeing has put
into effect. This PDF shown below was released on their website and on their social media.
BOEING | 2019
Currently, Boeing is still focusing on getting the 737 MAX planes back in the sky and consistently
updating their website with any information regarding the process of the project.
Boeing Tries to Save Face
Much of the communication strategy exhibited by Boeing and its leaders runs parallel with the image
restoration theory. This theory emphasizes maintaining a positive image and reputation. In this aftermath,
Boeing has attempted to shift the public’s negative view of their aircraft. Instead, they are promoting a
seemingly new vision of the Boeing 737 MAX, a much safer one.
Of the five main strategies associated with the image restoration theory, Boeing first mainly focused on
denial and evasion of responsibility. As shown in the initial statements, they emphasized the safety of
their planes. Putting the responsibility of the accidents in the hands of the pilots, Boeing claimed that they
had written in step-by-step solutions to override the MCAS. It was not until the black box data from the
Ethiopian flight was released that they acknowledged their need to delve deeper into the emergency safety
systems on each aircraft.
A large part of their strategy post-March 10th has been corrective action. As they attempt to pick up the
pieces of this crisis, they have made a lot of strides in trying to prove to the public that they are improving
their safety systems. Part of the problem leading up to both accidents was that Boeing was criticized for
rushing the process of creating this aircraft. This time around, they are documenting the process of
creating the new system. Boeing is highlighting their work relationship with the FAA, who allowed the
faulty MCAS to be approved in the first place. Another corrective action that Boeing has taken is offering
more extensive training to pilots. Many pilots came forward after the accidents claiming that they did not
feel as though they received enough training, which could have been a factor in the crashes. Perhaps their
most extensive strategy comes as a form of reducing offensiveness. In July, Boeing announced that they
would be compensating the families of the victims with 100 million dollars set aside from the company.
Although this does not undo what has already been done, it is Boeing’s way of apologizing to those who
were affected by this crisis.
The Stakeholders Weigh In
Airlines and Countries
Once the crashes occurred, several of Boeing’s stakeholders felt the need to take their own safety
measures. After the first of the two crashes, countries and airlines themselves recognized a major issue in
Boeing’s 737 MAX planes and began to ground them. United Airlines and Southwest Airlines have
given passengers who booked flights on 737 MAX aircraft the chance to rebook their flights with no fees.
This move was respected by passengers, as many felt uneasy traveling on 737 MAX planes after the
crashes they witnessed. Southwest Airlines even went as far as to sue Boeing for 100 million dollars the
airline lost in income due to the numerous groundings. Southwest lost 3.7 billion dollars due to the
Boeing crisis (Goodwyn, 2019).
The Consumers
Boeing stating that the plane’s design was safe immediately after taking ownership and responsibility for
the crashes, which caused many members of the public to become anxious. The ambiguity of the
response messages left people wondering what the truth behind the situation really was. CEO Dennis
Muilenburg addressed the public for the first time 26 days after the second crash, and he addressed them
through a pre-recorded video released onto social media platforms only, which was not received well by
the public (See Appendix B). They thought the response felt insincere, especially considering the pre-
recorded format. Business Insider describes how the public also recoiled at Muilenburg suggesting the
pilots were to blame. All of the mixed messages and defensive stances put the public on edge, and many
are still unsure as to whether or not they trust the 737 MAX’s overhaul (Baker, 2019).
The FAA
The Federal Aviation Administration (FAA) also took a hit from the Boeing crisis. Many people stepped
in and blamed the FAA for not keeping regulations tighter during the development of the 737 MAX. The
FAA was the last organization to step in and ground the planes, which left the public confused as to why
individual airlines were left to make that choice after such a serious pair of incidents. The FAA is also
being pressed by the public to take a closer look at how pilots work with interface systems in the aircrafts.
The lack of presence by the FAA during the first renovations of the 737 MAX left Boeing to make
decisions for themselves, and now the public wants to make sure that the FAA is preparing pilots in how
to properly handle the new software.
Boeing Employees and Engineers
Much of the information learned after the crashes came from Boeing employees and workers, who were
also impacted by the crises. One worker described to the New York Times how he witnessed the company
rejecting the more expensive safety features and filed complaints about the issue (Gelles, 2019). Another
Times article mentions that several other employees discussed problems with the design process, noticing
managers putting money over proper equipment (Kitroeff, 2019). These employees and engineers are
now scrambling to put together a better plane for the company while staying out of the scrutiny following
the incident.
Heading Back to the Skies?
Boeing has been struggling to rebound from these disasters. To this day, Boeing 737 Max planes are still
out of the sky due to safety concerns and numerous testing procedures. The planes were placed on a six-
month safety ban following the second crash. According to NBC, there are also numerous investigations
still ongoing about how the technology was allowed to pass through the FAA in the first place
(Newburger, 2019). However, through the bad outlook, Boeing has made some changes to try and regain
trust with its stakeholders. The company has already run over 700 test flights with the new software
system in place, and it has invited more than 200 pilots to sit in on informational sessions. Forbes also
mentions that Boeing has created new safety committees and is going to propose that engineers must
report to the chief engineer of the company, not managers of individual programs. Boeing has also
proposed that a product and safety services unit respond to the chief engineer as well (Bogaisky, 2019).
Apart from the social implications of the crashes,
Boeing has also received a sharp blow in financial
areas. The company is down around 7.3 billion
dollars since the crashes due to all of the
groundings and delays, not to mention that it set
aside 100 million dollars to compensate the
families of the victims. Over the last two quarters,
Boeing has reported losses for the company.
Since the crisis began, Boeing has released a
statement mentioning that CEO Dennis
Muilenburg has been stripped of his chairman
title. In the release, the company mentions that
Muilenburg will continue to work as Boeing’s
CEO, and he will focus on keeping the company
running while the 737 MAX keeps being tested for approval. The company
believes that this decision will “ensure full support to Boeing’s customers around the world” and it has
full confidence in Muilenburg remaining as CEO and running the business as a whole. Muilenburg
himself supported and respected the decision made, stating that Boeing wants to honor its commitments
to its consumers (Boeing, 2019).
After the updates to the website, Boeing has now given stakeholders the chance to read into how they can
protect themselves from crises. This tactic, called self-efficacy, gives Boeing the chance to step back into
the public’s good graces by providing them with more information about safety and regulations than
originally provided before the two crashes. The company’s website now features a whole section devoted
solely to the 737 MAX, and on the first page, several safety initiatives are listed so Boeing’s consumers
can see what the company has done and is continuing to do (Boeing, 2019).
MARKET REALIST | 2019
The biggest issue for Boeing lies with trust going forward. Even though the planes have been grounded
and pulled, many setbacks in the reconstruction process leave consumers wondering if the 737 MAX will
ever be fit enough for travel. Boeing is set to deal with a tough challenge in regaining customers’ trust.
So far, according to NBC, Boeing is looking into hiring a larger PR firm to help reintroduce the jets to the
runways, and Boeing wants to put more emphasis on the pilots (Newburger, 2019). Boeing CEO Dennis
Muilenburg addressed this factor in this quote:
MUILENBURG | 2019
Boeing has planned to continue holding meetings with the FAA and other aviation authorities to discuss
the 737 MAX’s return and approval. If the company can prove to its publics that the aircraft is reliable, it
may begin to see customer trust rebuild and allow for future success.
In addition, Boeing may have to forego future aircraft plans to make up for the loss of credibility and lives
following this crisis. CNN states that Boeing was planning on releasing a mid-size airplane, speculated to
be called the 797. The company mentions that they are going to try and work on the 797 while also
redesigning the 737 MAX, but that release could still be months away. Meanwhile, CNN also reports that
Boeing’s rival, Airbus, has gotten to announce their own mid-size jet in the wake of the crisis, leading
many to believe that Boeing will see fewer sales due to a later release (Isidore, 2019).
How Boeing Could Have Boarded the Right Flight
This crisis has yet to fizzle out, with all Boeing 737 MAX planes still grounded as they continue to make
updates to their emergency safety system. There is also a plethora of lawsuits that will be plaguing the
company for years to come. After diving deeply into the workings of this crisis, there were many mistakes
made that led Boeing to this mess.
One of the main issues with this crisis lies in the fact that Boeing is a manufacturing company. They
rarely deal with interactions with consumers, and when they came face-to-face with these incidents, they
were not at all prepared. In a New York Times article entitled, “As Boeing Confronted a Swelling Crisis,
They Had Little to Say”, written by David Gelles, he interviewed Richard Levick, who is the owner of a
crisis communications firm in Washington. Levick weighed in by saying “Boeing responded as a
business-to-business company, but this has become a business-to-consumer issue. Consumers now care
about what plane they are on” (Gelles, 2019). By keeping mainly silent and out of the public from
November to March, Boeing caught the attention of the public in the worst way. They were criticized for
not being more vocal or taking more action to keep the public safe. By defending themselves and their
products, they lost the trust of the consumer. Directly after the Lion Air flight, Boeing should have
grounded all planes, instead of having countries decide for themselves. By pushing the responsibility onto
the proxy communicators to protect their publics, Boeing looked extremely passive.
In recent articles, many let the blame fall equally on the FAA and Boeing. During the creation of the
Boeing 737 MAX, some things were swept under the rug by both parties. In order to follow their
projected timeline and budget, Boeing did not reveal all details regarding the 737 MAX. On the other end,
the FAA did not have the knowledge to be able to fully comprehend the complexity of the MCAS.
Between the faulty communication and ignorance of the FAA, the Boeing 737 MAX was already in a
dangerous position (Koenig, 2019). This crisis could have been avoided if Boeing and the FAA had taken
the time to thoroughly examine all aspects of the plane before approving it. Boeing should take into
consideration all of the missteps that led them here and learn from them.
Boeing has some learning to do before it can be fully trusted again by its publics. With these suggestions,
Boeing could have been more successful in communicating with its stakeholders, or even have avoided
the crisis to begin with. Simple mistakes can lead to a company’s downfall, and hopefully after carefully
revamping the 737 MAX, Boeing can step back into the public’s good graces and get people to their
destinations in an efficient and safe aircraft.
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warning-that-the-plane-was-in-danger-of-stalling-pilots-could-not-ascertain-their-speed-or-
altitude-and-told-air-traffic-controllers-that-they-were-experiencing-a-flight-control-problem-
the-nose-of-the-plane-seemed-like-it-was-being-forced-downward-38.
Stewart, E. (2019, April 4). Preliminary report on Ethiopia crash finds pilots followed Boeing's
procedures properly. Retrieved from https://www.vox.com/policy-and-
politics/2019/4/4/18295528/boeing-737-max-ethiopia-faa-dagmawit-moges.
Ulmer, R. R., Sellnow, T. L., & Seeger, M. W. (2019). Effective Crisis Communication: Moving
From Crisis to Opportunity. Thousand Oaks: SAGE Publications.
Appendix A
BOEING | 2019
Boeing "Employee Voices" Videos. (n.d.). Retrieved October 16, 2019, from
https://www.boeing.com/commercial/737max/737-max-update.page#/employees/craig.