Most of all of us can relate to having a sibling we all know is the family’s favorite. I know my parents’ favorite is my older brother Peter, yet they still demand it was me. While I know I am great, I was an accident, so that argument is invalid. You probably aren’t your parents’ favorite child either; it’s only statistics. Even large organizations have their “golden child.” The NFL has Patrick Mahomes. The NHL has Sidney Crosby. The NBA has LeBron James. In the airline industry, the “golden child” is the Boeing 737.
Besides your sibling, of course, every golden child has a good reason for being the favorite. LeBron James, Patrick Mahomes, and Sidney Crosby are all ridiculously skilled at their respective sports. How can an ordinary object like the Boeing 737 be considered a golden child? For starters, it is the absolute standard in the aviation industry. Nearly every new airplane is introduced into the market to try to replace the B737; however, no design ever succeeds.
The B737 is a narrow-body, midrange aircraft. This airplane had its first flight in 1967, over 55 years ago. That is older than most of your parents if you’re my age. Stunningly, the aircraft is still under production today. Of course, to last the test of time, there have been many improvements made to the original airframe. As of now, there are more than ten different variations of the B73. There have been drastic changes to the B737 from the original model to the newest model. The original airframe (B737 100) could seat up to 130 passengers and was 94 feet long. However, the latest airframe (B737 MAX 200) is over 138 feet and can seat up to 204 passengers.
Boeing 737 100
Obviously, such drastic changes to an airframe have consequences for how the airplane handles and flies. Pilots would have to relearn how to fly these airplanes and go through months of expensive training. Boeing did not want companies to feel discouraged from buying these new airplanes, so the company came up with a workaround solution. Boeing introduced a system called Maneuvering Characteristics Augmentation System (MCAS) that made the new planes handle like the old ones. However, Boeing failed to inform airlines of this new feature, and when something is neglected in aviation, something terrible inevitably happens.
Beoing 737 MAX 200
The first B737 MAX was delivered to Malindo Air in May 2017. The new airplanes immediately started experiencing issues, and concern grew among airlines. Several pilots were recorded saying that the airplane’s autopilot felt like it was going rogue and fighting the pilots’ commands. After a series of deadly crashes and 346 deaths, the 737 MAX was grounded in March 2019. In less than two years, the seemingly most advanced airplane was not allowed to fly due to safety concerns.
After months of thorough investigation and years of lawsuits, the United States charged Boeing with fraud. The damage Boeing caused to hundreds of families is unrepairable, and the Boeing namesake is forever stained. However, as I mentioned before, the Boeing 737 is the golden child. The 737 MAX was approved to fly again in less than two years, and the Boeing company got off almost completely scotch free with only recoverable dents in the company’s stock.
The image above shows how different events influenced Boeing’s stock prices. Notice the crashes had a minute effect compared to Covid’s impact.