Grounded trust: Boeing faces a global reputation turbulence

As mid-air scares mount and India’s recent air crashes link back to Boeing, the aerospace giant is navigating a trust crisis with global implications

By  Akanksha NagarJul 3, 2025 8:22 AM
Grounded trust: Boeing faces a global reputation turbulence
Boeing’s credibility collapse has real-world implications. If passengers avoid Boeing-operated flights, airline revenues will fall. Tourism could dip. (Image source: Moneycontrol)

On July 2, a Tokyo-bound Boeing 737-800 plunged 26,000 feet in under ten minutes before making an emergency landing in Osaka. For many, this wasn’t a surprise — it was the latest incident in a disturbing pattern. In India alone, the last three air crashes have all involved Boeing aircraft. Add to that a string of technical failures, mounting whistleblower testimonies, and scathing global inquiries, and the picture is clear: Boeing, once a symbol of American engineering supremacy, is now a brand caught in a nosedive of its own making.

Passengers, for the first time in India, are checking the aircraft manufacturer before booking their flight. Airline trust is no longer just about in-flight meals or on-time arrivals— it’s about whether the plane itself can be trusted to stay in the air.

In a country where domestic air travel demand is surging, and fleet expansions are central to the nation’s growth narrative, Boeing’s credibility crisis is fast becoming India’s aviation credibility crisis.

A Global Giant in Crisis

Boeing's troubles began long before the recent incidents. The 2018 and 2019 crashes involving the 737 MAX killed 346 people and triggered global outrage. What followed was a two-year grounding of the MAX fleet and damning revelations: internal emails showed employees mocking regulators and cutting safety corners to rush aircraft deliveries. The second crash also led to the ousting of Boeing's CEO at that time. Since then, the company’s issues have only compounded.

In 2024, a whistleblower and former quality inspector at Boeing testified before the U.S. Senate, alleging critical safety lapses in the manufacturing of the 787 Dreamliner and 777 models. Whistleblower Sam Salehpour, a Boeing engineer, had alleged that Boeing took shortcuts when manufacturing its 777 and 787 Dreamliner jets, and that the risks could become catastrophic as the airplanes age. Several engineers have reportedly also claimed that production speed was prioritized over safety. Congress, under bipartisan pressure, launched deep investigations. The U.S. Federal Aviation Administration (FAA) has stepped up audits, and class action lawsuits are piling up. It is to be noted that for nearly two years starting in 2021, the FAA and Boeing halted deliveries of the new Dreamliners while it looked into the gaps. Boeing said it made changes in its manufacturing process, and deliveries ultimately resumed.

Financially, Boeing is on shaky ground. It hasn't posted a full-year profit since 2018. Mounting losses—exacerbated by aircraft delivery delays, legal payouts, and cancelled orders—are threatening its long-term viability. CEO churn, labor unrest, and plant-level quality issues in factories have only worsened the perception. After banking record-high profits in the 2010s, Boeing, as per Reuters, has bled more than $30 billion since 2019 after two fatal crashes of its best-selling 737 MAX jet triggered production quality and safety concerns. The pandemic further squeezed the company. Revenue for the quarter through December'24 fell 31% to $15.24 billion, missing analysts' expectation of $16.21 billion. Cash burn was $14.3 billion in 2024, compared with a cash flow of $4.43 billion in 2023.

And now, with safety-related headlines re-emerging almost weekly, Boeing’s brand is bruised globally but perhaps nowhere more worryingly than in high-growth markets like India.

Growth Engine Caught in the Crossfire

India, with an estimated size at $13.89 billion ,is the world’s third-largest aviation market, and its domestic air travel expected to touch 350 million annual passengers by 2030. Massive fleet expansion plans are underway. Air India alone has placed orders for 220 Boeing jets. Akasa Air has committed to 226 Boeing 737 MAX aircraft. SpiceJet, Air India Express, and others remain Boeing customers.

But that bet is increasingly looking risky.

"Passengers today are more informed and cautious. A 2024 IATA Global Passenger Survey shows 72% of flyers now consider aircraft type and safety history before booking. That’s up from 54% just three years ago," says Dr. Vandana Singh, Chairperson, Aviation Cargo, Federation of Aviation Industry in India.

Harish Bijoor, Business and Brand-strategy specialist and Founder, Harish Bijoor Consults Inc, calls it “a severe brand turbulence” for Boeing. “Trust, once lost, is difficult to regain. Boeing must lead with transparency —publish a white paper, invite independent audits, and show scientific rigor in addressing failures,” he said.

It’s no longer just Boeing under fire. Indian airlines flying its aircraft are now caught in a reputational crosswind.

Lloyd Mathias, brand strategist and angel investor, warns: “Passengers don’t fly Boeing or Airbus. They fly Vistara, Indigo, Air India. If there’s a problem with the aircraft, the airline owns that in the public mind. Brands are indirectly inheriting Boeing’s trust deficit.”

To pre-empt fallout, Air India has started culling some flights and reviewing its fleet strategy. But this is a stopgap solution. Leasing capacity from other airlines is neither scalable nor economical.

The duopoly of Boeing and Airbus leaves little room for alternatives, say experts, and Airbus itself is facing massive backlogs, with waitlists extending into the 2030s.

"Boeing and Airbus maintain a near-duopoly in the global aviation market, together accounting for close to 80% of total market share. Of the two, Boeing has traditionally held a marginal edge, supported by a ten-year order backlog valued at approximately US$500 billion. However, in recent years, Boeing has been steadily losing ground to Airbus, owing to a combination of setbacks," highlights Samit Sinha, Partner, Alchemist Brand Consulting.

A Bigger Price Than Profits

Beyond airline economics and brand optics, Boeing’s credibility collapse has real-world implications. If passengers avoid Boeing-operated flights, airline revenues will fall. Tourism could dip. Insurance premiums are rising. Foreign investors may hesitate to back Indian aviation stories tied too closely to Boeing. Regulators may step in. The Ministry of Civil Aviation and DGCA will be under pressure to issue clearer advisories or even consider independent safety audits.

Ravi Gosain, President of the Indian Association of Tour Operators (IATO), says, “This isn’t just a Boeing story anymore. It’s about trust in the skies. If people don’t feel safe flying, tourism stalls, and business travel takes a hit. The ripple effect is massive.”

Experts agree: this is Boeing’s moment of reckoning.

"The public doesn’t just want reassurances—they want to see change," says Dr. Singh. "That means more than CEO statements or PR campaigns. It means factory-level quality overhauls, independent safety reviews, whistleblower protection, and full collaboration with regulators."

Mathias adds, “Boeing has serious internal problems: labor unrest, regulatory scrutiny, class action suits. If it can’t show a clean turnaround on quality and transparency, its market position may be damaged permanently.”

The facts speak for themselves: if Boeing continues to be disproportionately linked to safety incidents, it could prove disastrous—not just for the company, but also for the reputation of airlines that operate its aircraft, point out Sinha. Boeing’s top priority must be to get its house in order, addressing internal issues with urgency and transparency.

Equally important is the need for strategic media management. In recent months, whistleblowers have amplified their concerns through global media, casting a long shadow over Boeing’s credibility. The widely viewed Netflix documentary “Downfall: The Case Against Boeing” further intensified negative public sentiment, dealing another blow to the brand.

"Rebuilding trust—with both airlines and the flying public—will require immediate, visible, and sustained action. Boeing must not only resolve its quality control failures but also launch a credible, proactive PR campaign to demonstrate accountability, transparency, and commitment to safety," he adds.

Not all is lost. Boeing still holds deep technical expertise, a strong delivery pipeline, and immense global clout. The U.S. government, aware of its economic and strategic importance, is unlikely to let it collapse. But market forces have shifted. Flyers today are vocal, data-driven, and empowered.

"Boeing's situation is a cautionary tale about the cost of compromised ethics and safety," says Gosain. "Until Boeing regains the world’s trust, this dark cloud won’t lift—not just over the company, but the entire aviation ecosystem that relies on it.”

As India flies into its most ambitious decade of aviation growth, the skies may be busier—but if Boeing doesn’t rebuild trust, they may also be clouded with doubt.

First Published on Jul 3, 2025 8:09 AM

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