GUIDELINES

1. The solution needs to be submitted in the form of PDF

by 8th May 2024, 11:59PM IST via Unstop.

2. The number of slides should not exceed 8 excluding the

cover page, appendix and the references.

3. Sources of information must be clearly cited as

plagiarism would be strictly condemned. Also clearly
mention the assumptions made (if any).

4. The file should be named as TeamName_JIC24 and the

introductory page must contain the details of all team
members.

5. Submissions will be evaluated based on viability, clarity,

feasibility of solutions, and structure and flow of the
presentation.

6. In case you have a query, feel free to mail the 180DC

DDUC team at dduc@180dc.org.

7. The decision of the judges shall be final and binding on

all participants.
 INDUSTRY OVERVIEW
The global aircraft manufacturing market is valued at USD 413.51 billion and
is expected to grow at a CAGR of 3.7% during the forecast period, expected
to reach $640 billion by 2033.

The commercial aircraft market, which is a major revenue driver for aircraft
manufacturing companies, is fully dominated by Boeing and Airbus, which
together hold 99% market share. While Airbus secured delivery leadership
for the fifth consecutive year, Boeing faced headwinds due to lingering
challenges from the Boeing 737 MAX grounding and production issues.

Airbus enjoyed a successful year, surpassing its 2022 performance. It set

three new industry records: the highest gross orders of 2,319 jets, the
highest net new orders of 2,094 aircraft, and the highest backlog of 8,598
jets by the end of 2023.

Despite Boeing securing a new company record backlog of 6,216 jets by the
end of last year, it still faced delivery delays due to supply chain disruptions
and ramp-up challenges for the Boeing 737 MAX production.

CASE PROBLEM
Boeing 737 MAX
The Boeing 737 MAX is a popular narrow-body aircraft known for its fuel
efficiency and range. It delivers enhanced efficiency, improved
environmental performance and increased passenger comfort to the single-
aisle market. Incorporating advanced technology winglets and efficient
engines, the 737 MAX offers excellent economics and significant
improvements over its predecessors, reducing fuel use and emissions by 20
percent while producing a 50 percent smaller noise footprint. It is one of the
best & most demanded aircraft in the world. With more than 5,000 orders,
the 737 MAX is the fastest-selling airplane in Boeing’s history.
 CASE PROBLEM
From Highs to Lows: Boeing's Safety Struggles &
737 MAX's Uncertain Future:
An outcry around safety at Boeing started with two deadly crashes within
five months of each other. In December 2018, a Boeing 737 MAX aircraft
crashed in Indonesia, killing 189 passengers and crew, while in March 2019
another airplane of the same model crashed in Ethiopia, killing 157 people.
Boeing 737 MAXs were grounded worldwide for almost two years but were
eventually cleared to fly following revamps in design, software and crew
training. Five years later, the repeated safety incidents with Boeing are
sparking renewed concern.

Renewed Concerns and a Close Call:

On January 5th, 2024, an Alaska Airlines Boeing 737 MAX-9 flying from
Portland to Ontario, California was forced to make an emergency landing in
Oregon after a door plug blew off mid-flight, causing rapid decompression,
putting passengers at risk of oxygen deprivation. It was a close call. No one
was sitting next to the faulty door and the pilots were able to land the plane
with no passengers harmed but the incident opened a pandora’s box of
questions and mistrust over the safety of Boeing aircraft.

A String of Incidents:
Within a couple of months, Boeing's reputation was further tarnished by a
series of unsettling occurrences. On March 4th, 2024, a United Airlines 737-
900 flying from Texas to Florida was forced to make an emergency landing
after flames erupted from one of the plane's engines. Just eleven days later,
on March 15th, 2024, another Boeing aircraft, a 737-800, landed in Oregon
missing a crucial panel from its underbelly. These detrimental incidents
painted a troubling picture of potential systemic issues within Boeing's
manufacturing and quality control processes.
 CASE PROBLEM
Consequences
The U.S. Federal Aviation Administration (FAA) temporarily grounded most
of Boeing’s 737 MAX-9 aircraft following the Alaska Airlines incident. The
FAA eventually cleared the aircraft to fly again but with some restrictions.
The agency prohibited Boeing from expanding production of its MAX jets or
approving additional production lines for the aircraft. The FAA also audited
the production process for the aircraft, finding multiple instances where the
companies allegedly failed to comply with manufacturing quality-control
requirements.

This caused significant financial losses, production stoppages and

reputational damage. Current delays in aircraft deliveries and ongoing supply
issues already have operational and financial impacts on the aviation system
but they will be much worse if the aircrafts are grounded again. Furthermore,
incomplete certification documents and FAA audits revealing non-compliance
with manufacturing standards are still a major concern. This also led to a
change in the leadership of the company with the current CEO stepping down
at the end of the year.

These troubles will affect the price of the tickets and the fleet expansion
plans. Route development is going to be limited due to aircraft delays. There
is lack of market confidence towards Boeing and significant shareholder ‘s
concern considering that the stock price is going down very fast.
This resulted in Boeing’s arch rival, Airbus, clinching orders for 65 jets from
two of Boeing's key Asian customers, Japan Airlines and Korean Air. This has
allowed Airbus to grow its foothold on a part of its rival's turf. Boeing’s
issues regarding delayed deliveries, impacted financial targets and leadership
changes within the company has made it harder for them to catch up to their
European rival. 737 MAX, considering it is still the world’s best-selling
aircraft type, has more than 4,000 orders and Airbus does not have capacity
to fill up eventual upsurge in orders.

The ongoing regulatory scrutiny is jeopardizing the company's

future financial performance and market position.
 FINANCIAL IMPACT
Summary Financial Results (FY 23 & FY 24)

Commercial Airplanes Data

▪ Boeing’s Commercial Airplanes first quarter revenue of $4.7 billion and

operating margin of 24.6 % primarily reflect lower 737 deliveries.
▪ Boeing booked 125 net orders for commercial airplanes, including 85, 737-
10 airplanes for American Airlines and 28, 777X airplanes for customers
including Ethiopian Airlines.
▪ Boeing delivered 83 commercial airplanes during the quarter and backlog
included over 5,600 airplanes valued at $448 billion.

Note: Bold characters signify airplane names.

 KEY DELIVERABLES
1. With leadership changes, financial losses and a
shrinking market share, Boeing is at a crossroad.
Establish a comprehensive crisis management plan to
address immediate challenges arising from
recent incidents.

2. Recommend actions to strengthen Corporate

Governance and ensure stability within the company.

3. How can Boeing strategically revamp its business

strategy to outcompete Airbus, retain orders and
regain the lost market share?

4. Boeing maintains a presence in both Defense and

Space Tech-Exploration. With the ever-evolving market
landscape, Boeing needs to make a strategic decision;
Should it continue its diversified portfolio alongside its
commercial jets or should it prioritize one sector for
further investment?