Boeing’s recent troubles, including the temporary ban on its 737 Max 9 variant, can be traced back to a mega-merger with McDonnell Douglas in 1997. The merger led to a clash of cultures, as McDonnell Douglas prioritized affordability and shareholder value over quality and safety, which had been the focus at Boeing. The new management team, which included the CEO of McDonnell Douglas and a chairman from General Electric, shifted the company’s priorities and even outsourced critical operations. The result was a departure from Boeing’s traditional “engineers’ company” ethos, and ultimately, the 737 Max crashes in 2018. Boeing’s merger decision continues to haunt the company as it struggles to regain trust in its aircraft.
https://finshots.in/archive/did-a-1997-merger-ruin-boeing/