Boeing, one of America’s biggest manufacturers, is facing production, quality, and safety problems that have worsened after a mid-flight incident involving a787 Dreamliner. While it is uncertain if Boeing is at fault, the incident comes at a difficult time for the company, with damage to its already-battered reputation. Economists warn that Boeing’s crisis could lead to more expensive airfares and weaker economic growth. As a major player in aircraft production, Boeing’s issues could result in delays in deliveries, reducing the number of planes available and impacting the economy. Additionally, fewer orders for Boeing jets have led to a decrease in new orders for durable goods, as well as potential increases in airfares. Despite the challenges, Boeing is unlikely to reduce hiring as it addresses its problems. However, higher labor costs could deepen the company’s financial troubles and harm its stock price. The New York Fed has previously estimated that a production shutdown by Boeing could have significant effects on the economy. Weaker demand for Boeing planes could also benefit its rival, Airbus, which has already surpassed Boeing as the world’s largest aircraft manufacturer.
