Richard Aboulafia on Troubles at Boeing: ‘I’ve Never Seen Anything Like It’

Troubles at Boeing just keep piling up, along with existential questions about the company's future. Not only is Boeing enormously important to US manufacturing, but it's also a major defense contractor for the US government and a big employer, which means its fortunes are of interest to more than just shareholders. So just how bad are the difficulties facing Boeing at the moment and what is the planemaker planning to do about it? On this episode, we speak to Richard Aboulafia, managing director of AeroDynamic Advisory, about Boeing's history and future. He talks about lesser-known developments at the company, including its recent decision to dissolve its firm-wide strategy unit, and the decisions that go into developing new aircraft. This transcript has been lightly edited for clarity.

Key insights from the pod:
Dismantling of Boeing’s strategy department — 5:09
What’s the mood at Boeing right now? -- 7:32
How has Boeing’s culture changed? — 9:05
Boeing’s decision to develop the 737 MAX - 10:54
The McDonnell Douglas acquisition - 15:25
Developing clean-sheet aircraft - 17:39
Airbus’s dominance of the middle market? - 19:12
How does Boeing catch-up to Airbus — 21:50
What makes a good plane? — 22:49
Worries over Boeing’s defense business — 26:18
Public funding and Airbus and Boeing — 28:59
Why has Embraer been successful? — 31:24
Competition from Comac — 33:34
Culture and resources at the FAA — 37:16
Airline loyalty to planemakers — 41:00
Prices for aircraft right now — 42:20
On Boeing’s future — 43:12