Safety considerations around air travel have come under an unusual amount of recent scrutiny.
But going back a few years, it was in October 2018 and March 2019 when two Boeing (BA) airplanes in a span of only five months had crashed and tragically caused 346 passengers to lose their lives.
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The first of the two catastrophes happened off the coast of Indonesia, while the second occurred in Ethiopia.
These events led to a global grounding of Boeing's 737 Max fleet and an intensive examination of the company's operations.
More recently, in January 2024, a door-like panel on a Boeing 737 Max 9 run by Alaska Airlines (ALK) blew off an airplane shortly after takeoff.
And suddenly, concern about the safety of Boeing's airplanes was back in the news and on the forefronts of travelers' minds.
There have been other recent incidents that worry passengers as well. With these in mind, TheStreet — on the floor of the New York Stock Exchange — conducted an exclusive interview with Scott Powell, president of Skyline Corporate Communications Group, in which he explained his views on travelers, Boeing and a growing "crisis of trust."
What follows are Powell's compelling words on the subject.
Powell explains Boeing's handling of a 'crisis of trust'
The corporate communications expert was asked about Boeing and how it has reacted to and handled some of these negative headlines in the media.
"That's a good question," Powell said. "I think travelers should exercise some caution. Obviously, the incidents as a percentage of the number of flights that occur each day, each week, each month is still very small and it's still the safest way to travel. So the number of incidents, as I said, as a percentage, is really not all that high."
Powell acknowledged that recent episodes with aircraft safety have given him reason to think.
"But there are alarming incidents that have really scared travelers on these aircraft," Powell said. "Personally, I always look at the type of aircraft because I do fly a lot for business. And personally, I do look at the type of aircraft."
"And if I have a choice of flying an Airbus or, you know, a 747, 767, I tend to choose those flight times and those flights," Powell continued. "When I see a 737 Max 8 or Max 9, I do tend to pause a little bit."
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Boeing shares have declined significantly year-to-date
Powell elaborated on ways trust in Boeing has been damaged because of recent events.
"You know, the reality is, it's very unlikely that anything will happen, but it has damaged trust in the flying public," Powell said. "The shares of Boeing between January and March 31 were down, I think, 28%."
Looking from a slightly broader view, on Dec. 15, 2023 Boeing shares closed at their one-year high of $264.27. On April 10, the stock value purchase price closed at $174.63, down 34% in about four months.
"Boeing lost some orders to Airbus," Powell said. "I think it was Japan Air that announced one or two months ago that they were purchasing a whole bunch of Airbus aircraft as opposed to Boeing, which I believe they had typically purchased previously."
Powell discussed how travelers are confronted with feelings of worry about recent events and Boeing's perceived safety concerns.
"So certainly, you know, people are worried," he said. "The risk of anything happening is still very, very small. But still there's the perception there. There's the damage to trust because it's a little bit different from other companies that maybe produce a pen or paper or produce, you know, forks and knives and things like that. They can't really harm you. You know, you might have a little accident with one of those products, but if there's a problem with an airline, it can kill you."
"And so, in my opinion, airlines and other companies that operate products or services that can seriously harm or kill individuals have a duty, in my opinion, to go the extra mile to protect their consumers through high standards of quality control and then also now to rebuild the trust that's really been shattered over the past few years."
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