How do we solve problems like Boeing’s?

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It has taken Boeing decades to earn a reputation as one of the world’s most reliable companies. In less than six years, it all came to naught, leaving this once-great American company facing an uncertain future.

After a series of in-flight disasters and the company’s declining quality standards, regulators, airlines, passengers and even Boeing’s own employees are effectively revolting. Investors aren’t too excited either: Boeing’s stock (BA) is down 27% this year, making it the second-worst performer in the S&P 500, behind Tesla.

The latest headache for Boeing occurred on Monday when a 787 Dreamliner flying from Australia to New Zealand suddenly crashed mid-flight, injuring several passengers. It’s unclear what responsibility, if any, Boeing bears in this regard – the company said it is gathering information about the cause of the problem. But at a time when Boeing is under federal investigation over the Jan. 5 door jam incident, the passengers’ accounts were not a happy one.

Brian Jokat, a passenger on a LATAM flight on Monday, told CNN he was jolted awake when the plane suddenly crashed and passengers were thrown into the cabin ceiling. (In another interview wall street journalhe said: “You know in The Exorcist, when the girl flies out of bed and hits the ceiling? Exactly that scene. ” )

As with any other company, now is the time to call an attorney and start working on a sale or bankruptcy. Over the past six years, Boeing has been found guilty of two fatal crashes that killed 346 people, cost tens of billions of dollars, paid billions of dollars in fines and settlements, and became known for recurring quality control issues. headline News.

But Boeing is not any other company.

And it even has few regulators to contend with. The FAA is severely underfunded and relies in part on Boeing to regulate itself. In a surprising move, the agency discovered this week that Boeing failed half of its audits of its production facilities. (The Federal Aviation Administration has directed the planemaker to submit a plan to address the production issues by the end of May.)

Boeing said in a statement that it was working to resolve the issues highlighted by the FAA.

Boeing said: “Based on the FAA’s audit, our quality requirements and the recent expert panel report, we will continue to immediately implement changes and develop a comprehensive action plan to enhance safety and quality and build our customers and their Passenger confidence.” in a statement. “We are focused on taking transparent, significant, proven action every step of the way.”

The company is often called a duopoly rather than a monopoly because it is technically competing globally with European rival Airbus. But this isn’t real competition. Boeing’s main customers are airlines, and airlines are unlikely to suddenly switch to Airbus if they are unhappy with Boeing. Pilots are certified in one or more of these, so once you make your choice, you’re pretty much stuck with it.

Given Boeing’s unique importance in the U.S. aerospace industry, this is the definition of “too big to fail.” Boeing is immune to most of the forces, such as consumer choice, that other companies must contend with in order to stay in business. We the people cannot escape it if we want to.

So, how do we solve problems like Boeing’s?

“If you ask me, the first thing Boeing needs to do to gain trust is fire its entire senior executive team,” Gard Aron, a professor at the Wharton School at the University of Pennsylvania, told me on Tuesday. “I know it’s not going to happen, but … no one with a C in front of their title is responsible for what we’re seeing now.”

Aron doesn’t expect Boeing’s board of directors to perform in this regard.

Another idea occasionally discussed: nationalizing Boeing.

Matt Stoller, research director of the progressive think tank the American Economic Freedom Project, made this argument in a January newsletter, arguing that the government has a history of nationalizing utilities, railroads and aerospace companies.

After all, he noted, about 40% of Boeing’s revenue comes from government contracts, with much of the remainder coming from aircraft orders that U.S. officials often tout abroad.

“Boeing is a state-backed national champion,” Storer wrote. “The private company fairy tale will only hinder the restoration of this once great organization.”

Of course, Boeing isn’t in the kind of financial trouble that usually precedes a government takeover (also thanks to years of government support, but still). Nationalization may seem politically interesting, but in practice it is unlikely.

“There are really no good options in the short or medium term,” Aron said.

The bigger concern for him is what happens when these one-time horrific events — door jams falling off mid-flight, etc. — start to become more frequent.

Considering how many businesses around the world rely on Boeing aircraft, “this could really be as bad as the financial crisis.”

He added: “It’s not that I think there’s a risk of all these planes falling out of the sky tomorrow… [But] As we start to see these things happen more and more frequently, I think it shifts from “event risk” to “continuous risk,” with potentially devastating consequences.