Warren Buffett once said of companies that experience difficulties that the difficulties continue to emerge following their initial problems and headlines. He compared it to turning the light on in the kitchen in the middle of the night. You are going to scare out a great many cockroaches heretofore undetected.
Boeing is now facing an FAA probe on its 787 Dreamliner jets. Heretofore a very safe plane used on international routes, Boeing found parts for this plane were defective. Produced in its South Carolina plant, the parts are now under intense scrutiny. The good news is that Boeing’s new and enhanced safety review uncovered the defects. The bad news is that it will take some time to figure out how the defective parts rolled through without necessary checks. The additional bad news is that the FAA must determine whether to impose streamlined maintenance checks, a process that will ground fleets. Shining the light in areas where that light is a surprise always nets valuable information. The hope for the brand languishes but the deference to safety is progress.