Arnold Barnett, George Eastman Professor of Science and Statistics, MIT Sloan School of Management
From RealClear Markets
Someday, more than a year after its second disastrous crash, the grounded Boeing 737 MAX will return to the skies. But will it be awash in empty seats when it does so? If recent surveys are to be believed, the answer is clearly yes. A December 2019 poll conducted by Bank of America estimated that only 20% of Americans would readily board the relaunched MAX. (This figure excludes the 50% of respondents who had not heard of the MAX controversy, but one assumes that these people rarely if ever fly.). Boeing’s own surveys in December 2019 imply that more than 40% of potential air travelers now plan to steer clear of the MAX. Montana Senator Jon Tester probably spoke for many when he declared that “I would walk before I was to get on a 737 MAX.”
To be sure, discrepancies often arise between what people tell pollsters and what they actually do. But is that likely to occur here? In fact, one can make a plausible case both for and against a large passenger boycott of the revived MAX. It is useful to consider the arguments on both sides, and then to hazard a best guess about what might happen.
The Boeing 787 Dreamliner is a huge innovation. The first new aircraft launched in more than a decade, Boeing uses incredibly advanced manufacturing technology to build a lighter-weight carbon composite plane for improved fuel-efficiency. In addition, the planes include a number of state-of-the-art design features to increase passenger comfort on long-haul flights. Read More »
After a fun and rigorous core semester, it’s finally winter break, but I’m not hitting the slopes or soaking up the sun on a beach somewhere warm. Instead, I signed up to go to Seattle with 17 other MIT Sloan students on a technology career trek. While this may sound like an unusual way to spend our vacation time, it’s actually a great opportunity for MBA students to learn more about the technology industry and what it would be like to work for a tech company.