Boeing Knew of Four MD-11 Bearing Failures Before Fatal UPS Crash
Boeing knew since at least 2011 that an engine-to-wing bearing on MD-11 aircraft had failed four times on three planes but issued only a non-mandatory service bulletin, and the FAA did not require repairs. Cracked bearings were implicated in the November 4 UPS MD-11 crash near Louisville that killed 15 and led to grounding all MD-11s and 10 DC-10s.
1. NTSB Reveals Boeing Knew of MD-11 Engine-Mount Part Failures Since 2011
The National Transportation Safety Board report released this week confirms that Boeing first issued a service bulletin in 2011 warning operators about potential cracks in the bearing assemblies that secure engines to wing pylons on MD-11 freighters. Between 2011 and the UPS DC-10-derived MD-11 crash in Louisville last November, the same part had failed on four occasions across three separate aircraft. Boeing concluded at the time that the issue did not constitute a safety-of-flight condition and did not pursue an airworthiness directive with the FAA. Regular maintenance inspections failed to detect fatigue cracks that ultimately led to left-engine separation shortly after takeoff on November 4, resulting in the deaths of three crew members and 12 people on the ground.
2. Q4 Delivery Growth Signals Improved Production Execution
In the fourth quarter of 2025, Boeing delivered 160 commercial jets, bringing its full-year total to 600—the highest annual tally since 2018. The lion’s share of these deliveries came from the 737 family, which accounted for 117 jets in the final quarter. Boeing’s Defense, Space & Security division also posted robust numbers, delivering 37 military aircraft, including Apache and Chinook helicopters as well as KC-46 tankers. Management attributes the uptick to enhanced production discipline, tightened quality controls and a stabilized supply chain, positioning the company to generate positive free cash flow in 2026.
3. Tentative Settlement in 737 MAX Crash Lawsuits
Boeing has reached a tentative agreement with the family of a Canadian passenger who lost six relatives in the October 2019 Ethiopian Airlines Flight 302 crash. The settlement covers wrongful-death claims related to the runaway stabilizer system that investigators found defective. While terms remain confidential pending court approval, the deal follows separate agreements in U.S. litigation earlier this year and helps resolve a significant portion of the outstanding liability tied to the MAX-related tragedies.
4. 737 MAX Production Ramp and Backlog Health
Boeing is on track to increase its 737 MAX production rate to 84 aircraft per month by mid-2026, up from 38 units per month in early 2024. The order book for the MAX series stands at over 6,000 jets, representing nearly a decade’s worth of output at the target rate. Leased aircraft account for roughly 20% of the backlog, with strong commitments from major lessors and airline groups. This production acceleration underscores robust global demand and provides a multi-year revenue visibility that investors and rating agencies view as a key support for Boeing’s credit metrics.