- Boeing is a 'too big to fail' corporation with a significant source of revenue coming from the government. 40% in 2024¹, billions of dollars of public funds! Just a bit more and it would be mostly state-funded.
- They're the 4th biggest American defense contractor, so they're likely seen as vital for securing state power by many in the government.
- The government is not a good allocator of funds, free market competition works a lot better for creating the best product.
Using Ockham's razor, here's my guess what happened: To get in this position in the first place, there will have been a fair bit of lobbying and "greasing the wheels" involved. Boeing eventually found themselves in a position where they got government contracts, no matter what. Leadership got complacent, they didn't really compete anymore because they didn't have to. This was when Musk came in and disrupted the space industry. But at that point, company culture was likely already too far down the drain for quick fixes. The situation would already be much worse for their space division, if not for the fact that they have such good relations with NASA and the government. NASA basically covered for them and played down the seriousness of the issues for weeks. And even now, they're not having SpaceX rescue the astronauts immediately, which would be even more embarrassing for Boeing. Instead they're bringing them back together with the already planned SpaceX Crew-9 flight next year. Boeing keeps getting away with black eyes, there aren't enough consequences despite all the serious issues.
¹ https://www.seattletimes.com/business/boeing-aerospace/why-u...