Boeing Faces Sanctions From NTSB Over Unauthorized Release Of 737 MAX Investigation Details

The National Transportation Safety Board (NTSB) has imposed sanctions on Boeing Co. BA for disclosing non-public details of an ongoing investigation into a 737 MAX mid-air emergency. The NTSB has also referred Boeing’s conduct to the Justice Department.

What Happened: The NTSB stated that Boeing had “blatantly violated” the agency’s investigative regulations by sharing “non-public investigative information to the media” and speculating about potential causes of the Jan. 5 Alaska Airlines door plug blowout, Reuters reported on Thursday.

The NTSB’s action further strains the relationship between Boeing and government agencies, amid the planemaker’s efforts to avoid criminal charges from the U.S. Department of Justice (DOJ) before a July 7 deadline.

Although Boeing will maintain its status as a party to the investigation into the Alaska Airlines incident, it will be denied access to information produced by the NTSB during its probe.

The NTSB also stated that Boeing will not be permitted to question other participants at an investigative hearing scheduled for Aug. 6-7. However, other participants will be allowed to question Boeing.

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The NTSB also revealed that Boeing had breached an agreement with the agency during a media briefing about quality improvements at its commercial airplanes division on Tuesday in Washington state. The agency will subpoena Boeing to appear at the investigative hearing in August and has referred Boeing’s recent conduct to the DOJ.

Why It Matters: This development comes in the wake of Boeing’s insistence on its compliance with a 2021 agreement designed to avoid criminal prosecution after the 737 MAX tragedies that resulted in 346 deaths. The U.S. Justice Department, however, found Boeing’s compliance and ethics program insufficient in May.

Despite prosecutors’ push for criminal charges against Boeing for violating a settlement tied to two deadly crashes, the company’s stock began on a positive note on Monday. The Justice Department has until July 7 to decide on prosecuting the company.

Adding to Boeing’s woes, the Federal Aviation Administration (FAA) issued a new safety directive targeting specific structural issues in 13 Boeing Co's 757-200 airplanes registered in the U.S. due to identified fatigue cracking.

Price Action: Boeing’s stock was trading 0.63% at $179.63 on Thursday during the pre-market after it closed at $178.50 on Wednesday, according to Benzinga Pro.

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Photo Courtesy: Robin Guess On Shutterstock.com

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari