Boeing Co. BA has been cautioned by the National Transportation Safety Board that it could lose its status as a party to the investigation into a 737 MAX mid-air blowout. This warning comes after Boeing allegedly violated regulations by disclosing non-public information to the media and speculating about potential causes.
What Happened: The NTSB, in a letter to Boeing CEO Dave Calhoun, stated that the company’s actions could lead to it being removed as a party to the investigation, Reuters reported on Thursday.
The NTSB’s Office of Aviation Safety Director Timothy LeBaron highlighted that Boeing’s release of non-public investigative information and unsubstantiated speculations about the Jan. 5 door plug blowout, during a factory tour, violated regulations.
LeBaron warned that further infractions could result in Boeing losing its party status, which would prevent the company from participating in the investigation. The NTSB had previously warned Boeing about similar comments on Mar. 13.
“This disregard of the federal regulations and rules governing NTSB investigations cannot be tolerated,” LeBaron wrote.
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Boeing has declined to comment directly on the letter, instead referring to an earlier apology it issued after the NTSB sanctioned the company for its remarks to the media, according to the report.
Boeing will no longer have access to information produced during the NTSB’s investigation, which involves the mid-air blowout of an Alaska Airlines 737 MAX 9 door plug with four missing bolts. Unlike other parties, Boeing will not be allowed to ask questions of other participants at a hearing on Aug. 6-7.
Why It Matters: This latest development adds to a series of challenges for Boeing. The NTSB’s sanctions come amid ongoing scrutiny of Boeing’s safety practices. The company is also dealing with allegations from a whistleblower about unsafe manufacturing of its 787 Dreamliner, which could have severe consequences.
Furthermore, Boeing is facing additional pressure from the Federal Aviation Administration, which recently issued a new airworthiness directive for Boeing 757-200 planes due to concerns over potential structural cracking. This directive aims to address fatigue cracking issues that could pose in-flight risks.
Adding to the complexity, Boeing has had to refute claims that two NASA astronauts were stranded on its Starliner spacecraft due to delays in its return flight from the International Space Station. The company has maintained that the spacecraft is functioning well despite the postponement.
Price Action: Boeing Co’s stock closed at $182.51 on Thursday, marking a 2.25% increase. In after-hours trading, the stock rose 0.17%. Year to date, Boeing’s stock has decreased by 27.51%, according to data from Benzinga Pro.
Image Via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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