Boeing: Too Big To Jail

Investment Analysis Clubs Macro Economic Trends and Risks
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{{ The Justice Department last month accused Boeing of violating a pre-existing corporate probation for a fraud conspiracy charge related to the 2018 and 2019 crashes, after a panel of another Boeing plane flew off midflight. Prosecutors now have to decide if they should pursue the charge against Boeing and try to brand the company a felon, which could open the struggling aerospace giant to more financial penalties and complicate its ability to sell defense weapons and space vehicles to the U.S. government. }}

https://www.wsj.com/business/airlines/doj-has-a-second-chance-to-prosecute-boeing-over-737-max-will-it-take-its-shot-b5f5638f?mod=hp_listb_pos2

Also a second WSJ article on the difficultly in finding a competent CEO willing to come aboard this tar baby and fix the damage inflicted by a succession of Jack Welch-trained MBAs.

intercst

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An extraordinary amount of free speech may be needed this time round:

[New whistleblower] Mohawk’s complaint states that during an August 2023 meeting, the head of Boeing‘s Material Review Board for the 737 MAX program “reiterated his order for everyone to cancel and delete NCRs [nonconformance reports], and not to keep a written record of nonconforming parts.” When he filed an internal company complaint through Boeing’s “Speak Up” process, his complaint about this management pressure was passed for assessment to the managers he’d complained about, Mohawk alleges.

In addition to Mohawk’s claims, the Senate subcommittee document reiterates similar complaints by former Boeing quality manager Merle Meyers, who left Boeing last year and in April shared allegations with The New York Times similar to those from Mohawk. The subcommittee memo adds a previously unpublicized internal form Meyers says was used to illegally authorize the return of nonconforming parts to the main assembly line to be installed on airplanes.

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I’m sure management will dismiss all the whistleblowers as “disgruntled employees”. Maybe, if we get a “pro-growth” regime in DC, the whistleblower protecton laws will be repealed, so the “JCs” are not “burdened”.

Steve

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