Equities
DOJ probes Boeing after a 737 MAX door incident, scrutinizing adherence to a 2021 settlement amid a 24% stock drop.
By Jack Wilson
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The U.S. Department of Justice (DOJ) has initiated a criminal investigation into a significant incident involving a Boeing 737 MAX plane operated by Alaska Airlines. During a flight on January 5, a door-sized panel was sucked out of the aircraft at 15,000 feet, leading to cabin depressurization and the deployment of oxygen masks. The flight, which was en route from Portland, Oregon, to Ontario, California, made a successful emergency landing at Portland International Airport without any reported injuries. This investigation by the DOJ aims to determine Boeing's compliance with a 2021 settlement following two fatal 737 MAX crashes in 2018 and 2019.
Following the incident, Boeing has faced increased scrutiny. The company has been trying to reassure the public and its customers of the safety of its aircraft. However, Boeing's stock has experienced a downturn, falling 0.9% in premarket trading to $196.64, marking a 24% decrease since the beginning of the year. The DOJ's investigation will also review whether Boeing adhered to the terms of a previous $2.5 billion settlement, which resolved a federal probe into the safety of its 737 Max aircraft after the two deadly crashes that collectively resulted in 346 fatalities.
The National Transportation Safety Board (NTSB) has expressed concerns over Boeing's cooperation with the investigation, particularly regarding the provision of documentation and employee interviews. Boeing has stated that it is fully cooperating with the investigation, but has also noted that certain requested documentation does not exist. This situation has raised questions about Boeing's quality assurance and safety management systems. The Federal Aviation Administration (FAA) has given Boeing 90 days to address quality-control issues highlighted by the agency and a panel of industry and government experts.
This incident is part of a series of recent non-fatal airline accidents, including pilots falling asleep midflight on an Indonesian aircraft and a United Airlines flight veering off a taxiway in Houston. These incidents have brought aviation safety practices into the spotlight, emphasizing the importance of stringent quality control and oversight in the industry. The DOJ's investigation into the Boeing incident will likely have broader implications for aviation safety standards and regulatory oversight.
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