The Federal Aviation Administration (FAA) made headlines on Monday as it announced an investigation into Boeing following revelations of falsified inspection records at a South Carolina plant concerning certain 787 planes. Despite Boeing’s reassurances that the misconduct did not pose an immediate safety risk, the FAA’s decision marks a significant development in the ongoing scrutiny surrounding the aviation giant.
According to Scott Stocker, leader of Boeing’s 787 program, the investigation was sparked when a vigilant worker detected an “irregularity” during a required test of the wing-to-body join and promptly reported it to management.
“After receiving the report, we quickly reviewed the matter and learned that several people had been violating Company policies by not performing a required test, but recording the work as having been completed,” Stocker wrote.
Boeing stock is down about 31% so far in 2024 (High Price on 5/7/24 was just $178.35 compared to High Price on 1/2/24 when it was $258.59), making it one of the worst-performing stocks in the S&P 500. The company is borrowing $10 billion as it burns through cash trying to fix its problems. And ratings agency Fitch says the company’s default risk is inching closer to junk bond territory.
Boeing’s brutal 2024 keeps getting worse.
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