Boeing 737 Max Groundings and Safety Concerns (2019)

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    Justice Dept. Says Boeing Violated 2021 Settlement Over Max Plane

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    The department said the company had failed to design and enforce an ethics program to prevent violation of U.S. fraud laws.The Department of Justice said on Tuesday that Boeing was in violation of a 2021 settlement related to problems with the company’s 737 Max model that led to two deadly plane crashes in 2018 and 2019.In a letter to a federal judge, the department said that Boeing had failed to “design, implement and enforce” an ethics program to prevent and detect violations of U.S. fraud laws in the company’s operations. Creating that program was a condition of Boeing’s settlement, which also carried a $2.5 billion penalty.The determination by the Justice Department opens the door to a potential prosecution of a 2021 criminal charge accusing Boeing of conspiracy to defraud the Federal Aviation Administration, though Boeing can contest Tuesday’s decision.In a statement, Boeing said that the company believed that it had honored the terms of the settlement, adding that it was looking forward to the opportunity to respond.“As we do so, we will engage with the department with the utmost transparency, as we have throughout the entire term of the agreement,” Boeing said in its statement.The Justice Department declined to comment. Paul G. Cassell, a lawyer representing families of victims of the fatal plane crashes, said that his clients were planning to meet with the government on May 31 to discuss next steps in the case.When the government reached its settlement with Boeing in January 2021, many families of the crash victims said that the Trump administration had been too lenient on the aircraft manufacturer.“This is a positive first step and, for the families, a long time coming,” Mr. Cassell said. “But we need to see further action from D.O.J. to hold Boeing accountable.”The crashes of the 737 Max 8 planes in Indonesia and Ethiopia killed 346 people, prompting the F.A.A. to ground the entire 737 Max fleet. An investigation found that both crashes involved mistaken triggering of a maneuvering system designed to help avert stalls in flight.In another settlement, the Securities and Exchange Commission said that Boeing had offered misleading reassurances about the safety of the 737 Max in public statements after both crashes, despite knowing that the maneuvering system had posed a continuing safety issue.The Justice Department reached its finding at a tumultuous time for Boeing, which has faced intense regulatory scrutiny since a door panel blew out of a 737 Max 9 plane during an Alaska Airlines flight from Portland, Ore., in January. In March, the company said its chief executive, Dave Calhoun, would step down at the end of the year, along with Stan Deal, the head of the division that makes planes for airlines and other commercial customers.Mr. Calhoun replaced Dennis A. Muilenburg, who led the company during the 2018 and 2019 crashes. Boeing fired Mr. Muilenburg, whose performance during the crisis angered lawmakers and alienated victims’ families.Mark Walker More

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      Delta Flight Loses Emergency Slide After Takeoff From J.F.K.

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      The plane had taken off from Kennedy International Airport when crew members noticed problems near its right wing, Delta said. What became of the slide is unknown.A Boeing 767 plane flown by Delta Air Lines lost an emergency slide on Friday, prompting it to return to New York not long after taking off, officials said.The flight, Delta Air Lines 520, had left Kennedy International Airport in New York and was headed to Los Angeles when its crew discovered an issue related to the aircraft’s right wing emergency exit slide. Crew members also detected an unusual sound near the wing, Delta Air Lines said.Pilots declared an emergency to air traffic controllers and the flight returned to Kennedy and landed safely, the airline said.After the plane landed, it became apparent that the aircraft’s emergency slide had “separated” from the plane, Delta Air Lines said. The plane was removed from service and the airline said it would “thoroughly evaluate the aircraft.”“Delta flight crews enacted their extensive training and followed procedures to return to J.F.K.,” the company said in a statement, adding that it would “fully cooperate” with retrieval efforts and investigations.It was not clear on Saturday what caused the slide to detach or where it had fallen.The Federal Aviation Administration said on Friday that it would investigate what happened.The flight, which had been scheduled to take off at 7:15 a.m., returned to the airport at 8:35 a.m. after its crew reported “a vibration,” the F.A.A. said in a statement. The 176 passengers disembarked and traveled to Los Angeles on a different plane.Slides have previously fallen from planes while midair. In July, an emergency slide from a United Airlines-operated plane crashed into a home near O’Hare Airport in Chicago. In 2019, a slide from a Delta plane fell into a yard in Massachusetts.A spokesman for Boeing referred inquiries about the plane that lost its slide on Friday to Delta Air Lines. That plane, a version of the Boeing 767, was manufactured in 1990.With travel shut down in 2020, American Airlines announced at the time that it had moved forward with plans to retire its 767 fleet.Boeing has also faced heightened scrutiny recently over the manufacturing of its Boeing 737 Max jets. Two crashes in 2018 and 2019 that killed nearly 350 people raised safety concerns about the planes.In January, a fuselage panel tore off an Alaska Airlines flight, exposing passengers to a frightening ordeal as winds whipped through the cabin. Nobody was injured, but the pilots were forced to make an emergency landing, and the F.A.A. grounded some 170 Boeing 737 Max 9 planes as a precaution.Since then, Boeing has said it would make changes to its quality control processes and regulators have pushed the manufacturer to make improvements to safety. More

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      Southwest Quits Four Airports in Cost-Cutting Drive

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      The airline expects fewer deliveries of Boeing planes than before, and cited “significant challenges” in achieving growth plans because of it.Southwest Airlines is ceasing operations at four airports, and reducing flights from others, in an effort to cut costs after its growth plans were curtailed by fewer than expected plane deliveries from Boeing.The airline, which flies only Boeing 737 planes, said on Thursday that delays from the embattled aircraft manufacturer were behind its struggles. Southwest reported a loss of $231 million for the first quarter, worse than analysts expected, sending its share price down 10 percent in early trading.To cut costs because of its curtailed growth plans, Southwest said it would cease operations at four airports from early August: Bellingham International Airport in Washington State, Cozumel International Airport, George Bush Intercontinental Airport in Houston, and Syracuse Hancock International Airport. It would also “significantly restructure” its flights from other airports, most notably by reducing flights at Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport.The airline’s woes were another ripple effect of the incident on Jan. 5, when a panel of a Boeing 737 Max 9 jet blew out midair during an Alaska Airlines flight. The event led to the temporary grounding of the popular jet model and a slowdown in production as Boeing has faced increased regulatory scrutiny over its quality control.Southwest said it expected to get 20 new Boeing jets this year, down from the 46 it had previously anticipated. The timing of the deliveries depends on the Federal Aviation Administration, which has capped Boeing’s production while it gets quality issues under control.“The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025,” Southwest’s chief executive, Bob Jordan, said in a statement.The airline said it would limit hiring and end the year with 2,000 fewer employees. It also said it planned to put fewer planes out of service than it previously planned.On Wednesday, Boeing reported a $355 million loss for the first quarter, a steep setback that was nonetheless less than analysts expected.Demand for travel remains robust, and while other airlines are trying to manage the production slowdown at Boeing, Southwest appears more adversely affected than its rivals, many of which also buy planes from Airbus.American Airlines reported a quarterly loss of $312 million on Thursday, but provided a better-than-expected forecast for earnings in the current quarter and maintained its growth target for the year.Alaska Airlines and United Airlines recently reported narrower losses than expected in the first three months of the year, and said that they would have reported profits if the Boeing 737 Max 9 had not been grounded. Delta Air Lines was the only major airline to report a profit in the first quarter. More

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      You Don’t Have to Freak Out About Boeing Planes

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      “Ah, it’s a Boeing Max,” I exclaimed to my travel companions after we boarded our plane a few weeks ago. I looked to see if we were seated next to a hidden door plug panel like the one that blew out on Alaska Airlines Flight 1282 in January. We weren’t, but joining a trend on social media, we cracked a few jokes at Boeing’s expense: “Maybe they can charge extra, saying it’s potentially an even bigger window seat.”The Federal Aviation Administration recently informed the passengers on that ill-fated Alaska Airlines flight that they may have been crime victims. The agency hasn’t explained why, but Boeing has told the Senate that it cannot find documentation of exactly how the door plug was removed and reinstalled, even though the company acknowledged it is supposed to have kept such records. Facing all this, the company announced last week that it was replacing its chief executive. But the bad news wasn’t over: On Thursday, a New York Times investigation reported a disturbing pattern of sloppy safety procedures and dangerous cost-cutting. One expert who had spent more than a decade at Boeing told The Times, “The theme is shortcuts everywhere — not doing the job right.”Is it any wonder that some travelers are trying to avoid Boeing planes? Kayak, the travel booking site, noticed an uptick in the number of people trying to weed them out; it recently made that search filter more prominent and even added an option to specifically avoid certain models.Boeing’s problems, great as they are, are just one reason that consumers might be wary of taking flight. United Airlines now also faces scrutiny for a series of safety incidents, although many experts say the issues there do not appear to be systemic. The biggest danger of all may be understaffed air traffic controllers and overstuffed runways, which lead to far too many near misses.Personally, I am not worried about flying and other than cracking some ill-advised jokes, I have not changed my behavior. That’s why I hadn’t bothered to check whether I’d be flying on a Boeing Max, or any type of Boeing plane, until after I boarded.The trajectory of Boeing as a corporation, however, is another matter. It’s going to take a lot more than a shuffle at the top to fix that company’s problems. But the fact that Boeing managed to cut as many corners as it did is testament to the layers and layers of checks, redundancies and training that have been built into the aviation industry. Aviation safety is so robust because we made it so.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Boeing Subject of Criminal Inquiry by DOJ

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      The investigation is tied to an incident on an Alaska Airlines flight in early January. Boeing also told a Senate panel that it cannot find a record of the work done on the Alaska plane.The Justice Department has begun a criminal investigation into Boeing after a panel on one of the company’s planes blew out on an Alaska Airlines flight in early January, a person familiar with the matter said.The airline said it was cooperating with the inquiry. “In an event like this, it’s normal for the D.O.J. to be conducting an investigation,” Alaska Airlines said in a statement. “We are fully cooperating and do not believe we are a target of the investigation.” Boeing had no comment.On Jan. 5, a panel on a Boeing 737 Max 9 jet operated by Alaska Airlines blew out in midair, exposing passengers to the outside air thousands of feet above ground. There were no serious injuries resulting from that incident, but it could have been catastrophic had the panel blown out minutes later, at a higher altitude.The panel is known as a “door plug” and is used to cover a gap left by an unneeded exit door. A preliminary investigation by the National Transportation Safety Board suggested that the plane may have left Boeing’s factory without the plug bolted down.The criminal investigation was first reported by The Wall Street Journal.The Justice Department has previously said it was reviewing a 2021 settlement of a federal criminal charge against the company, which stemmed from two fatal crashes aboard its 737 Max 8 plane. Under that agreement, Boeing committed to paying more than $2.5 billion, most of it in the form of compensation to its customers. The Justice Department agreed to drop the charge accusing Boeing of defrauding the Federal Aviation Administration by withholding information relevant to its approval of the Max. It was not immediately clear if the criminal investigation was related to the review of the 2021 settlement or a separate inquiry.The deal was criticized for being too lenient on Boeing and for having been reached without consulting the families of the 346 people killed in those crashes. The first occurred in Indonesia in late 2018. After the second in Ethiopia in early 2019, the Max was banned from flying globally for 20 months. The plane resumed service in late 2020 and has since been used in several million flights, mostly without incident — until the Alaska Airlines flight on Jan. 5.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Boeing Faces Justice Dept. Review Over Max 9 Incident

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      The department is looking into whether the blowout of a door panel in January violated a 2021 settlement after two fatal plane crashes.The Justice Department is reviewing whether an early January incident in which a part of a Boeing plane blew out in midflight violated a 2021 agreement to settle a criminal charge against the company, according to a person familiar with the review.Boeing agreed to pay more than $2.5 billion to settle the charge, which stemmed from two fatal crashes of its 737 Max 8 planes. The deal, reached in the final weeks of the Trump administration, was criticized at the time as being too lenient on the company.Under the terms, Boeing agreed to compensate the families of the crash victims as well as the airlines affected by the grounding of the planes. The Justice Department agreed to drop a criminal charge that was based on the actions of two employees who had withheld information from the F.A.A.Last month, a panel in the fuselage of a larger Max 9 blew out at an altitude of 16,000 feet shortly after takeoff from Portland, Ore., exposing passengers to deafening wind. There were no serious injuries, but the incident could have been catastrophic had it occurred minutes later, at a higher altitude. The panel is known as a “door plug,” which is used to cover a gap left by an unneeded exit door.The Justice Department review was reported earlier by Bloomberg.The episode in January reignited the intense scrutiny and criticism that Boeing faced after crashes in Indonesia in late 2018 and Ethiopia in early 2019 killed a combined 346 people. The Max 8 and Max 9 were banned from flying globally days after the second crash. Since the jetliners started flying again in late 2020, they have carried out several million flights worldwide.The weight of the crisis appeared to be lifting before the January incident. A preliminary report from the National Transportation Safety Board suggested that the plane in that episode may have left Boeing’s factory without bolts needed to secure the panel. The Federal Aviation Administration immediately grounded nearly 200 Max 9 jets in the United States, pending inspections. Flights using the plane have since resumed.The F.A.A. also increased inspections of the Washington State factory where Boeing makes the Max. On Wednesday, the agency gave the company 90 days to put together a plan to improve quality control.“Boeing must commit to real and profound improvements,” the F.A.A.’s administrator, Mike Whitaker, said in a statement announcing the deadline. “Making foundational change will require a sustained effort from Boeing’s leadership, and we are going to hold them accountable every step of the way, with mutually understood milestones and expectations.”Earlier in the week, a group of F.A.A. experts released a long-awaited report stemming from the Max crashes, and it found that Boeing’s safety culture was still lacking, despite improvements in recent years. More

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      What Should Boeing Do to Fix its Longstanding Problems?

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      DealBook asked experts in company culture, aviation, and leadership for actions the manufacturer could take to restore public trust.As far as signs of trouble in a company go, a hole blowing through the wall of one of its airplanes at 16,000 feet is not subtle.So it was not a surprise that the Boeing chief executive, Dave Calhoun, spent most of the company’s fourth-quarter earnings call on Wednesday focused on safety. “We caused the problem, and we understand that,” he said of the Jan. 5 incident.Mr. Calhoun said the company had instituted additional quality controls and paused production for a day to focus on safety and quality. But Boeing’s issues span decades, and some aviation and management experts have long suggested they go deeper than processes, pointing instead to a shift in the company’s culture that put finances ahead of engineering. Fixing that may require more drastic measures.“What Calhoun and his team need to do requires both a leap of faith from the way they’ve been doing business and some kind of viable, credible courage,” said Nancy Koehn, a historian at Harvard Business School who focuses on crisis leadership.DealBook asked experts in company culture, aviation, and management for actions Boeing could take to try and fix its longstanding problems.Design a completely new plane. The 737 Max, the workhorse of the Boeing fleet, was introduced in 1968. “They’ve been putting in new components, but I think they need a whole new aircraft design based on all the lessons learned about aeronautics in the last 60 years,” said Bill George, the former chief executive of Medtronic and an executive fellow at Harvard Business School who has written two case studies on Boeing. “They may have to cut their dividend so the cash doesn’t go out the door and spend the money to design new aircraft,” said Mr. George, who added that Boeing should stop stock buybacks. Mr. Calhoun has said that Boeing would not deliver its next all-new aircraft until the mid-2030s.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Boeing Suspends Financial Outlook as It Focuses on Safety

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      The manufacturer is under pressure to improve quality control after a panel blew off a 737 Max 9 plane during an Alaska Airlines flight this month.Boeing on Wednesday said that it would not provide a full-year financial forecast, the clearest indication yet that the company is trying to assure customers that it is prioritizing safety amid growing concerns about its popular 737 Max jets.Even as it announced its quarterly earnings, the company chose to focus instead on discussing quality control. Boeing is trying to stem the fallout from an incident less than four weeks ago in which a hole blew open on an Alaska Airlines 737 Max 9 plane shortly after takeoff.“While we often use this time of year to share or update our financial and operational objectives, now is not the time for that,” Boeing’s chief executive, Dave Calhoun, wrote in a message to employees. “We will simply focus on every next airplane while doing everything possible to support our customers, follow the lead of our regulator and ensure the highest standard of safety and quality in all that we do.”With the Jan. 5 incident still under investigation by federal officials, Boeing executives had been grappling with how much to emphasize its efforts to improve safety while also reassuring shareholders about its financial performance. Quality concerns have taken on new urgency after news accounts, including a report in The New York Times, that Boeing workers opened and reinstalled the panel that blew off the plane, known as a door plug.The incident terrified passengers and forced the pilots to make an emergency landing in Portland, Ore. It renewed concerns among some aviation experts that Boeing has long focused too much on increasing profits and enriching shareholders through buybacks and dividends and not enough on engineering and safety. Experts raised similar concerns after two accidents on the 737 Max 8 killed nearly 350 people in 2018 and 2019.The effects of the incident on Boeing’s financial performance are not yet known: The results it announced on Wednesday were for the three months that ended Dec. 31.In its earnings release on Wednesday, the company said it was producing 737 Max jets at a rate of 38 per month at the end of the year. It had hoped to increase that rate to 42 per month this year.But the Federal Aviation Administration said last week that it was limiting Boeing’s ability to increase production of all 737 Max planes, including approving any additional assembly lines, until the company proved that it had resolved its quality control issues.The company said Wednesday that it lost $30 million in the fourth quarter, an improvement from a loss of $663 million in the same period a year earlier. Revenue rose to $22 billion, from about $20 billion a year earlier.The National Transportation Safety Board is expected in the coming days to release a preliminary report on the Alaska Airlines incident. More

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      Airlines Hoping for More Boeing Jets Could Be Waiting Awhile

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      The Federal Aviation Administration’s decision to limit Boeing’s production of 737 Max planes could hurt airlines that are struggling to buy enough new aircraft.Boeing hoped 2024 would be the year it would significantly increase production of its popular Max jets. But less than a month into the year, the company is struggling to reassure airline customers that it will still be able to deliver on its promises.That’s because the Federal Aviation Administration said on Wednesday that it would limit the plane maker’s output until it was confident in Boeing’s quality control practices. On Jan. 5, a panel blew off a Boeing 737 Max 9 body shortly after takeoff, terrifying passengers on an Alaska Airlines flight and forcing the pilots to make an emergency landing at Portland International Airport in Oregon. Almost immediately, the F.A.A. grounded some Max 9s.Since then, details have emerged about the jet’s production at Boeing’s facility in Renton, Wash., that have intensified scrutiny of the company’s quality control. Boeing workers opened and then reinstalled the panel about a month before the plane was delivered to Alaska Airlines.The directive is another setback for Boeing, which had been planning to increase production of its Max plane series to more than 500 this year, from about 400 last year. It also planned to add another assembly line at a factory in Everett, Wash., a major Boeing production hub north of Seattle.As part of the F.A.A.’s announcement on Wednesday, it also approved inspection and maintenance procedures for the Max 9. Airlines can return the jets to service once they have followed those instructions. United Airlines said on Thursday that it could resume flying some of those planes as soon as Friday.The move is another potential blow to airlines. Even though demand for flights came roaring back after pandemic lockdowns and travel restrictions eased, the airlines have not been able to take full advantage of that demand. The companies have not been able to buy enough planes or hire enough pilots, flight attendants and other workers they need to operate flights. A surge in the cost of jet fuel after Russia invaded Ukraine also hurt profits.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More