US sanctions Boeing for sharing information on 737 Max 9 investigation

Boeing is being sanctioned by U.S. investigators for sharing information about a federal probe into a burst door plug that left a gaping hole in a Boeing 737 Max 9.

The National Transportation Safety Board said Thursday that Boeing flagrantly violated the agency's investigative rules and a signed agreement by providing nonpublic investigative information to the media and speculating about possible causes of a Boeing jetliner's door plug blowing off Jan. 5 in Portland, Oregon.

During the incident, a panel blocking a space left for an additional emergency door caused an Alaska Airlines Max 9 to explode. The pilots were able to land safely and there were no injuries.

The NTSB said that during a press briefing Tuesday, a Boeing executive provided reporters with nonpublic investigative information about the Alaska Airlines incident that the agency had not verified or authorized for release .

The agency said Boeing presented the investigation as a search to find the individual responsible for the operation of the door jams, but the NTSB said it was focusing on the probable cause of the accident, without dismissing blame on anyone or assess responsibility.

Boeing said in a statement Thursday that it deeply regretted that some of the statements made at the news conference exceeded the NTSB's role as a source of investigative information.

We apologize to the NTSB and are prepared to answer any questions you may have as the agency continues its investigation, he said.

Shares of Arlington, Virginia-based Boeing Co. rose more than 2% in morning trading.

The NTSB said that given its recent actions, Boeing would not have access to investigative information produced by the agency about the Alaska Airlines incident, but it would maintain its status as a party to the investigation.

The NTSB is unable to fine Boeing because it does not have the authority to enforce the law. Although the agency could have stripped Boeing of its stakeholder status, the NTSB may have deemed it more important to retain Boeing as a stakeholder in the investigation because of the expertise of its employees.

The NTSB said it could subpoena any relevant documents it needs during the investigation. It will also subpoena Boeing to appear at an investigative hearing in Washington, D.C., on Aug. 6 and 7. The agency said that, unlike other parties, Boeing will not be able to question other participants.

The NTSB said it would coordinate with the Justice Department's Fraud Division, providing them with information on Boeing's recent releases of unauthorized investigative information related to the Boeing door plug investigation. 737 Max 9.

In May, the Justice Department told a federal judge that Boeing violated an agreement that allowed the company to avoid criminal prosecution after two fatal crashes involving its 737 Max plane.

After Max planes crashed in 2018 in Indonesia and 2019 in Ethiopia, killing 346 people, the FAA and other regulators grounded the planes worldwide for more than a year and a half.

It is now up to the Justice Department to decide whether to file charges against Boeing. Prosecutors will let the court know by July 7 how they plan to proceed, the ministry said in May.

Boeing has come under intense scrutiny recently. Earlier this month, CEO David Calhoun defended the company’s safety record in a contentious Senate hearing as lawmakers accused him of prioritizing profits over safety, failing to protect whistleblowers and even being overpaid.

There has been pressure on Calhoun to resign immediately, but he has no plans to do so. Calhoun previously announced he would resign by the end of 2024.

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