New Boeing, $BA, whistleblower to testify at April 17 Senate hearing

The Federal Aviation Administration (FAA) is looking into claims made by a whistleblower at Boeing, who alleges that the company disregarded safety and quality concerns during the production of its 787 and 777 jets, according to an agency spokesperson on Tuesday.

Boeing has been dealing with a significant safety crisis since a mid-air panel blowout on a 737 MAX plane on January 5th, damaging its reputation. The company has undergone management changes, faced production restrictions from U.S. regulators, and experienced a 50% drop in deliveries in March.

The allegations from Boeing engineer Sam Salehpour relate to his work on the 787 and 777 jets. Salehpour claims he faced retaliation, including threats and exclusion from meetings, after he raised engineering issues affecting the structural integrity of the jets. He also alleges that Boeing used shortcuts to expedite the 787 assembly process, according to his attorneys.

Boeing had paused deliveries of the 787 widebody jet for over a year until August 2022 as the FAA investigated quality problems and manufacturing flaws. In 2021, Boeing acknowledged issues with shims and skin-flatness specifications on some 787 airplanes.

Boeing responded to the allegations, expressing full confidence in the 787 Dreamliner and stating that the claims were inaccurate, not reflecting the comprehensive efforts Boeing had made to ensure the quality and long-term safety of the aircraft.

Salehpour highlighted the shortcuts used during the 787 assembly process, which he believed placed excessive stress on major airplane joints and left drilling debris between key joints on over 1,000 planes, according to his lawyers.

He also mentioned witnessing misalignment issues during the production of the 777 widebody jet, which were addressed by using force. Salehpour stated that he saw individuals physically aligning pieces of the airplane, describing the process as people "literally jumping on the pieces of the airplane to get them to align."

Following the confirmation of the investigation by the FAA, Boeing's shares closed down nearly 2% at $178.12 on Tuesday. The FAA emphasized the importance of voluntary reporting without fear of reprisal in ensuring aviation safety, encouraging everyone in the industry to share information as they thoroughly investigate all reports.