Boeing Shares Tumble After NYT Reveals Whistle-Blower Report On 787 Dreamliner Fuselage Flaws

Shares of Boeing are moving lower in early afternoon trade following a report from The New York Times of an engineer at the airplane manufacturer turned whistle-blower, revealing that sections of the 787 Dreamliner fuselage are improperly fastened together, posing structural integrity risks.  

Sam Salehpour, who worked on the 787 Dreamliner fuselage for more than a decade, detailed to NYT in a series of interviews that were packaged into documents and sent to the Federal Aviation Administration that the widebody plane is produced in several large sections by different manufacturers, and not all pieces were the same shape when they were fitted together. He said this could create structural issues over time. 

boeing shares tumble after nyt reveals whistle blower report on 787 dreamliner fuselage flaws

On April 17, Senator Richard Blumenthal, a Democrat of Connecticut and the chairman of the Senate Homeland Security and Governmental Affairs Committee's investigations subcommittee, will hold a hearing featuring Salehpour to address his concerns about the 787 Dreamliner. 

"Repeated, shocking allegations about Boeing's manufacturing failings point to an appalling absence of safety culture and practices — where profit is prioritized over everything else," Blumenthal said in a statement. 

Recall, in 2014, an Al Jazeera undercover report found that workers at the 787 factory in South Carolina were not confident in the plane's manufacturing quality, with at least one worker callin it "f**king sh*t." 

"This is the culture that Boeing has allowed to exist," Katz said, adding, "This is a culture that prioritizes production of planes and pushes them off the line even when there are serious concerns about the structural integrity of those planes and their production process."

Boeing responded to the NYT report and said it was "fully confident in the 787 Dreamliner," adding, "These claims about the structural integrity of the 787 are inaccurate and do not represent the comprehensive work Boeing has done to ensure the quality and long-term safety of the aircraft."

Investors were spooked by the report, which is yet another issue for Boeing. Shares in New York tumbled 2% around noon. 

boeing shares tumble after nyt reveals whistle blower report on 787 dreamliner fuselage flaws

Salehpour's allegations are yet more problems for Boeing after a door plug ripped off an Alaska Airlines 737 Max in early January. Since then, other issues have plagued Boeing jets across US carriers. The Justice Department has begun a criminal investigation into Boeing jets, and the CEO, Dave Calhoun, recently announced that he will step down later this year. 

Authored by Tyler Durden via ZeroHedge April 9th 2024