Former Boeing Inspector Says Scrap Parts Were Used In Planes For Over A Decade: Report

Author: Benzinga Neuro | July 04, 2024 05:26am

A former Boeing Co (NYSE:BA) inspector said that the company’s workers used parts deemed unsuitable for flying in its 787 Dreamliner assembly lines. This comes amid a series of safety issues that have plagued the company.

What Happened: Merle Meyers, a former Boeing quality-control manager with 30 years of experience, disclosed to CNN that workers at the 787 Dreamliner factory in Everett, Washington, regularly retrieved parts from an internal scrap yard and reintroduced them into the assembly lines. Meyers claims that these practices were used to meet production deadlines.

This follows a string of other whistleblowers who have raised concerns about Boeing’s manufacturing practices. Meyers alleges that these lapses were deliberate and organized efforts to bypass quality control processes and maintain demanding production schedules.

He further claims that this practice has been ongoing since the early 2000s, with an estimated 50,000 parts that were meant to be scrapped being used in aircraft construction. These parts ranged from small items like screws to more complex assemblies like wing flaps.

Boeing, in a statement to CNN, did not refute Meyers’ allegations but stated that it investigates all allegations of improper behavior and makes improvements when necessary. "We appreciate employees who raise their voice and we have systems in place to encourage them to speak up confidentially or anonymously," Boeing said.

"Hopefully we can get this company to heal and be what it was," Meyers said.

Boeing did not immediately respond to Benzinga's request for comment.

Why It Matters: Boeing has been under intense scrutiny due to a series of safety issues. The company is currently facing a criminal investigation over whether it misled the Federal Aviation Administration during the 2017 certification of the 737 Max, which was involved in two fatal crashes in 2018 and 2019, resulting in 346 deaths.

Boeing’s safety culture has also been called into question by other whistleblowers. A current Boeing quality investigator, Sam Mohawk, recently filed an official complaint reporting “a number of non-compliant parts making their way back to the airplanes for installation.” His complaint with the Occupational Safety and Health Administration was publicly released by a Senate subcommittee investigating Boeing.

Despite these issues, Boeing has shown signs of improvement. A recent analysis by Goldman Sachs suggests that the company is on track to achieve improved deliveries and production rates, with a buy rating and a $243 price target.

Price Action: Boeing Co’s stock closed at $184.31 on Wednesday, down 0.60% for the day. In after-hours trading, the stock dipped slightly to $184.29. Year to date, Boeing’s stock has declined significantly by $67.45, reflecting a decrease of 26.79%, according to data from Benzinga Pro.

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