Report: DOJ, DOT Scrutinizing Boeing 737 MAX Jets

Following two fatal crashes of Boeing Co BA's 737 Max Jetliners, federal prosecutors and the Department of Transportation are scrutinizing the development and rise of the plane, the Wall Street Journal reported Sunday

What Happened 

A grand jury subpoena was issued in Washington D.C. asking for documents about the MAX jetliners, the Journal reported. The request included correspondence in the form of emails and messages. 

It is very “unusual for federal prosecutors to investigate details of regulatory approval or to criminally probe into dealings between the FAA and the largest aircraft manufacturer it oversees," according to WSJ. Probes of aircraft programs or alleged lapses in safety oversight are typically handled as civil cases, often by the DOT inspector general.

The watchdog is trying to assess whether the FAA used appropriate design standards and engineering analysis in approving the 737 Max’s anti-stall system, the newspaper said.

A Boeing spokesman declined to comment on the WSJ story, according to the publication. 

Why it's Important

The two recent crashes of Boeing’s 737 Max aircraft have sparked the biggest crisis for Boeing of the past two decades.

737 MAX jetliners came into service and were approved to carry passengers in 2017. Governments worldwide have grounded the planes in the wake of a March 10 Ethiopian Airlines crash that killed everyone onboard. 

Bloomberg reported Sunday that a DOT investigation found in 2012 that the Federal Aviation Administration was told as long ago as seven years ago that Boeing had too much sway when it came to vetting their jets.

“In recent years, the FAA has shifted more authority over the approval of new aircraft to the manufacturer itself, even allowing Boeing to choose many of the personnel who oversee tests and vouch for safety. Just in the past few months, Congress expanded the outsourcing arrangement even further," the report said. 

Former National Transportation Safety Board Chairman Jim Hall told Bloomberg: "It raises for me the question of whether the agency is properly funded, properly staffed and whether there has been enough independent oversight." 

What's Next

The Seattle Times reported Sunday that the FAA delegated much of the 737 MAX's safety assessment to Boeing and that the analysis by Boeing returned to authorities had crucial flaws.

The newspaper’s report was based on interviews with current and former engineers directly involved or familiar with the evaluations. All of the sources asked not to be identified, and the newspaper said its investigation was underway before the Ethiopian crash.

The jetmaker told the Seattle Times that the FAA had concluded that the 737 MAX's flight control system met all FAA certification and regulatory requirements, and said it was an unable to comment due to an ongoing investigation, while saying there were "significant mischaracterizations" made. 

Boeing shares were down 2.74 percent at $368.61 at the time of publication Monday. 

Related Links:

Morgan Stanley Expects Sabre To See 'Minimal Disruption' From 737 Max Grounding

Boeing Trades In The Green On Report Of Coming Software Fix 

Photo by airbus777/Wikimedia

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