Analysts say Boeing’s decision to plead guilty allows it to focus on rebuilding a reputation sullied by two fatal crashes and the mid-air blowout aboard at 737 Max jet.
Boeing’s decision to plead guilty to a felony fraud charge for its role in two plane crashes that killed 346 people marks an effort to open a new chapter after a half decade of tumult and investigations. But immediate reactions to the deal — unveiled shortly before midnight Sunday — suggests moving on won’t be easy.as a soft landing for the aerospace behemoth.
Boeing has taken steps in recent months that it says is setting things right: planning a leadership shake-up, imposing corrective actions at its factories and acquiring one of its largest suppliers to gain stronger control over production. During a recent media tour, one of its executives said the giant company was engaged in “introspection” over airliner manufacturing and safety procedures. The company declined to comment Monday.
Senate investigators have kept up a steady drumbeat of disclosures about whistleblower allegations of weak safety oversight and poor workmanship. George Ferguson, an analyst with Bloomberg Intelligence, agreed the most prudent choice was to settle and move on. Pleading guilty to a fraud charge could pose obstacles to it continuing to work on federal contracts, but analysts say that it’s unlikely to be barred from government work. The company’s military business is key to the national defense, and it earned 37 percent of its $78 billion in revenue last year from U.S. government contracts.
“At some point you get to the point where if you don’t get better, you don’t survive,” he said. “Frankly Boeing is very fortunate to be in a duopoly where their risk of going away is very minimal. Had they been an auto company, things might have been very different right now.”
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