DiscoverGold
7 days ago
FBI tells Alaska Airlines passengers they may be ‘victim of a crime’
By: CNN news | March 22, 2024
Passengers on board the Alaska Airlines Boeing 737 Max 9 that suffered a terrifying midair blowout in January have received a letter from the FBI saying they may be victims “of a crime.”
Attorney Mark Lindquist, who represents multiple passengers that were on Alaska Airlines flight 1282, shared with CNN the letter that the FBI office in Seattle sent to passengers on Tuesday.
“I’m contacting you because we have identified you as a possible victim of a crime,” the letter reads in part. It also notes that the FBI is currently investigating the case.
“My clients and I welcome the DOJ investigation,” Lindquist told CNN, “We want accountability. We want answers. We want safer Boeing planes. And a DOJ investigation helps advance our goals.”
Attorney Robert Clifford, who represents many family members of the 2019 crash victims of a Boeing 737 Max jet flown by Ethiopian Air as well as some of the recent Alaska Air passengers, said some of his clients on Alaska Air also got the letter notifying them that they could be crime victims.
“I’m certain everyone on the plane will be getting this letter,” he told CNN. “The families of the Ethiopian Air victims should have also been considered crime victims.”
In addition to the letters that went out to passengers, flight attendants aboard Alaska Air Flight 1282 have been interviewed by investigators from the Justice Department, according to people familiar with the situation.
The letters were first reported by the Wall Street Journal earlier this month.
“The FBI does not confirm or deny the existence of an investigation,” FBI Seattle’s Public Affairs Office wrote in an email to CNN, citing Department of Justice policy.
Boeing’s potential criminal liability
But Justice opened a probe into the incident and Boeing in February, CNN has previously reported. That investigation carries the potential to upend a controversial deferred prosecution agreement that Boeing reached with the Justice Department in the final month of the Trump administration.
Tha settlement, which was criticized by families of crash victims and members of Congress, was over charges that Boeing defrauded the Federal Aviation Administration during the original certification process for the 737 Max jets. Boeing agreed to pay $2.5 billion as part of that settlement, but most of that was money Boeing had already agreed to pay to the airlines that had purchased the Max jets grounded for 20 months following the Ethiopian Air crash and an earlier crash in Indonesia.
The deferred prosecution agreement could have ended the threat of Boeing facing criminal liability for those earlier fraud charges. But the Alaska Air incident came just days before a three-year probation-like period was due to end, so the criminal probe could expose Boeing to charges not just for the Alaska Air incident but also the earlier allegations of criminal wrongdoing.
Boeing declined to comment.
On January 5, 171 passengers and six crew members boarded the flight in Portland, Oregon, bound for Ontario, California. Abruptly after take off, a panel of the fuselage called the “door plug” blew off, forcing the pilots to make an emergency landing.
A preliminary investigation by the National Transportation Safety Board found that the jet, which was delivered to Alaska by Boeing in October, had left Boeing’s factory without the four bolts needed to keep the door plug in place.
While the NTSB has yet to assess blame for the missing bolts, it has criticized Boeing for not having the documentation available showing who worked on the door plug when the plane was at Boeing’s factory.
The FAA has also found multiple problems with production practices of both Boeing and its major supplier Spirit AeroSystems following a six-week audit of Boeing triggered by the January 5 door plug blowout.
Subpoenas from the Justice Department were also recently sent seeking documents and information that may be related to Boeing and Spirit AeroSystems and mentions the “door plug” that is used in the Boeing 737 Max 9s, according to a report from Bloomberg.
Boeing CEO Dave Calhoun told investors last month that “We caused the problem, and we understand that. Whatever conclusions are reached, Boeing is accountable for what happened.”
The development comes the same week Boeing said it will report massive losses in the first quarter stemming from the Alaska Airlines incident.
The losses will be in part because of compensation to airlines that owned the Max 9, which was grounded for three weeks after the incident. Alaska Air CEO Ben Minicucci told investors last month that the incident cost his airline about $150 million, and that it expected to be compensated for those losses by Boeing.
The other contributors to losses will be “all the things we’re doing around the factory,” Chief Financial Officer Brian West said on Wednesday, leading to slower production at its 737 Max plant in Renton Washington.
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DiscoverGold
1 week ago
Update: Boeing Expects up to $4.5 Billion Q1 Cash Outflow, Lowers Monthly Production Target
By: MT Newswires | March 20, 2024
Boeing BA has decided to keep monthly B737 jet production below 38 as the planemaker predicted cash outflow of $4 billion to $4.5 billion in Q1, Chief Financial Officer Brian West said Wednesday in a conference.
West said the company is "deliberately going to slow" as it implements changes aimed at addressing the US Federal Aviation Administration's concerns, according to a Capital IQ transcript.
"We are the ones who made the decision to constrain rates on the 737 program below 38 per month until we feel like we're ready. And we'll feel the impact of that over the next several months," West said.
The company also plans to only accept a fully conforming fuselage from supplier Spirit AeroSystems
SPR, following regulatory scrutiny of its manufacturing processes after the Jan. 5 incident involving a blowout in a 737 Max 9 plane mid-flight.
Boeing shares were down 2% in recent premarket activity.
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1 week ago
Airbus CEO says Boeing's problems are bad for whole industry
By: Reuters | March 19, 2024
Airbus AIR takes no pleasure in the technical problems plaguing U.S. rival Boeing BA as they damage the image of the entire aerospace industry, the CEO of the European planemaker said on Tuesday.
"I am not happy with the problems of my competitor. They are not good for the industry a whole," Guillaume Faury told the "Europe 2024" conference in Berlin, when asked about technical problems at Boeing.
"We are in an industry where quality and safety is top priority," he added.
Boeing was rocked in January by a door plug blowout on one of its 737 MAX 9 jets during an Alaska Airlines ALK flight.
Earlier this month, Boeing also told airlines operating 787 Dreamliners to check flight deck switches after a sudden mid-air dive by a LATAM Airlines LTM 787 plane left more than 50 people injured.
French Finance Minister Bruno Le Maire told the same event in Berlin that Airbus was currently in better shape than Boeing.
"I prefer Airbus' situation to that of Boeing," he said.
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DiscoverGold
2 weeks ago
Politicians Are Dumping Boeing Stock, Should You?
By: Barchart | March 18, 2024
The Boeing Company BA is one of two major jet producers worldwide, effectively forming a duopoly with Airbus (AIR.FP) - but after another string of incidents involving Boeing's 737 Max fleet, previously grounded for two years over safety concerns due to fatal crashes, investors seem to be losing confidence in this industry titan. While analysts continue to back their bullish ratings on BA stock, here's a closer look at the latest troubles for Boeing, and the politicians who are dumping the blue chip stock.
What's Going On with Boeing Stock?
In early January, Boeing made headlines for all the wrong reasons when the panel blew out of one of its jets mid-flight - an issue that has since been traced back to missing bolts on a door plug. The Department of Justice (DoJ) has now opened a criminal probe into the Alaska Air Group
ALK flight, in part to determine whether Boeing complied with the settlement of a prior investigation into its 737 Max fleet. Previously, the fleet was grounded for two years after a pair of deadly crashes in 2018 and 2019 that left 346 people dead.
Against this backdrop, BA is one of the worst-performing stocks of 2024 among S&P 500 Index SPX components, down more than 31% since the start of the year.
Following the decline, BA is now valued at 1.25x forward sales - a discount to the industrial sector median of 1.46, as well as its own five-year average of 1.67. However, value-minded investors may want to proceed with caution before scooping up the beleaguered blue-chip stock on the current pullback.
Bipartisan Boeing Stock Sales in Congress
Amid news of the DoJ probe into Boeing, it's worth noting that members of Congress have been dumping shares of Boeing, according to recent disclosures - and the selling has been bipartisan in nature.
On Jan. 9, just days after the Alaska Air flight, Rep. Blake Moore (R-Utah) sold BA shares worth up to $15,000, according to Quiver Quantitative data. The Republican sits on the House Budget and Ways & Means Committees.
More recently, on Feb. 28, Rep. Bill Keating (D-Mass.) sold Boeing shares worth up to $15,000. The blue-state representative is a member of the Armed Services and Foreign Affairs Committees.
Inside Boeing's Financials
Along with the new crop of 737 Max safety concerns, Boeing's lack of profitability is another point of concern. Over the past 16 quarters, Boeing has reported profits only once (Q2 2021). Revenues have declined significantly, too, falling from $101 billion in fiscal year 2018 to $77.8 billion in fiscal 2023.
Results for the recently completed Q4 of fiscal 2023, however, surpassed Wall Street's expectations. Boeing reported a Q4 loss of $0.47 per share, which was much improved from the previous year's loss of $1.75 per share, and topped the consensus estimate for a loss of $0.72 per share. Likewise, revenues climbed by 10% to a stronger-than-forecast $22.2 billion.
Free cash flow of $2.95 billion also exceeded the consensus estimate, and 2023 free cash flow of $4.43 billion landed toward the high end of the company's targeted range. Boeing expects to reach free cash flow of $10 billion by 2025-26 - but declined to offer a financial forecast for 2024, with CEO Dave Calhoun asserting that quality is the focus right now.
What Do Analysts Expect for BA Stock?
Despite the serious issues at Boeing, analysts have yet to abandon the stock - perhaps because, along with Airbus, Boeing accounts for roughly 99% of all orders for large aircraft. Moreover, according to market research firm Statista, the global aerospace services market is expected to reach more than $3.6 trillion by 2041.
While the consensus rating on Boeing has dropped from a “Strong Buy” to a “Moderate Buy” over the past month, Goldman Sachs is one of the more prominent firms to back its bullish view on BA. In late January, analyst Noah Poponak upped his price target on the aerospace giant to $268, which implies expected upside of 48.9% to current levels.
Overall, analysts are cautiously optimistic about Boeing stock. Out of 21 analysts covering the shares, 14 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, and 6 have a “Hold” rating.” The mean target price is $266.22, which denotes an upside potential of about 48% from current levels.
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Jetmek_03052
2 weeks ago
Thanks, although I'm sure I will be unmercifully attacked for the post by certain contributors here.
I agree about the seat stops. It's hard to believe that some sort of "switch" or latch on the seat controls would allow such an extreme forward movement as to jam the pilot into the control yoke.
It certainly seems like the majority of these incidents have been caused by the UAL maintenance and pilot group. Scott Kirby (UAL CEO) once again shot his mouth off and should have kept it shut.
Still, that plug door F/U never should have happened. Now that all the evidence in, it is clear that Boeing was indeed responsible for that one. I hope they fired everyone responsible for it and cut their *alls off. They lucked out that the incident happened at the altitude it did, and that no one was sitting in that seat adjacent to it. Still though...Alaska airlines. MMmmmm. I'd like to see what they did to xshoot all the supposed squawks they got in regard to the pressurization system problems that aircraft continually had. And was it an accident that no one was seated next to that fuselage plug, and that that particular aircraft was apparently forbidden to fly ocean routes? Accidents usually happen after a series of mistakes are made. I wonder if Alaska Air didn't try hard enough to find those pressurization anomalies.
We will probably never be allowed to see behind the scenes.
It is inconceivable to me that Boeing could have had anything to do with the death of that whistleblower, but certainly not impossible. I eagerly await the continued investigation of it.
Jetmek_03052
2 weeks ago
I laugh at most of the posts here. Does Boeing have some quality control issues to address? Yes, it certainly looks as if they are still fighting those issues. But other than the issue with the door plug - an incident in which I might add where there were no fatalities (thank the Good Lord) and no serious injuries?
EVERY SINGLE item that has been highlighted here since that door plug issue can be DIRECTLY blamed on issues with the specific airline maintaining the aircraft, a parts failure (which cannot be anticipated on parts that do not have life limitations) or pilot error.
1. Windshield failure (a somewhat common occurrence). - Parts Issue
2. Flames seen trailing from an engine - caused by an inspection plug which was left off a boroscope inspection port. - Maintenance issue.
3. Hard landings, Landing overshoots. - Pilot Error.
4. Fuel seen coming out from a wheel well - actually re-identified as a hydraulic leak. Almost certainly a maintenance or parts issue (line left loose or possibly a reservoir filler cap left loose?), or a parts failure due to a line splitting or being hit by a foreign object during takeoff.
5. Landing gear collapse on one side. Pilot error - after landing, he taxied into the area adjacent to the taxi way. Gear became stuck and collapsed.
6. Sudden drop in altitude. - Now being reported as the Flight attendant inadvertently actuating some sort of switch located in the cockpit, that forced the pilot into the flight controls. This is what caused the aircraft to descend violently.
So. Almost EVERY incident cited here (other than the door plug issue) was not caused by Boeing or the build process of any Boeing aircraft.
Many here are so very quick to point out these incidents as Boeings fault, when in reality? 90% of the time, Boeing is not at fault at all. And most of you are unwilling to wait for investigation results and the REAL story to come out, when these incidents occur.
CorporateDick
2 weeks ago
…However, the terrifying drop was likely a mishap in the cockpit and not a flaw with the plane itself, The Wall Street Journal reported Friday.
The report comes days after a packed 787 Dreamliner took a nosedive during a trip from Sydney, Australia to Auckland, New Zealand. Latam Airlines Flight LA800 was about an hour away from its destination Monday when “all of a sudden, the plane just dropped out of the sky,” passenger Brian Jokat told New Zealand news outlet Stuff.
Unnamed U.S. industry officials briefed on a preliminary investigation into the incident told the Journal that a flight attendant serving a meal accidentally bumped a switch on the pilot’s seat, knocking the pilot into the controls and forcing the plane to take a plunge.
https://www.yahoo.com/news/boeing-787-nosedive-caused-flight-223200715.html?
DiscoverGold
2 weeks ago
Boeing’s problems could soon become your problem
By: CNN news | March 15, 2024
Boeing’s problems aren’t just Boeing’s. They also could spell trouble for your wallet and the broader US economy.
One of America’s biggest manufacturers is dealing with some serious production, quality and safety problems that worsened this week after a 787 Dreamliner plunged suddenly mid-flight, injuring dozens of passengers. It’s not yet clear whether Boeing was to blame, but it came at a horrible time for a company grappling with some severe damage to its already-battered reputation.
Boeing’s crisis could result in more expensive airfares and weaker economic growth, economists say.
The aircraft manufacturer is a massive company with a workforce of more than 140,000 employees around the world, generating tens of billions in revenue each quarter as one of two global players in the production of planes, the other being Airbus.
Boeing’s production alone represents a significant part of America’s economy. But the country – and the world – relies on its planes for travel, business, deliveries and jobs.
Delays in deliveries, which Boeing and several airlines expect as it undergoes an intensive federal investigation of its manufacturing processes, could reduce the number of planes available to Americans and cut into all those economy-boosting benefits its normally provides.
More expensive airfares
Boeing’s mid-flight disasters, most notably an Alaska Airlines 737 Max door plug that blew off the side of the plane shortly after takeoff, clearly mean the company has issues to address.
Boeing has already slowed down production of its popular 737 Max jets as regulators scrutinize the company’s practices, which has already led to fewer flights being scheduled as airlines brace for snags in deliveries. The sharp 6.1% drop in new orders for durable goods in January was largely due to fewer order for Boeing jets.
Boeing reported this week that it shipped a meager 17 Max jets in February, which was half as much the company shipped in December. Southwest and United earlier this week said they expect Boeing to ship them fewer planes than they planned on receiving, so they’ll hire fewer pilots.
Fewer jets could also push up airfares.
“Less supply of airplanes coming online means there’s going to be more demand for flying than capacity is able to fulfill, so that keeps upward pressure on airfares, all else equal,” Kathy Bostjancic, chief economist at Nationwide, told CNN. “We have already seen airfares jump the last few months and it was up 3.6% in February.”
Boeing’s need to address its problems means it likely won’t cut back on hiring, even if demand for its planes weakens.
“I don’t see them trimming labor at a time of serious quality concerns and if anything, Boeing might try to hire more to get the quality issues right,” José Torres, senior economist at Interactive Brokers, told CNN.
Higher labor costs would mean Boeing loses even more money, plunging the company into an even deeper financial hole. That would inflict even further damage to Boeing’s already-beaten down stock price.
Weaker US economic growth and a boon for Airbus
When regulators believed Boeing would halt production of the 737 Max jet in January 2020, after two fatal incidents in 2019 and the subsequent grounding of those jets that year, the New York Fed estimated that the production shutdown could shave 0.4% from US gross domestic product in 2020, the broadest measure of economic output. (Boeing continued to build the 737 Max throughout the crisis).
Then, of course, the pandemic happened, which dealt an even tougher blow to the company, resulting in nearly $12 billion in losses that year.
The New York Fed analysis stated that “Boeing is a large firm that is highly integrated in the domestic production network” and that production stoppages can “have significant effects on the macroeconomy.”
Since Boeing is the single largest US exporter, weaker demand for its planes would means fewer exports, which contribute to GDP growth if they exceed imports — known as “net exports.”
Boeing hasn’t announced that it will stop producing any of its aircraft outright, but its plans to increase production of the 737 Max are on hold as the Federal Aviation Administration awaits for the company’s plan on how to end its continued quality issues.
And Boeing’s years of problems have led to success for its French rival Airbus, which has overtaken Boeing as the world’s largest aircraft manufacturer.
It’s not easy for airlines to switch manufacturers overnight, but the trend is clearly pointing in Airbus’ favor, and if US imports of Airbus planes for domestic carriers pick up as Boeing indeed suffers weaker demand, that would then weigh on America’s GDP.
“The declining demand of plane orders by airlines for Boeing aircrafts might just get directed towards Airbus instead, and doesn’t just disappear,” Lisa Simon, chief economist at Revelio Labs, wrote in a statement to CNN.
She added that “this whole fiasco absolutely will likely have adverse effects on the aircraft manufacturing sector in the US” and that it would be “good for the European market.”
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2 weeks ago
Boeing's Jet Production's Indirect Approval May Be Halted if Needed, European Regulator Says
By: Market Chatter | March 14, 2024
Boeing's BA jet production's indirect approval may be halted by the European Union Aviation Safety Agency if needed, Reuters reported Wednesday, citing Luc Tytgat, the regulator's acting executive director.
"All the tools must be implementable as soon as we see the justification or situation that requires us to take appropriate measures," Reuters quoted Tytgat as saying in an interview.
The decision may come if "more fatal accidents" take place in the future, however, there is no immediate threat to the planemaker's production certification, the report added, citing Tytgat.
Boeing declined MT Newswires' request for comment.
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DiscoverGold
2 weeks ago
'Short Sell' Boeing, Some Redditors Say But For Others It's 'Time To Buy'
By: Benzinga | March 14, 2024
Lately, there’s been a lot of complexity and controversy surrounding aerospace giant Boeing Co BA due to safety concerns.
Recent discussions on the r/stocks subreddit, sparked by user KDI777’s post titled “Short Sell Boeing,” shed light on the multifaceted landscape that Boeing investors find themselves navigating.
Short Sell Boeing
byu/KDI777 instocks
Shareholder Interest At The Expense Of Passenger Safety
KDI777’s call to start shorting and selling Boeing stock resonated with many, citing concerns that the company prioritizes shareholder interests at the expense of passenger safety.
The sentiment is stark: “They compromise their passengers for the benefit of their stockholders.” This accusation strikes at the heart of a company that has long been regarded as a cornerstone of the aerospace industry.
However, responses from fellow Redditors provide a nuanced perspective on Boeing’s financial performance and strategic importance.
User get_MEAN_yall points out that Boeing’s stock hasn’t been a stellar performer, suggesting that the alleged prioritization of shareholders hasn’t necessarily translated into strong returns. Meanwhile, rub3s highlights the enduring presence of Boeing in the industry, indicating that despite its recent struggles, the company remains a formidable player.
Yet, concerns persist.
Boeing Financial Health Raises Eyebrows
Key-Tie2542 delves into Boeing’s financials, revealing a troubling picture of negative book value, negative earnings, and substantial debt. Despite its critical role in national security and its close ties to government agencies, Boeing’s financial health raises eyebrows among investors.
BlueCollar-Bachelor brings attention to Boeing’s involvement in military contracts, emphasizing its strategic importance beyond commercial aviation. This dual role as a defense contractor adds another layer of complexity to Boeing’s financial outlook, with certain aspects of its operations classified for national security reasons.
Strategic Significance Lends Resilience
User jlawso21 offers a sobering reminder of Boeing’s resilience despite its challenges. As one of only two major players in the airliner market – the other being Airbus SE – Boeing holds a unique position that extends far beyond financial metrics. Its strategic significance for both the economy and national defense underscores its enduring presence in the market.
The discourse surrounding Boeing on r/stocks reflects the intricate balance investors must strike between financial considerations, ethical concerns, and geopolitical realities.
While short-term strategies may hold appeal for some, the long-term outlook for Boeing remains intertwined with broader industry dynamics and global security imperatives. As investors weigh their options, they must navigate these complexities with caution and foresight, recognizing that the skies ahead may be turbulent, but opportunities for growth and stability still abound.
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Agoura Guy
2 weeks ago
"Boeing "Overwrote" Camera Footage Of Work On MAX Jet Door That Blew Out, Can Not Identify Employee Who Worked On It"
Just when you thought it couldn't get any more bizarre or surreal, the Boeing story did just that.
As previously reported, the aerospace giant has been under regulatory scrutiny following a string of safety-related incidents since the beginning of the year (really, since 2019 when two of its 737 MAXes fell out of the sky like overpriced deadly paperweight, but let's just skip to the latest snafu), starting with a door blowing off a flight and continuing with multiple other incidents, including a cracked cockpit window, bolts missing on a wing, various wheels falling off during takeoff in at least two incidents and several engine fires/failures.
And as the pressure ratchets up on Boeing, it's becoming increasingly obvious that management is running the same type of interference it did during the infamous MCAS scandal and ensuing cover-up attempt which cost former CEO Muilenburg his job. Sure enough, on Wednesday we learned that Boeing - in a pure coincidence that Jeffrey Epstein would approve of - "overwrote", i.e. deleted, security camera footage showing work being done on a door that blew out on the Alaska Airlines MAX jet in January.
It's not just the footage however: NTSB Chair Jennifer Homendy said it is unclear "who performed the work to open, reinstall, and close the door plug on the accident aircraft," as Boeing is "unable to find the records documenting this work." In Homendy's letter, she writes that despite requests to Boeing and interviews at the Renton, Washington factory where the panel was removed, the identity of the crew member that worked on the panel remains unknown and has would be unable to "provide a statement or interview to NTSB due to medical issues."
It gets crazier: in her letter, NTSB Chair Jennifer Homendy said she directly appealed to Boeing CEO Dave Calhoun for information on who worked on the faulty door plug, expressing frustration over Boeing's claim of missing records and security footage. Even then, Boeing merely stonewalled and said it was "unable to provide that information and maintained that Boeing has no records of the work being performed."
Finally, the epic culmination - at least so far - of the shitstorm that has engulfed Boeing, we noted yesterday that a key whistleblower, a former quality control manager at the company who raised concerns about the firm's production standards, was found dead from an apparent suicide.
John Barnett, a former veteran Boeing employee of 32 years, passed away from a self-inflicted wound on March 9, the BBC reported on Monday evening. Barnett was involved in a whistleblower lawsuit against Boeing, alleging serious safety concerns at the North Charleston plant, where he managed quality for the 787 Dreamliner production. Boeing was in Charleston for legal interviews related to the lawsuit when he was found dead.
He claimed the push for speed compromised safety, with sub-standard parts being used and a significant failure rate in emergency oxygen systems. Despite raising these issues, he felt his concerns were disregarded, leading to legal action against Boeing, alleging career damage due to his whistleblowing.
Meanwhile, what would a catastrophe in a company near and dear to the government - and of course, the deep state - be without questionable trading surrounding the incident in Congress? In filings reported on Wednesday, it was revealed that Congressman William R. Keating sold somewhere between $1,001 and $15,000 worth of Boeing shares on February 28.
He's the latest Congress critter to have "excellent timing" when it comes to stock trades: while it isn't Fed Governor Raphael Bostic selling massive S&P futures lots ahead of Fed minutes dropping, the sale took place the day before it was announced that the DOJ was investigating Boeing. Recall, on February 29, Bloomberg wrote that the DOJ was "looking into" the Boeing door plug blowout that took place earlier that month. Since his sale, Boeing's stock value has tumbled by about 11%.
In any case, between Barnett who "suicided" himself, and now the video footage which also also apparently was "accidentally" snuffed out, we wonder just who is next on the Epstein escalator of "not suiciding themselves" at Boeing?