— Boeing faces major questions from lawmakers, airlines and the flying public after the 737 MAX 9 incident.
— Top appropriators reach an agreement on government funding totals.
— Talks between the U.S. and China meetings failed to produce a breakthrough on the Red Sea shipping attacks.
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REPUTATION CHECK: We seem far from the days of “If it’s not Boeing, I’m not going.”
The aerospace giant, once a standard-bearer for American technology and innovation, finds itself in yet another crisis, just five years after the last one. In that case, two 737 MAX 8 crashes in Indonesia and Ethiopia killed 346 people, sparked multiple probes, the ouster of Boeing’s CEO, and legislation from Congress.
The immediate threat posed by bolts on Boeing’s 737 MAX 9 line appears to be passing, now that the FAA has issued instructions to fix them — but the reputational damage it has caused is spreading. Congress is readying hearings, the FAA has stepped up oversight and is temporarily limiting one of Boeing’s production lines, and airline customers are starting to balk.
Boeing’s latest fall from grace has led to questions like: Just what is wrong at Boeing? Can any of their planes be trusted? Why are we back here — again? (It’s worth noting that some aspects of the legislative and regulatory response to the MAX 8 disasters in 2018 and 2019 are still being put into place as of this year.)
Those likely won’t yield comfortable answers. And now the manufacturer faces another period under the microscope as regulators begin looking into what appears to be extensive quality control issues that still exist across the company’s assembly lines, amid suggestions that Boeing has put quality behind profit.
Of course, Boeing is still a blue chip American company and it spreads its political contributions far and wide. In the 2022 campaign cycle, Boeing Co. logged over $4 million in contributions, and spent more than $13.4 million on lobbying, according to OpenSecrets. And, beyond political contributions, Boeing is a significant employer in several states, with the jobs and economic benefits that brings.
So is Boeing too big to fail?
Richard Aboulafia, an aerospace analyst with AeroDynamic Advisory, said that Boeing doesn’t really fit that script, and that its executives rather appear to be “simply intent on destroying their competitive position.” Boeing isn’t dead in the water, yet. But Aboulafia said arresting its fall will require the board moving to eject people at the top “who appear to be trying to drive the company into the ground.”
Boeing still has “a lot of good people, a lot of good products, a lot of good technologies. [But] unless the board intervenes, you’ll just see a continued downward path,” he said.
“The company marches from crisis to crisis, from loss to loss. Spiraling downward is not status quo — but on the other hand, yeah, [for Boeing it’s becoming] status quo.”
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DIVERSION: Sen. Ted Cruz (Texas), the top Republican on the Senate Commerce Committee, alongside other GOP senators on the committee on Friday sent a letter to Chicago’s Mayor Brandon Johnson asking whether airport resources are being diverted at the city’s O’Hare International Airport to house migrants. Migrants have been temporarily staying at O’Hare for some months, and the senators, citing the FAA, said that the practice could breach agreements to receive federal assistance for the airport.
“[T]here are several obligations that come with receiving … federal assistance, but the ‘[m]ost important is that the airport and its facilities must be available for public use as an airport,’” they said. In November, House T&I members pressed the DOT to direct the FAA to reject attempts to house migrants in airports, even on an interim basis, as it uses facilities for “nonaeronautical” purposes. More from the senators’ letter here.
As a reminder: Since the FAA doesn’t operate airports, it’s up to the local municipality or state government to work with an airport to “seek permission from the FAA to allow temporary use of airport property for non-aviation purposes,” the agency previously told POLITICO. And not all instances require the FAA’s permission.
AGREEMENT REACHED: Top appropriators reached a deal late Friday night on the totals for a dozen spending bills, Caitlin Emma reports, but the numbers weren’t released for the bills.
The agreement clears a critical hurdle for government spending talks that will continue throughout February, as government funding for veterans, transportation, agriculture and energy programs runs out March 1. Funding for the rest of the government, including the military and the biggest domestic programs, expires March 8.
RED SEA ROT: Houthi attacks on ships in the Red Sea have started taking a toll on food supplies. Beyond adding costs to shipping, the delays also mean more risk of food rotting in transit. Though so far the disruption is primarily to goods going to and coming from Europe, if it goes on long enough it could disrupt the wider economy. Alessandro Ford has more.
The U.S. failed to prod China into pressuring Iran to stop Houthi attacks on Red Sea shipping, Phelim Kine reports, as national security adviser Jake Sullivan raised concerns about the attacks with Chinese Foreign Minister Wang Yi in Bangkok, Thailand, on Friday and Saturday. The talks ended with no sign that China is willing to take decisive steps to use its economic power on Iran — which funds and equips Yemen’s Houthi militia — to stem the threat to global supply chains.
CAN AI HELP YOU CONSERVE GAS? AI holds the promise of benefits for transportation, including cutting down on gasoline burn through better traffic management and increased monitoring of road and bridge conditions (which could also help safety). One major example is Google’s Project Green Light, which uses AI map data to help keep traffic flowing in 12 cities around the globe. It’s also planning an update to Google Maps that will show people not just the fastest route, but also the most fuel efficient. But as with so many things, using AI has tradeoffs — chief among them, concerns about privacy. Mike Lee from E&E News has more about the balancing act.
— “JetBlue tells Spirit Airlines that it may terminate its $3.8 billion buyout offer challenged by US.” The Associated Press.
— “Exclusive: Musk brain implant company violated US hazardous material transport rules -documents.” Reuters.
— “Airbus Hunts for Delivery Slots to Win Over Key Boeing Customer.” Bloomberg.
— “Remember Auto Leasing? It’s Rebounding In 2024, Thanks In Part To EVs.” Forbes.
— “Auto Shows Aren’t Dying, They’re Evolving.” Motor1.
— “Meet the House Republican advising Trump on minerals.” E&E News.
— “GM and Honda start commercial US fuel cell production.” E&E News.
