Boeing Drops on Reports of FAA Investigation, Plummeting Demand for Flights

By Christiana Sciaudone

Investing.com -- Boeing (NYSE:BA) can’t catch a break.

Shares are down 3.3% after news that regulators have begun a formal investigation into the company after employees alleged they faced duress that threatened their independence while assessing aircraft designs on behalf of the government, Bloomberg said.

The Federal Aviation Administration is focused on a program known as Organization Designation Authorization that grants plane makers authority to sign off on designs for the agency. The agency is looking at whether workers faced “undue pressure,” Bloomberg said, citing government documents.

The FAA initiated a compliance action against Boeing after the 2018 Lion Air 737 Max crash near Jakarta that involved five Boeing engineers complaining about interference that conflicted with their roles as government representatives, Bloomberg said.

Airlines have canceled plane orders as demand for flights plummets amid the coronavirus pandemic.

Shares of Boeing hit a record early last year, and have since fallen about 60%.

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