MileHighBronco
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Workers at a Boeing Supplier Raised Issues About Defects.
Workers at a Boeing Supplier Raised Issues About Defects. The Company Didn’t Listen.
Quote:Less than a month before a catastrophic aircraft failure prompted the grounding of more than 150 of Boeing’s commercial aircraft, documents were filed in federal court alleging that former employees at the company’s subcontractor repeatedly warned corporate officials about safety problems and were told to falsify records.
One of the employees at Spirit AeroSystems, which reportedly manufactured the door plug that blew out of an Alaska Airlines flight over Portland, Oregon, allegedly told company officials about an “excessive amount of defects,” according to the federal complaint and corresponding internal corporate documents reviewed by us.
According to the court documents, the employee told a colleague that “he believed it was just a matter of time until a major defect escaped to a customer.”
The allegations come from a federal securities lawsuit accusing Spirit of deliberately covering up systematic quality-control problems, encouraging workers to undercount defects, and retaliating against those who raised safety concerns. Read the full complaint here.
Although the cause of the Boeing airplane’s failure is still unclear, some aviation experts say the allegations against Spirit are emblematic of how brand-name manufacturers’ practice of outsourcing aerospace construction has led to worrisome safety issues.
They argue that the Federal Aviation Administration (FAA) has failed to properly regulate companies like Spirit, which was given a $75 million public subsidy from Pete Buttigieg’s Transportation Department in 2021, reported more than $5 billion in revenues in 2022, and bills itself as “one of the world’s largest manufacturers of aerostructures for commercial airplanes.”
“The FAA’s chronic, systemic, and longtime funding gap is a key problem in having the staffing, resources, and travel budgets to provide proper oversight,” said William McGee, a senior fellow for aviation and travel at the American Economic Liberties Project, who has served on a panel advising the US Transportation Department. “Ultimately, the FAA has failed to provide adequate policing of outsourced work, both at aircraft manufacturing facilities and at airline maintenance facilities.”
David Sidman, a spokesperson for Boeing, declined to comment on the allegations raised in the lawsuit. “We defer to Spirit for any comment,” he wrote in an email to us.
Spirit AeroSystems did not respond to multiple requests for comment on the federal lawsuit’s allegations. The company has not yet filed a response to the complaint in court.
There's a lot more in that article that raises alarms.
Quote:Spirit was established in 2005 as a spin-off company from Boeing. The publicly traded firm remains heavily reliant on Boeing, which has lobbied to delay federal safety mandates. According to Spirit’s own Securities and Exchange Commission filings, the company’s “business depends largely on sales of components for a single aircraft program, the B737,” the latest version of which — the 737 Max 9 — has now been temporarily grounded, pending inspections by operators.
Spirit and Boeing are closely intertwined. Spirit’s new CEO Patrick Shanahan was a Trump administration Pentagon official who previously worked at Boeing for more than thirty years, serving as the company’s vice president of various programs, including supply chain and operations, all while the company reported lobbying federal officials on airline safety issues. Spirit’s senior vice president Terry George, in charge of operations engineering, tooling, and facilities, also previously served as Boeing’s manager on the 737 program.
Last week’s high-altitude debacle — which forced an Alaska Airlines 737 Max 9’s emergency landing in Portland — came just a few years after Spirit was named in FAA actions against Boeing. In 2019 and 2020, the agency alleged that Spirit delivered parts to Boeing that did not comply with safety standards, then “proposed that Boeing accept the parts as delivered” — and “Boeing subsequently presented [the parts] as ready for airworthiness certification” on hundreds of aircraft.
Then came the class-action lawsuit: In May 2023, a group of Spirit AeroSystems’ shareholders filed a complaint against the company, claiming it made misleading statements and withheld information about production troubles and quality-control issues before media reports of the problems led to a major drop in Spirit’s market value.
An amended version of the complaint, filed on December 19, provides more expansive charges against the company, citing detailed accounts by former employees alleging extensive quality-control problems at Spirit.
Company executives “concealed from investors that Spirit suffered from widespread and sustained quality failures,” the complaint alleges. “These failures included defects such as the routine presence of foreign object debris (‘FOD’) in Spirit products, missing fasteners, peeling paint, and poor skin quality. Such constant quality failures resulted in part from Spirit’s culture which prioritized production numbers and short-term financial outcomes over product quality, and Spirit’s related failure to hire sufficient personnel to deliver quality products at the rates demanded by Spirit and its customers including Boeing.”
Read it all here.
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