In a sign of rising strain between Boeing (NYSE:BA) and government agencies, the U.S. National Transportation Safety Board (NTSB) has sanctioned the aerospace major for disclosing non-public details of an ongoing investigation into a 737 Max mid-air emergency. Additionally, the NTSB stated that it would refer the company’s conduct to the Justice Department.
Details of the NTSB’s Sanctions
The NTSB has stated that Boeing “blatantly violated” the agency’s regulations by sharing private investigative information with the media and speculating about the cause of the January 5 Alaska Airlines (NYSE:ALK) door plug blowout.
As a result, Boeing will remain part of the investigation but will no longer have access to unpublished information produced during the NTSB’s inquiry into the accident.
According to Reuters, citing industry experts, the NTSB’s sanctions will restrict the company’s ability to access investigative information and offer suggestions, but the company will be free to defend its technology and practices.
When Did BA Violate the NTSB’s Regulations?
The NTSB noted that Boeing’s violation occurred during a media briefing on quality improvements. During the media briefing held earlier this week, a senior Boeing executive discussed the Alaska Air incident, stating that the plug was opened on the assembly line without proper paperwork to fix the surrounding rivets, and missing bolts were not replaced.
The executive added that the team that came in and closed the plug could not be held responsible for reinstalling the bolts.
Following this briefing, the NTSB commented that the Boeing executive provided “investigative information and gave an analysis of factual information previously released.”
Is BA Stock a Good Buy?
Analysts remain cautiously optimistic about BA stock, with a Moderate Buy consensus rating based on 16 Buys, six Holds, and two Sells. Year-to-date, BA has declined by more than 30%, and the average BA price target of $211.19 implies an upside potential of 18.3% from current levels.
