Shares of aircraft giant Boeing Co. (NYSE:BA) are trading lower on Tuesday.
Boeing is facing fresh allegations from a quality inspector, over the alleged mishandling of hundreds of defective parts potentially installed on new 737 Max aircraft, even as the aircraft maker continues to face scrutiny over its manufacturing processes.
Sam Mohawk, a Boeing inspector, lodged a complaint with the Occupational Safety and Health Administration on June 11, detailing the loss and mishandling of up to 400 faulty aircraft parts.
The allegations were brought to light by a U.S. Senate subcommittee, which released the details to members, Bloomberg reports.
Boeing has acknowledged the receipt of the complaint and is currently reviewing the claims. The allegations have prompted intensified scrutiny from various federal agencies, including the Justice Department, which is considering charges against Boeing for past safety lapses.
Also Read: Boeing And Airbus Under FAA Investigation For Authenticity Of Titanium Parts In Some Jets: Report
These new allegations add another layer of complexity as Boeing works to restore trust in its 737 Max series, previously grounded after two fatal crashes.
The Senate's Permanent Subcommittee on Investigations, which released Mohawk's complaint, is actively probing Boeing's practices.
This inquiry is part of broader efforts to ensure that manufacturing speeds and cost-cutting measures do not compromise aircraft safety.
The Federal Aviation Administration (FAA) has reported a significant increase in whistleblower activities since early this year, underscoring a growing culture of safety awareness among Boeing employees.
The CEO, David Calhoun, is set to appear before senators on Tuesday, where he will be questioned about the company's safety measures amid ongoing investigations.
Boeing stock has lost 16% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Invesco Aerospace & Defense ETF (NYSE:PPA).
Price Action: BA shares are trading lower by 2.25% at $174.45 at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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