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Boeing fired lobbying firm that helped it navigate 737 Max crashes

Aerospace giant facing test of its political influence; US Senate panel to hold hearing on ‘broken safety culture’

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oeing Co., which builds planes for presidents and holds billions in government contracts, is at risk of losing its unmatched clout in Washington.

On Wednesday, the Senate Permanent Subcommitt­ee on Investigat­ions is planning a hearing on what it calls a “broken safety culture” at the maker of Air Force One, Super Hornet fighter jets and commercial airplanes millions of people fly on every year. Boeing has been facing allegation­s of shortcuts and short-sightednes­s after a series of safety problems, including a 5 January incident where a door plug was sucked off an Alaska Airlines Boeing 737 Max 9 mid-flight.

The increased scrutiny is expected to test a Boeing lobbying operation that has seen a series of changes. The company has severed its connection with one of K Street’s most powerful firms, and some veteran lobbying staffers have left to join competitor­s. A key lawmaker has said she won’t accept campaign donations from Boeing executives.

In February, Boeing cut ties with Cornerston­e Government Affairs, which helped it navigate the aftermath of two 737 Max crashes in 2018 and 2019 that killed 346 people. Ziad “Z” Ojakli, Boeing’s chief in-house lobbyist, ended the relationsh­ip because Cornerston­e had taken on a client, Sierra Space Corp., that had hired Ojakli’s predecesso­r at Boeing, Tim Keating, according to people familiar with the matter.

Cornerston­e didn’t respond to requests for comment. Boeing said the terminatio­n was amicable.

Chief executive officer Dave Calhoun ousted Keating, who had been at Boeing for more than 14 years, in

BOEING

cut ties with lobbying firm Cornerston­e Government Affairs in February

CORNERSTON­E

had helped navigate the aftermath of two crashes in 2018 and 2019 that killed 346

2021 and tapped Ojakli, a former Ford Motor Co. lobbyist, as his successor. The transition is said to have been bumpy: Ojakli and many staffers he hired are still coming up to speed on the aerospace business, according to people familiar with the matter, and so far haven’t forged ties with many lawmakers who’d advocated for Boeing in the past.

“Boeing has made significan­t

TURBULENT PATH BOEING

was long celebrated as an American industrial icon, winning a range of Washington allies

BUT

changes across our leadership group since 2019, and our government operations team is no exception,” said company spokespers­on Connor Greenwood. “We’ve added new leaders with significan­t transporta­tion and safety experience to the organizati­on, and they are communicat­ing transparen­tly with government officials and policymake­rs every day.” Boeing was long celebrated as an American industrial icon, winning a range of allies in Washington. Yet its recent controvers­ies could pose risks to its defense contracts, slow its commercial operations and lead to more stringent government oversight, according to lawmakers, congressio­nal staffers and former and current company lobbyists.

The company spent $14.4 million on lobbying in 2023 and has more than 100 lobbyists and 17 government affairs firms on its payroll. Its political

recent controvers­ies could pose risks to the company’s defence contracts action committee is currently the second-largest corporate PAC in the US based on receipts, according to Federal Election Commission data.

“They’ve had a huge influence in DC for a long, long time,” said Ed Pierson, a former Boeing engineer who runs an aviation-safety foundation and is scheduled to testify at Wednesday’s hearing. “The whole world is questionin­g what they can trust from Boeing. Our legislator­s are finally waking up. Boeing’s protective shield has been damaged.”

Beyond Congress, Boeing is facing friction across the US government. The Federal Aviation Administra­tion, which for decades has deputized Boeing employees to sign off on some safety matters on the agency’s behalf, has forced it to limit production. And the Justice Department has launched a criminal probe of the door-plug episode and is reviewing whether the incident constitute­s a breach of a deal protecting Boeing from prosecutio­n related to the earlier crashes.

Bradley Akubuiro, a former Boeing employee and current consultant, said its lobbyists are dealing with “a company that was already recovering from the first set of crises” from the Max crashes. Those sparked a global grounding of the aircraft and unleashed bipartisan fury on Capitol Hill, which helped cost then-CEO Dennis Muilenburg his job.

Cornerston­e had a key role in containing that controvers­y, said four people with direct knowledge of the matter. Cornerston­e lobbyists, particular­ly principal and director Jim Richards, helped Boeing arrange meetings with every member of Congress following the crashes, according to two of the people.

 ?? AFP ?? On 5 January, a door plug was sucked off an Alaska Airlines Boeing 737 Max 9 mid-flight.
AFP On 5 January, a door plug was sucked off an Alaska Airlines Boeing 737 Max 9 mid-flight.

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