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.