I heard the news yesterday that Boeing was the biggest drag on the DOW (and they aren't doing any better today).
From this link.
"Boeing was the biggest drag on the Dow, shedding 1.9% after the aerospace giant saw its second-quarter profit fall 21% amid weaker revenue in both its aviation and defense businesses. The results beat profit expectations but missed on revenue."
Good to see that the stock is trending toward a realistic value that is less Boeing false P.R. based. Even at $67 and a few pennies, Boeing stock is more than double the price it should be considering its corrupt and incompetent management, hidden and excessive liabilities on failed programs like the 787, and the other huge liabilities Boeing will face if it is ever held to account for even a few of the ongoing frauds by its management, many of which the public and stock holders are unaware of (thanks to Boeing's "the sky is rosy" when it is actually falling on their heads P.R. lies).
Investors in Boeing stock really have nothing to complain about but their own bad decisions if they lose half or all their investment. While Boeing has carefully hidden risks to the company for as long as possible and hyped minor good news as it happens, there is ample evidence in the public domain of just how badly Boeing is managed and how often (even only being caught for a very small percentage of their frauds) they intentionally run afoul of the law in pursuit of ever greater value to cover for their incompetence. And Boeing employees who see how badly the company is run from the inside like I did every day there have even less to complain about for their losing money if they dare invest in Boeing stock.
In fact, the stock price getting down to the actual value of the company (value of plant and equipment if liquidated--about $29) would be a good thing, but it getting down to zero and staying there would be even better, for several reasons.
Only then would its current incompetent and corrupt management stop mismanaging the company for only their stock option value price, and clean their management house and actually start focusing on managing the company's business itself.
Current Boeing Management doesn't care what the company does. They could be a note paper with temporary adhesive backing manufacturer for all they care. All they care about is profits and their effect on their stock options' value.
That is one reason they are so corrupt and incompetent in running Boeing--a company with many public safety and national security critical products that urgently needs competent management that care at least as much about public safety and national security as they do about the bottom line.
Obviously, the country and Boeing airplane passengers and crew would all be much safer if the current Boeing Management were running a "note paper with temporary adhesive backing" manufacturing company rather than Boeing.
It is finally clear that Boeing Management is so corrupt and incompetent that they can't even manipulate the one number they care about at Boeing above all others--the stock price.
Sure, their corruption has no doubt padded the bottom line and made the stock price double what it should be, but it should be evident to everyone that even their level of corruption will never bring the stock price up to their personal stock option value goals--or investors goals.
Corrupt and incompetent Boeing Management is in a bad personal place right now--the only way to bring the stock price back up now from an abysmal ride to where it should be considering their mismanagement is the only legal or illegal thing they haven't yet done--replacing themselves.
President Obama’s Gulf Oil Disaster Oval Office Speech Gives Prescription for Reform of Ongoing Boeing/FAA Corruption Similar to the Oil Industry/MMS Corruption Partly Responsible for the Disaster
President Obama’s Oval Office speech to the nation on June 15th was notable in itself, but it is also notable for another reason—it contained an outline of what should be a major part of the action needed to finally correct the Boeing/FAA corruption that places millions more lives at risk than the Oil Industry/MMS fraud ever did.
From the transcript of that address to the nation:
And you can watch the video at this link.
Remarks by the President to the Nation on the BP Oil Spill
8:01 P.M. EDT
…Tonight I’d like to lay out for you what our battle plan is going forward: what we’re doing to clean up the oil, what we’re doing to help our neighbors in the Gulf, and what we’re doing to make sure that a catastrophe like this never happens again…
The third part of our response plan is the steps we’re taking to ensure that a disaster like this does not happen again. A few months ago, I approved a proposal to consider new, limited offshore drilling under the assurance that it would be absolutely safe –- that the proper technology would be in place and the necessary precautions would be taken…
One place we’ve already begun to take action is at the agency in charge of regulating drilling and issuing permits, known as the Minerals Management Service. Over the last decade, this agency has become emblematic of a failed philosophy that views all regulation with hostility -- a philosophy that says corporations should be allowed to play by their own rules and police themselves. At this agency, industry insiders were put in charge of industry oversight. Oil companies showered regulators with gifts and favors, and were essentially allowed to conduct their own safety inspections and write their own regulations.
When Ken Salazar became my Secretary of the Interior, one of his very first acts was to clean up the worst of the corruption at this agency. But it’s now clear that the problem there ran much deeper, and the pace of reform was just too slow. And so Secretary Salazar and I are bringing in new leadership at the agency -- Michael Bromwich, who was a tough federal prosecutor and Inspector General. And his charge over the next few months is to build an organization that acts as the oil industry’s watchdog -- not its partner.
So one of the lessons we’ve learned from this spill is that we need better regulations, better safety standards, and better enforcement when it comes to offshore drilling.
8:18 P.M. EDT
The part of the address that is so uber-appropriate to the urgently needed reform of eerily similar levels of corruption between Boeing and the FAA is repeated as follows:
“Over the last decade, this agency (the MMS) has become emblematic of a failed philosophy that views all regulation with hostility -- a philosophy that says corporations should be allowed to play by their own rules and police themselves. At this agency, industry insiders were put in charge of industry oversight. Oil companies showered regulators with gifts and favors, and were essentially allowed to conduct their own safety inspections and write their own regulations.
When Ken Salazar became my Secretary of the Interior, one of his very first acts was to clean up the worst of the corruption at this agency. But it’s now clear that the problem there ran much deeper, and the pace of reform was just too slow. And so Secretary Salazar and I are bringing in new leadership at the agency -- Michael Bromwich, who was a tough federal prosecutor and Inspector General. And his charge over the next few months is to build an organization that acts as the oil industry’s watchdog -- not its partner.”
This passage is a key guide on what must be done to reform endemic Boeing/FAA Management corruption before it costs even more lives.
It will take only one more Boeing airliner crash as a result of the noted corruption to far exceed the death toll of the MMS involved mine disaster and the BP oil rig explosion disaster.
Only a few key words need to be changed, and President Obama’s Administration could use the exact same procedure to investigate and reform ongoing Boeing/FAA Management corruption that endangers millions of people every day:
“Over the last decade, this agency (the FAA) has become emblematic of a failed philosophy that views all regulation with hostility -- a philosophy that says corporations like Boeing should be allowed to play by their own rules and police themselves. At this agency, industry insiders were put in charge of industry oversight. FAA Management subverting their public safety duties while at the FAA for the benefit of Boeing were later hired by Boeing for multiples of their already high FAA salaries. Boeing showered regulators with gifts and favors, and were essentially allowed to conduct their own safety inspections and write their own regulations by corrupt FAA Management.
One of our very first acts needs to be to clean up the worst of the corruption at this agency. But it’s now clear that the problem there runs much deeper, and the pace of reform needs to be done with a sense of urgency that the endangered public safety from the corruption requires. And so (fill in name of uncorrupted official to handle reform—anybody but Transportation Secretary Ray Lahood, who was a bad choice for the post and is too business oriented to be trusted with such crucial reform) and I are bringing in new leadership at the agency – (enter name of new FAA Administrator) who was a tough federal prosecutor and not from the DOT Inspector General’s office, which has been implicated in covering up the noted Boeing/FAA corruption. And his charge over the next few months is to build an organization that acts as the transport aircraft manufacturing industry’s watchdog -- not its partner.”
There it is—the prescription for Boeing/FAA Management corruption reform before it costs even more lives, the outline of which the President gave in the BP Oil spill address.
BP and MMS may be in the news as bad guys of the moment, but they don’t remotely compare to the level of fraud and number of lives in jeopardy from the corrupt Boeing/FAA Management relationship negating safety and letting largely uninspected as required commercial airplanes and their military derivatives deliver riddled with defects to customers.
Let’s hope the Obama Administration sets its sights on the corrupt FAA Management next after MMS. Without a corrupt FAA Management, Boeing would not be able to get away with the corrupt Quality Management System and other undeserved delegations it has gotten as a result of corrupt FAA Management letting Boeing have those things for a plum job at Boeing or an industry association after retirement at 20 years (or less if the offer is good) as essentially a Boeing Management mole within the FAA hierarchy.
Certainly, intentional noncompliance at Boeing has everything to do with Boeing subverting its quality system both legally and illegally under such always approving “FAA management eyes.” The disposal of my report pretty much uninvestigated (which would have stopped Boeing QA Management corruption forever if in fact it was actually investigated thoroughly and impartially) shows the same corruption as at the oil industry/MMS exists between Boeing and FAA Management. And the same fix as President Obama detailed above could separate the joined at the hip corruption going on between Boeing and FAA Management, finally restoring the required impartiality and competence of the FAA that could finally make Boeing build airplanes per quality, safety, and conformity requirements. Passenger and crew safety would then actually be ensured, and would not depend on mere luck as it does now.
And, with FAA Management still to this moment so utterly corrupt and biased toward enabling Boeing and industry corruption, all delegations of any kind given by them to Boeing are bogus. As a first step in any unbiased reform of FAA Management corruption, they should all be rescinded, the FAA reformed, and then all work done under them verified independently by new ethical FAA employees.
Then, and only then, should such delegations be considered ever again for Boeing—but with a major change from prior FAA corrupt practices—only given to Boeing when they demonstrate they actually are compliant enough and have enough integrity to deserve such delegations. Not, as in the past, with FAA officials delegating FAA functions to corrupt Boeing Management just because Boeing Management wanted it, and it was a mutual goal of “working together in corruption” Boeing and FAA Management.
The Oil Industry/MMS fraud is far from unique. The Boeing/FAA fraud has potentially far more dire consequences as noted. And as G. Florence Scott proves in her excellent blog:
"Such industry/agency fraud is more the norm than the exception, even endangering national security, as I've noted elsewhere that some of Boeing's frauds I've detailed and blew the whistle on have.
Hopefully Obama will "pick the low hanging fruit" in picking which of the many agencies corrupted over the past ten years need reform to act like their mandated roles as watch dogs--not just as employment agencies for connected agency officials to prove their deference to Boeing over the public interest of safety like the FAA is today.
That "low hanging fruit" corrupt agency for reform that would save many lives and route out some of the worst corruption is no surprise--it's the FAA. And the Transport Airplane Directorate (TAD) at the FAA would be a very good place in the agency to start."
The verdict is in.
Followers of my blog will note that I stated in my February 9, 2010 blog that I expected an open investigation by the FAA to prove whether or not the FAA has reformed, or is still as corrupt as it ever was. Was the FAA still “taking bullets” for corrupt companies they are supposed to be independently and thoroughly overseeing for the safety of the public by only pretending to do their jobs? Were they still giving corrupt companies clean bills of health when witnesses to that corruption affecting public safety reported those companies' fraud to them for investigation, just as happened in the 2002/2003 “investigation” of Boeing per my report of QA Management fraud across the enterprise? Or had they reformed, now doing their jobs impartially and ethically?
Just a few days ago I learned the outcome of that investigation of my detailed report, and the news is not good for those that want any level of integrity of oversight of the commercial airplane industry by the FAA.
During their “investigation” of the noted detailed report, the FAA’s Transport Airplane Directorate (TAD) Management deliberately chose to not investigate and prove any of the numerous violations in the report. They deliberately chose to protect that company from a real investigation and enforcement action and instead chose to prove something they seem not to care anymore that the public knows—that they, the FAA, are themselves so corrupt that their future employment prospects and other benefits gained in industry after they leave the FAA are much more important to them than doing their jobs of protecting public safety that we entrusted them to do.
And the outcome of the noted just completed investigation proves that the FAA is even more corrupt than it was in 2002/2003, when they literally fought to intentionally ignore as many of the 382 violations at Boeing that I had reported to them as they could possibly get away with. They actually only investigated 8.05% of those specific, valid, and meticulously documented violations--only 31 items out of the 382. And those 31 items are probably an overly optimistic number (on my part) that they had investigated in any way. There was legitimate evidence I had that those 31 items had in fact been investigated by the FAA. The problem with even that low number of the 382 that the FAA investigated?--I only have evidence that those 31 were partially investigated. The true number that were actually completely investigated is some subset of those 31. And the number of those completely investigated serious violations that were actually fixed is even a smaller subset of that. So, in the end, what was the actual number of those 382 items that the FAA investigated and ensured were fixed? 8%? No. I have evidence of several of the noted items not being fully investigated. 7%? 6%? 5%? How many of the remaining were actually fixed by Boeing and verified by the FAA (the minimum requirement of corrective action (C/A))? 4%? 3%? 2%? You see where I am going. Did they actually investigate and ensure C/A for even 1% of the items I reported to them, many of which were safety critical items? That would be only 4 of the 382 items! The other 378 items the FAA would have never investigated and/or verified were fixed by Boeing.
Your guess is as good as mine. Were as many as 378 of the items never investigated or fixed? Or was it as few as 351 of those items that were never investigated or fixed? Is there really much difference between 351 and 378 of those (many safety critical) items never being investigated and fixed on most or all Boeing airplanes? The answer is actually a counter-intuitive "yes." Even one of the items I reported to the FAA being fixed could save many lives. Just one example item in my report was responsible for thousands of defects on Boeing in-production and delivered (that people were flying on) airplanes, with literally hundreds of critical defects per commercial jet.
In the end, however, they had to confirm several serious violations by Boeing from those 382 items to make their investigation look remotely believable, as they knew that I wouldn’t give up on trying to get them to do their safety critical jobs of investigating the Boeing QA Management fraud I witnessed. They did so reluctantly, as doing their jobs against a company as powerful and as "revolving door friendly" to former FAA Management as Boeing could easily nix their planned lucrative quid pro quo post FAA retirement jobs at Boeing.
This time they didn’t even put up the appearance of doing their jobs of investigating serious industry fraud that they had tried to do back then—they just denied any existence of the reported fraud--fraud that the person that sent them the report had described in detail, and which that person had witnessed first hand.
Troubling indeed. The Minerals Management Service (MMS) partially behind the recent mine disaster and the BP rig explosion and spilling of millions of gallons of crude in the Gulf is getting reformed. For some reason the FAA is getting a pass on reforming its corrupt ways, and is even sinking further into the abyss of “working together” FAA/industry corruption that negates their public safety mission.
It's interesting that the FAA “fell on its sword” and killed what little it might have had left of its integrity with the noted recently completed “investigation.” The corrupt company it concerned was minute compared to the size of Boeing. Conceivably, they wouldn’t have the pull with the FAA to get the same service Boeing gets as far as bogus investigations of whistleblower reports are concerned. However, much of their work was on Boeing parts, so maybe the FAA extended the courtesy to rig investigations for Boeing to them so that no discrepant Boeing parts shipped by the reported company to Boeing need be fixed and therefore slow down production at their future hoped for employer Boeing. Strange, but the report didn’t allege Boeing had anything to do with the corruption, or even knew they were intentionally being shipped defective parts by the company that was the subject of the report.
But I guess corrupt management at the FAA were just being extra accommodating to what they thought Boeing would want the investigation outcome to be, or they have extended their corruption deeper into the supplier base, hoping to enhance their employment prospects and other favors from industry after retiring from the FAA by doing so.
Eerily, a big part of the responsibility for the noted report nixed from being actually investigated fell on the same FAA employee, Christopher “Chris” Spangenberg, Manager of the eminently corrupt Boeing Certificate Management Office (CMO) at the TAD. Mr. Spangenberg played a big part in also nixing a real investigation of Paul Grauber's report to the FAA of QA fraud at his former employer (also a Boeing supplier).
Mr. Spangenberg rose to that position on January 4th of this year, replacing Jeff Kephart, who formerly provided such service for Boeing as head of the TAD’s Boeing CMO. Where Mr. Kephart went I do not know. Perhaps he was promoted in the FAA, actually retired, or left to cash in on his service with private industry. Tracking the revolving door at the base of FAA corruption is obviously a major interest of mine. Before Kephart, Kevin Mullin, who played a major role in nixing my report of Boeing QA Management fraud, had the position. If anyone knows where these people (or any other manager who has left the FAA) went after the FAA, please send me an email.
Perversely, corruption pays at the FAA. Others involved in nixing my report of Boeing QA Management corruption were Ali Bahrami, K C Yanamura, and Peggy Gilligan. All have been promoted since then.
Ali Bahrami now runs the eminently corrupt TAD, and he was responsible for overruling the FAA technical experts and allowing the 787 to be even more unsafe when struck by lightning than it already was just so Boeing could meet its dispatch reliability goals for the airplane. I have heard rumors that Bahrami was considering retirement at one time. If true, he likely postponed retirement in order to be the person to usher through the 787 to certification no matter how unsafe it is. Granting Boeing Type and Production Certificates would be pure gold to him after FAA retirement. Perhaps he did plan to retire earlier (when granting of Type and Production Certificates for the 787 were originally scheduled), but 787 Program delays have delayed that. Such a gift to Boeing would look great on his resume for a Boeing job post FAA retirement, however no resume or even a job application will likely be required when he leaves the FAA, just like the case of former FAA official Tom McSweeney.
You’ve got to wonder what kind of greed causes these people to throw public safety “under the airplane” for more money post-FAA retirement in quid pro quo jobs in industry that they served instead of the public. FAA Aviation Safety Inspector jobs (the lowest level in the TAD hierarchy) pay from 90-110 grand a year. Their managers make 110-130 grand a year. Spangenberg makes more than that. His pay range is up to 165 grand a year, I believe. Bahrami is at that level or much more. For any of us that were in the middle class, that level of pay seems like more than any normal person could want or need. But, for FAA Management, apparently it is not enough. Perhaps it is seeing some of the high level Boeing executive lifestyles that they see in the course of their jobs that makes them want the level of income to sustain that kind of lifestyle, a lifestyle just not possible, apparently, on a "meager" $200,000 a year federal FAA Management job plus great benefits.
The TAD is more corrupt than ever. As of this moment. They just proved it themselves. As a consequence, the 787 will be the first uncertified commercial airplane to be produced, as the TAD is “overseeing” and “certifying” the 787 Type and Production Certificates.
Those certificates will be meaningless as far as certifying the safety or conformity of the 787, for, as I wrote in the previously noted blog about Paul Grauber:
“A certificate certifying integrity given by an agency without any integrity has no integrity.”
Consequently every 787 flight in service will be an experimental flight, and all passengers and crew on board will be in far more danger than they would be on any other airplane, even assuming each airplane built was inspected properly to quality, safety, and reliability requirements (which none will be absent the corrupt FAA reforming the ongoing Boeing QA Management corruption detailed on this site, which is as likely as the sun not coming up tomorrow).
If you ever wanted to be a flight test pilot, and feel the danger and thrill as you fly an untested, uncertified, largely uninspected airplane though its paces, just book a flight on a 787 when it enters service. They won’t let you handle the controls, but you can experience that “thrill” by just being on board one of those experimental flights, brought to you courtesy of Boeing/FAA corruption.
A comment on this blog entry by David Padilla:
My name is David Padilla. I worked at the Ridley Park, Pennsylvania IDS (Integrated Defense Systems).
I was wrongly fired from my job on June 17, 2009. All the policies and procedures which Boeing runs their company by were not followed. I could not have any representation present and I was not allowed to contact Human Resources.
My supervisor gave me a 30-day review and I was not allowed to touch and read the review he wrote. He kept the papers covered with his hand and then insisted that I sign it. I refused to sign it without reading it and he also refused to give me a copy of the review. My rights were violated. Managers are responsible for creating an open and honest environment in which employees feel comfortable in bringing issues forward. Retaliation against employees who raise genuine concerns will not be tolerated. I could not trust Darec Alliston, my supervisor, due to the fact that he was doing the same as the rest of the employees.
The day of orientation when I was hired HR was there and said if by any chance you have problems with a supervisor for retaliation of any reports, then we need to report it. When I did report that employees were breaking policy, I got retaliation from the department I worked in, fellow employees and supervisor. They proceeded to name call, referring to my Latin nationality "wet back," and calling me stupid and slow, referring to my disability. I went out on medical leave due to all the harassment I was receiving. I brought this to HR's attention and nothing was done. When I came back from medical leave on 6/17/09, I was terminated at 12:30 p.m. No paperwork was given to me at the time of termination. My probation had not been met yet due to medical leave.
When I was in the hospital, Ted Moore kept in touch with my wife, Pamela. He assured her that my position was secured and I would still have a job when I got out of the hospital. He told her this more than once. He also stated that I was doing an excellent job for Boeing and not to worry, just get better. This was after the 30 days I had been employed.
I feel I was discriminated against and I would like to have an internal investigation on the matter. I notified the union UAW 1069, Tony Forte.
There are a lot of employees in this organization that abuse the company time and property. If you check e-mails in Supervisor Darec Alliston's crew, you will find evidence of non-work related videos and web sites. I did report this and I was retaliated against.
Attached you will find reports of what I turned in to Human Resources. I work slow because of disability, Please review and let me know if you have any questions.
I have a lot more information on this matter if you wish to contact me, please feel free to do so.
The Last Inspector