American Scandal - Boeing | Return to Service | 4

Episode Date: September 3, 2024

After a second 737 MAX 8 crash, Boeing executives and leaders at the Federal Aviation Association are under pressure to explain why the MAX wasn’t grounded sooner. The parents of Samya Stumo and other victims demand answers. Boeing fires CEO Dennis Muilenburg, and agrees to pay a multibillion dollar fine. Then, in January 2024, a door plug pops off the side of a 737 MAX 9 in mid-flight, putting Boeing’s safety failures back in the headlines. Need more American Scandal? With Wondery+, enjoy exclusive seasons, binge new seasons first, and listen completely ad-free. Start your free trial in the Wondery App, Apple Podcasts, Spotify or visit wondery.app.link/IM5aogASNNb now.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Hi, this is Lindsey Graham, host of American Scandal. Our back catalog has moved behind a paywall. Recent episodes remain free, but older ones will require a Wondery Plus subscription. With Wondery Plus, you get access to the full American Scandal archive, ad-free, plus early access to new seasons and more. Join Wondery Plus in the W of July 31st, 2019 in Sheffield, Massachusetts. Nadia Milleran and her 19-year-old son, Tor Stumo, are sitting at their kitchen table staring at a video playing on Milleron's laptop. It's a recording of the Senate's Federal Aviation

Oversight hearing, which took place earlier that day. Four months ago, Milleron's 24-year-old daughter, Samia Stumo, died on board a Boeing 737 MAX 8, which crashed in Ethiopia shortly after takeoff. The crash was attributed to the faulty activation of a piece of software called the Maneuvering Characteristics Augmentation System, or MCAS. It's the same error that caused another MAX 8 to crash off the coast of Indonesia just a few months earlier in October of 2019. In the initial weeks after Samya's death, Milleron sank into a deep depression. There were days when she couldn't get out of bed, but the more she learns about the design and certification of the 737 MAX 8, the more that depression has turned to anger. Milleron now believes that both Boeing and the FAA demonstrated clear negligence in the handling of this new plane,

especially in the aftermath of the first Lion Air accident. She thinks the MAX should have been grounded the moment they realized the MCAS software was malfunctioning. And she wants someone to explain why her daughter was allowed to board a plane that was known to have a catastrophic design flaw. was allowed to board a plane that was known to have a catastrophic design flaw. So when Milleron found out that several high-ranking administrators in the FAA were scheduled to testify in front of the Senate Subcommittee on Transportation, she needed to watch. And during this testimony, for more than an hour, FAA officials dodge and weave answering the senator's questions with bureaucratic jargon. It would be boring if it wasn't so infuriating. Then, Senator Susan Collins of Maine leans forward

and asks FAA Safety Chief Ali Barami about a Wall Street Journal article that was published just this morning. According to the article, the FAA ran a risk analysis after the first crash and found an unacceptably high probability of another MCAS malfunction happening within months. Senator Collins wants to know why the FAA didn't take any immediate action beyond just issuing an advisory to pilots, especially if the agency's own analysis found that the software posed an unacceptable risk. It's a million-dollar question.

Milleron reaches across the table and clutches Tor's arm as Barami starts to answer. At first, he just gives a long-winded defense of what he calls the airworthiness directive to pilots. But then he adds something that takes Milleron's breath away. So that was an interim action. We knew that eventual solution would be to have the modification. And based on our risk assessment, we felt that this, we had sufficient time to be able to do the modification, you know, and get the final fix. Miller on looks at Tor, her eyes wide. Did he just say what I think he just said?

No, no, he couldn't have. It sounded like he just admitted that the FAA decided to take a chance, just hope that Boeing could make the fix before another accident happened. There's no way he would say that out loud, would he? Let's rewind. Miller on replays Barami's answer, listening carefully. And based on our risk assessment, we felt that this, we had sufficient time to be able to do the modification, you know, and get the final fix. That is what he said. He doesn't even sound like he has any remorse. It's like this was just another day at the office. Well, it is the government. But Tor, that's not how it's supposed to work. His job is to keep people safe. Instead, he gambled with Samya's life.

And not just her or anyone else on that plane. Everyone who flew on a MAX 8 after the Lion Air crash. Yeah, but remember, this is America. We care more about companies than people. It's unacceptable. They can't get away with this. We need to do something. Like what?

We should go to D.C. Hold a press conference outside the FAA headquarters. When? Right now. It's almost midnight. Well, if we leave now, we can get there early, ready to hold it by noon. What are we going to say? We'll call the FAA out, demand that they admit to the mistakes they made that cost the lives of Samia and hundreds of others, and we'll demand that Barami and Boeing executives go to jail. others, and will demand that Barami and Boeing executives go to jail. Milleron gets up and throws some clothes into a suitcase. Tor follows her lead. Then they pack everything in the car, and even though it's late, they have a long drive in front of them. Once on

the road, Milleron feels energized. She's determined to hold both Boeing and the FAA accountable, make sure that nothing ever happens again like the crash that killed her daughter. Get ready for Las Vegas-style action at BetMGM, the king of online casinos. Enjoy casino games at your fingertips with the same Vegas strip excitement MGM is famous for when you play classics like MGM Grand Millions or popular games like Blackjack, Baccarat, and Roulette. With our ever-growing library of digital slot games, a large selection of online table games, and signature BetMGM service, there's no better way to bring the excitement and ambiance of Las Vegas home to you than with BetMGM Casino. Download the BetMGM Casino app today. BetMGM and GameSense remind you to play responsibly.

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BetMGM operates pursuant to an operating agreement with iGamingOntario. In the past decade, Boeing has been involved in a series of scandals and deadly crashes that have dented its once sterling reputation. At the center of it all, the 737 MAX. The latest season of Business Wars explores how Boeing allowed things to turn deadly and what, if anything, can save the company's reputation. Make sure to listen to Business Wars wherever you get your podcasts. From Wondery, I'm Lindsey Graham, and this is American Scandal.

Music Music When Boeing started designing the 737 MAX 8 back in 2011, they had two mandates in mind that overshadowed all other concerns. They wanted the redesign completed on schedule, and they wanted pilots to be able to fly the plane without any costly training and flight simulators. So when early testing revealed that the MAX 8's nose was prone to pitching up, which could cause the plane to stall, Boeing engineers knew that a time-consuming structural fix was off the table. Instead,

they made the fastest and most cost-effective fix they could. They installed a piece of software called MCAS, which could automatically push the nose of the plane down to prevent a stall. But MCAS was a much bigger change to the plane than Boeing initially let on. The system was also vulnerable to false activations. And because pilots had not been trained to recognize and react to these errors, two 737 MAX 8s crashed within only five months of each other, killing 346 people. But within days of the second crash, the FAA grounded all MAX 8s, and Congress launched an investigation into the plane's design, development, and certification. What they discovered was a corporate culture that prioritized profits over safety,

and ultimately endangered lives. This is Episode 4, Return to Service. It's October 2019 in Washington, D.C., seven months after the crash of the second MAX 8. Representative Peter DeFazio sits at his desk in the Capitol building, making his way through a mountain of emails as he waits for his two o'clock meeting to begin. building, making his way through a mountain of emails as he waits for his two o'clock meeting to begin. DeFazio has represented Western Oregon for over 30 years and is used to the workload. But for the past several months, a disproportionate amount of his time and energy has been spent leading the probe into the crashes of two Boeing planes. As the chair of the House Committee on

Transportation and Infrastructure, DeFazio has long been critical of deregulation at the FAA, and he's especially furious at how the FAA responded to the Lion Air crash. In February 2019, a month before the Ethiopian Airlines crash, DeFazio had specifically asked FAA Safety Chief Ali Barami if the MAX 8 was safe, and Barami had been adamant that there was nothing to worry about, which proved to be a devastatingly inaccurate statement. DeFazio believes that big changes need to be made to the FAA and its relationship to the companies it's supposed to regulate.

But neither Boeing nor the FAA are likely to make these kinds of changes voluntarily, so DeFazio is using his investigation to force the issue. To that end, the Committee on Transportation has set up a secure whistleblower website for current or former employees of Boeing and the FAA to anonymously provide information about MCAS and the certification process for the 737 MAX 8. DeFazio has also ordered Boeing to turn over all relevant documentation. He's assigned a former investigative reporter named Doug Pasternak to comb through it all, looking for any evidence that Boeing deliberately misled FAA regulators about MCAS.

And although it's taken months, Boeing has recently started handing over these documents. So when reporter Pasternak called to request a meeting today, the congressman hoped it meant he'd found something useful. A few minutes before 2 p.m., Pasternak enters DeFazio's office holding a large stack of papers. Ah, the latest from Boeing? Yep, and this one came with a phone call. What do you mean, a phone call? Well, not long after these documents arrived, I received a tip. Someone at Boeing suggested I started looking at a few pages in particular.

Huh? What'd you find? It's a series of text messages written by a test pilot named Mark Fortner. Here, read them yourself. Pasternak hands over a few pages, and as DeFazio reads them, his eyebrows raise. He Jedi mind-tricked the FAA? Yep, sounds like he's even proud of forcing the FAA to accept Boeing's training demands. But keep going, it gets worse. DeFazio reads on until he catches a line that stops him cold. He admits it. I mean, he says he unknowingly lied to the FAA, but he admits he lied about MCAS's capabilities. This is a smoking gun. These messages are the evidence we've been looking for. Well, they are incredibly damning for Mark Fortner.

What do you mean? You think they're setting him up as a fall guy? I mean, I suppose it is suspicious that after months of using every trick in the book, Boeing is suddenly calling you, offering tips about where to find evidence. Mark Fortner is not an especially high-ranking employee. He's just a test pilot. And his team is mainly responsible for writing the manual for the plane. He's already left the company, too. So he is a scapegoat. Well, let me put it this way. I've

searched through everything they've sent. There's a conspicuous absence of documentation from anyone at the senior executive level or above. Well, of course there is. No one at the top ever knows anything about what's going on. So keep digging. We're not going to let this go. DeFazio watches as Pasternak heads out of the office. As a longtime member of Congress, DeFazio has seen how time and again powerful executives in this country are able to shield themselves from any real accountability. Mark Faulkner should pay for his irresponsible actions, but DeFazio is after much bigger fish. While Peter DeFazio pushes for top-level Boeing executives to appear before Congress, Nadia Milleron and the other family members of crash victims continue to demand consequences for Boeing and reforms for the FAA. Milleron's impromptu protest outside FAA headquarters on August 1, 2019

does not end up drawing the press coverage she hoped for. Still, she and other family members have been slowly building public support for their cause. And when Boeing test pilot Mark Fortner's text messages are released to the public in October 2019, the public outcry reaches a fever pitch. Politicians and even stock market analysts call for Boeing's leadership team to be fired. Some Wall Street analysts downgrade Boeing stock and warn that Boeing's total worth could plummet by more than $50 billion. Boeing's total worth could plummet by more than $50 billion. Soon after this, Boeing's board of directors votes to fire the head of the Commercial Planes Division and strip CEO Dennis Mullenberg of his chairman title.

Mullenberg also agrees to testify in televised hearings in front of committees in both the House and the Senate. So when Nadia Milleron, her husband Michael Stumo, and her son Tor hear that Mullenberg is testifying, they decide to make their presence felt. So in the weeks before the hearing, they arrange for 21 of their fellow crash victim family members to come to Washington and show Mullenberg the human cost of his company's decisions. When the day of the hearing arrives, Milleron greets everyone outside the Senate office building where the hearings are taking place. Each family member carries a poster-sized photo of their dead loved ones. Then Milleron and her husband lead the group through security and into room 216,

where aides have reserved several rows of seats for the family members. The families settle in, with the photos resting on their laps. And after a moment, Dennis Mullenberg, his lawyer, and a few other Boeing executives enter the room. They take their seats at a long table facing the Senate bench, their backs to Milleron and the other family members. Before the hearing begins, Milleron leans in and watches Mullenberg intently. She's learned so much about him over the last several months. It feels unreal to be in the same room with the man who could have prevented her daughter's death if only he valued safety as much as profit. She feels herself clenching with anger, so Milleron takes a deep

breath and reminds herself that at least Mullenberg will face questions about his actions today. It's nowhere near full accountability, but it's a start. day. It's nowhere near full accountability, but it's a start. Then the chair of the committee calls the hearing to order, and he immediately starts by noting that both crashes were entirely preventable and that the families deserve answers. Then, about an hour into the hearing, the family members are asked to stand and hold up the photos of their dead loved ones. Milleron stands holding a poster with photos of all the crash victims, while her husband, Michael Stumo, holds up a photo of Samia. Milleron's hands shake as she fights back tears.

Mullenberg swivels in his seat and looks at each photo, a pained expression on his face. Milleron watches as he scans each one. She hopes that Mullenberg registers that each person was more than just a data point. And for more than two hours, Mullenberg faces intense questioning from senators on both sides of the aisle. They grill him on when exactly he learned that MCAS had been omitted from the 737 MAX 8 manual. They ask him when he became aware of Mark Forkner's text messages about having unknowingly lied to the FAA regulators. And they ask if he will support legislation giving the FAA

more oversight over Boeing and other manufacturers. In response, Mullenberg offers vague and evasive answers, relying on passive voice and claiming he couldn't remember whether anyone had told him MCAS wasn't in the manual. The senators remind him that he's the CEO of Boeing and that the buck stops with him. At times, Mullenberg appears to be on the verge of tears, repeatedly promising that Boeing will do better in the future. But he stops short of taking any personal responsibility for the failures that led to two crashes. The next day, in front of Representative Peter DeFazio's committee in the House, of taking any personal responsibility for the failures that led to two crashes.

The next day, in front of Representative Peter DeFazio's committee in the House, Mullenberg offers more of the same evasions and vague promises. It's a frustrating experience for both the families of the victims and the members of Congress who were trying to hold Mullenberg accountable.

But the press coverage of Mullenberg's performance is brutal, describing him as robotic and defensive. Calls for him to resign grow more frequent. And as the MAX remains grounded into December of 2019, Boeing's stock continues to drop, losing $55 billion in value since the Ethiopian Airlines crash. So finally, on December 22, 2019, the Boeing Board of Directors has had enough. It votes to fire Mullenberg as CEO.

To Nadia Milleron and Michael Stumo, it's welcome news. Dennis Mullenberg will no longer be responsible for the safety of air passengers. And hopefully, with all this scrutiny on Boeing's culture, the board will select a CEO who restores the company's focus on safety. But the next day, Boeing announces that longtime board member David Calhoun will take over as CEO. And the choice seems odd to many.

Calhoun trained as an accountant and his resume bears striking resemblance to that of Jim McNerney, the Boeing CEO credited with ushering in the company's problematic penny-pinching ethos. And soon after he's appointed, Calhoun sits for an interview with the New York Times that does nothing to reassure Boeing's critics. In the article, Calhoun blames Mullenberg for all

of Boeing's problems. He never acknowledges that he was on the board for the entirety of Mullenberg's tenure and that he supported Mullenberg right up until the day he was ousted. Calhoun also echoes Boeing's longtime position that pilot error was responsible for the Lion Air and Ethiopian crashes and denies that there are any deeper problems with the culture at Boeing. When asked about the troubling messages from Mark Forkner and others inside Boeing, Calhoun replies, I see a couple of people who wrote horrible emails. Just five days after the New York Times publishes its interview with David Calhoun, Nadia Milleron is in Ethiopia,

riding a bus to the crash site of Ethiopian Airlines Flight 302. riding a bus to the crash site of Ethiopian Airlines Flight 302. It's March 10th, the anniversary of the crash, and she and other family members have come here from all over the world to pay their respects. They gather in a rocky field under several large tents, erected just outside a chain-link fence that surrounds a crater in the dirt. Around the tents, the dusty ground has been sprinkled with thousands of rose petals. At the family's request, no reporters or Boeing representatives are present. Milleran bows her head and joins her fellow mourners in six minutes and 43 seconds of silence.

Exactly how long Flight 302 was in the air before it crashed. In this silence, Milleran thinks about Samia, and about how when she gets back home, she and her husband will have work to do. Dennis Mullenberg may be out, but Boeing's culture of not taking responsibility for its mistakes has not changed. Now Milleron and Stumo need to take their fight to the FAA to make sure that that agency does its job and ensures that the 737 MAX is safe before it ever flies again. On January 5th, 2024, an Alaska Airlines door plug tore away mid-flight, leaving a gaping hole in the side of a plane that carried 171 passengers.

This heart-stopping incident was just the latest in a string of crises surrounding the aviation manufacturing giant Boeing. In the past decade, Boeing has been involved in a series of damning scandals and deadly crashes that have chipped away at its once sterling reputation. At the center of it all, the 737 MAX, the latest season of business wars, explores how Boeing, once the gold standard of aviation engineering, descended into a nightmare of safety concerns and public mistrust. The decisions, denials, and devastating consequences bringing the Titan to its knees. And what, if anything, can save the company's reputation.

Now, follow Business Wars on the Wondery app or wherever you get your podcasts. You can binge Business Wars, the unraveling of Boeing, early and ad-free right now on Wondery Plus. He was hip-hop's biggest mogul, the man who redefined fame, fortune, and the music industry. The first male rapper to be honored on the Hollywood Walk of Fame, Sean Diddy Cone. Diddy built an empire and lived a life most people only dream about. Everybody know ain't no party like a Diddy party, so. Yeah, that's what's up. But just as quickly as his empire rose, it came crashing down.

Today I'm announcing the unsealing of a three-count indictment, charging Sean Combs with racketeering conspiracy, sex trafficking, interstate transportation for prostitution. I was f***ed up. I hit rock bottom, but I made no excuses. I'm disgusted. I'm so sorry. Until you're wearing an orange jumpsuit, it's not real. Now it's real. From his meteoric rise to his shocking fall from grace, from law and crime, this is The Rise and Fall of Diddy. Listen to The Rise and Fall of Diddy exclusively with Wondery Plus. When Nadia Milleran returns to Massachusetts from Ethiopia in mid-March 2020,

she's determined to keep fighting to reform the FAA. But the world she returns to is an entirely different place. The COVID-19 virus is spreading around the world. Hospitals are filling up with infected patients. Lockdowns have been imposed in several countries. And people are bleaching groceries, sewing masks, and concocting their own hand sanitizer. Amidst this global catastrophe, air travel plummets. In April 2020, airline passenger traffic is 95% lower than it was the previous year.

Some airlines ceased their commercial flights altogether. their commercial flights altogether. Health experts hope that the mandated lockdowns will keep the virus under control and that normal activities will be able to resume in the third quarter of the year, but nobody knows for sure. And amidst this uncertainty, Boeing's stock plummets 50%.

The company keeps its Dreamliner plant in Everett, Washington open as long as possible, providing hand sanitizer to employees and scheduling extra cleanings in an effort to mitigate the spread of the disease. But when a worker at the factory dies from COVID, they're forced to close the plant. Boeing has to take out a $13.8 billion loan just to stay afloat. But the pandemic isn't entirely bad for Boeing. COVID pushes the MAX 8 crashes off the front pages and out of the public's mind.

People are much less concerned about the safety of airplanes they're not flying on and much more focused on how to protect themselves from a new, deadly disease. The narrative around Boeing shifts as well. Instead of being an evil company that recklessly gambled with people's lives for profit, Boeing is recast as a legendary American brand, desperately trying to hang on during an unprecedented world event. In this new narrative, Boeing is the victim, not the villain. And all the momentum that's been building towards reforming the FAA and making Boeing more accountable grinds to a halt. Reforming the FAA and making Boeing more accountable grinds to a halt.

But Milleron and her husband Michael Stumo continue to push for reform. And finally, in June 2020, a pair of senators introduce legislation to strengthen the FAA, and the Senate Committee on Commerce, Science, and Transportation schedules a hearing to discuss the proposed law. But to the families of the victims, they don't feel like the bill goes far enough. As written, the FAA is still ceding too much power to Boeing in the process of certifying its planes, and the penalties are not strong enough to deter Boeing from skirting the rules again in the future. So the families want a chance to voice their concerns. Milleran and Stumo and other family members begin vigorously complaining to legislators,

and eventually Stumo is invited to testify. Due to COVID safety protocols, the hearing is scheduled as a hybrid event. FAA Chief Stephen Dixon and Stumo will be testifying in person with only a handful of senators in the room, while the rest of the committee attends remotely. The hearing room will be closed to the press and public, but they'll have the opportunity to watch via live stream. So on the morning of June 17, 2020, Stumo and Milleron walk into a nearly empty hearing room. Milleron is allowed to attend, but has to sit in the back. She's wearing a mask and carrying two posters, one showing a photo of Samia and the other showing all the other Ethiopian Airlines crash victims. Stumo sits next to her,

waiting his turn to testify, as FAA Chief Dixon settles in behind a microphone and removes his mask. Stumo then watches as, one by one, Senators take their turn grilling Dixon. Some of the toughest questions come about two hours into the hearing, when the committee chairman gives the floor to Senator Ted Cruz of Texas. Stumo is looking forward to hearing Senator Cruz speak. Cruz has become an unlikely ally in the fight against both Boeing and the FAA, arguing to the press that the FAA has become what he calls a captured agency, more beholden to Boeing than the American people. Cruz sits at one end of the senator's semicircular dais, flanked by a disposable coffee cup and a container of Purell hand sanitizer.

He looks down at his notes, then fixes his gaze on the head of the FAA. Mr. Dixon, in the process of certification of the 737 MAX, did Bowen lie to the FAA? There's a long pause before Dixon responds. I can't say. I mean, definitely there was incomplete and fragmented information that was provided to us. One of their senior test pilots, Mark Fortner, wrote in a text, So I basically lied to the regulators on knowing that.

So what have you been doing to figure out whether they lied and what they lied about? I'm interested in learning from the past and making the process and the agency more effective and better going forward. Okay, so let's learn from the past. Did the FAA screw up in certifying the 737 MAX? I have concerns that mistakes were made, yes. Mistakes were made? By whom? Don't speak in a passive voice. The manufacturer made mistakes, and the FAA made mistakes in its oversight of the manufacturer. Has anyone at the FAA been fired?

There have been changes in leadership in various areas. No one's been fired over this particular matter up to this point. Has anyone been disciplined over this matter? Not specifically, no. So unknown somebody's made unspecified mistakes for which there have been no repercussions. Is that right? I wouldn't say there have not been repercussions. Well, please tell us the repercussions. Well, the repercussions are that we have significant reforms we're making to the process. We're standing up audit processes and review processes and more robust safety systems

so that we can be more effective in the future. Cruz glances around at the other senators present, clearly frustrated by Dixon's bureaucratic answer. I think the concern this committee has is this. We are not seeing from you any urgency around fixing this problem. You understand, sir, you do not work for the airlines and you do not work for Boeing. You work for the American people. Behind his mask, Stumo can't help but smile at this tongue lashing. He appreciates how Senator

Cruz is holding Dixon's feet to the fire. And then, it's soon Stumos' turn to speak. He steps forward, takes off his mask, and reads a prepared statement, recounting the Ethiopian Airlines crash and the ways that both Boeing and the FAA failed in their duty to keep passengers safe. When he's done speaking, Stumos submits a written statement into the record, arguing that the proposed legislation needs to include six more areas of improvement before he, his wife, and the other crash victim families will support it. His demands include ending the practice of delegating certification responsibilities to Boeing, ending immunity for airline manufacturers, and adding criminal penalties for lying to the FAA. airline manufacturers and adding criminal penalties for lying to the FAA. The senators asked Stumo a few follow-up questions and expressed their condolences. And then the

hearing is over. Stumo and Milleron leave the chamber feeling grateful for their chance to speak, but unsure if the senators or the head of the FAA really heard what they had to say. really heard what they had to say. In December 2020, as part of a larger spending bill, Congress passes the Aircraft Certification Safety and Accountability Act, and President Donald Trump signs it into law. And when they read the text of the new law, victims' families are pleased to discover that it includes some of Stumo's demands. This new law requires increased FAA supervision

over the certification process, civil penalties for any private sector manager pressuring FAA employees, and removing bonuses to FAA staff for helping manufacturers meet their deadlines. But the law still falls short of the full accountability that Stumo, Milleron, and the other family members had hoped for.

But it is a start. Then, just a few days later, the 737 MAX 8 is certified to fly again. It's taken two years, but Boeing has finally fixed the problems with the MCAS software. And on the morning of December 29th, American Airlines President Robert Isom steps aboard the MAX for the aircraft's first flight since it was grounded in March the year before. Isom beams as he walks confidently on board, eager to show everyone that he feels perfectly safe in the MAX. And the nonstop flight from Miami to New York goes off without a hitch. Soon more airlines bring the 737 MAX

planes back into service. And as pandemic restrictions ease and air travel picks up, Boeing anticipates a return to normalcy. The troubles of the MAX seem behind them. So when architect Nicholas Haack boards Alaska Airlines Flight 1282 in Portland, Oregon, on January 5, 2024, he doesn't give a second thought to the fact that he's flying on board a Boeing 737 MAX 9, the latest iteration of the aircraft. He's headed to Ontario, California on a business trip. It's just a two-hour flight, so he settles into his seat, pops in his earbuds, and queues up a podcast about Japan. He and his girlfriend are traveling there later in the year,

and he's trying to learn as much as he can about the place. The plane takes off, and Hawk yawns, clearing his ears. The pressure settles, and the plane levels off. But it's only been in the air for a few minutes when the overhead lights flicker. Hawk and his seatmate exchange a worried glance, because that doesn't seem normal. Then suddenly, there's a loud bang, and Hawk's hat is ripped off his head. A cloud of white vapor rushes through the cabin. Someone in the back yells that there's a hole in the plane and that a boy is being sucked outside. Flight attendants run down the aisle, urging everyone to stay calm. The plane's oxygen masks drop from the ceiling. Hawk grabs his and places it over his nose and mouth, just like the flight attendants instructed. He's watched these demos countless times in his life, but never thought he would

actually have to do it. He can hear his breath echoing in his ears, fast and shallow. A man a few rows back stands up, his two small children in his arms. He screams that they're all going to die. Flight attendants tell people to stay in their seats. And across the way from Hawk, he sees a couple gripping each other's hands as they stare ahead in silence, looks of terror on their faces. The man in front of Hawk is reciting the Lord's Prayer over and over. Hawk's mind begins to spin, imagining his parents and girlfriend learning that he's died in a plane crash. He takes out his phone and texts his girlfriend, telling her that his plane is having problems. He says he loves her and asks her to tell his mom and dad that he loves them. Then Hawk grips

the armrests and closes his eyes, hoping against hope that this plane can land safely in one piece. plane can land safely in one piece. I'm Jake Warren, and in our first season of Finding, I set out on a very personal quest to find the woman who saved my mom's life. You can listen to Finding Natasha right now exclusively on Wondery Plus. In season two, I found myself caught up in a new journey to help someone I've never even met. But a couple of years ago, I came across a social media post by a person named Loti. It read in part, Three years ago today that I attempted to jump off this bridge, but this wasn't my time to go.

A gentleman named Andy saved my life. I still haven't found him. This is a story that I came across purely by chance, but it instantly moved me and it's taken me to a place where I've had to consider some deeper issues around mental health this is season two of finding and this time if all goes to plan we'll be finding Andy you can listen to finding Andy and finding Natasha exclusively and ad free on Wondery Plus join Wondery Plus in the Wondery app, Apple Podcasts, or Spotify. On January 5th, 2024, Alaska Airlines Flight 1282 makes an emergency landing back in Portland

with a gaping hole in its side. There are no fatalities and only minor injuries. But if the incident had occurred while the plane was at a higher altitude, or during a time when crew and passengers were walking around the cabin, the outcome could have been much different. Within hours of the incident, the FAA grounds the 737 MAX 9, and the National Transportation Safety Board launches an investigation into what caused a hole to blow open in the plane's fuselage. Investigators soon learn that what blew off the plane was a panel called a door plug. Door plugs are used to fill the space where an emergency exit door would go if the plane had more seats. They also learned that in September 2023, workers at the Boeing factory in Renton, Washington,

had removed and reinstalled this particular door plug in order to perform maintenance. The investigators come to believe that when the door plug was reinstalled, the workers failed to secure the bolts that held the plug in place. Boeing then makes a shocking admission when they tell investigators that they have a request for maintenance on the door plug, but no record of whether it was inspected after being reinstalled.

This once again raises questions about Boeing's quality control procedures and its commitment to safety. The FAA issues instructions for airlines to check the bolts on their 737 MAX 9s, and as the airlines perform these inspections, they find several door plugs with loose bolts. The FAA then forbids Boeing from expanding production of any new planes in the MAX series until it signs off on their quality control procedures.

Airline executives begin speaking out about their frustrations with Boeing and the repeated problems they've had with their planes. And soon, whistleblowers emerge revealing safety and quality control issues on other models of Boeing planes. CEO David Calhoun does his best to mitigate the impact of these reports. He takes responsibility for Boeing's lapses, vows to step down as CEO by the end of 2024, and even briefly closes down factories and fabrication sites to hold one-day learning sessions on quality. But these actions are received as too little too late. Boeing stock falls by 14 percent, and Congress demands new answers from the company. For Michael Stumo and Nadia Milleron,

this newest incident is a sign that the company still isn't serious about prioritizing safety. It feels like all their advocacy in the wake of their daughter Samya's death was in vain. Whistleblower after whistleblower reports that Boeing's culture is still beholden to shareholders and that employees are reprimanded for speaking out. They tell horrifying stories about the corners cut and compromises made in the quest to keep the stock price high. But there is one silver lining in the renewed focus on Boeing. In January 2021, three years prior, Boeing agreed to pay over $2.5 billion for conspiring to defraud the FAA, a fine levied in part of what's known as a Deferred Prosecution Agreement, under which Boeing will have to maintain a clean safety record.

The money was split between criminal penalty fees, compensation for Boeing's airline customers, and a fund to benefit the crash victims' families. And while $2.5 billion is a lot of money, Boeing's revenue for that year was more than 26 times that number. And the victims' families, who were not consulted about the agreement, felt blindsided, believing that the Department of Justice, which brokered the deal, let Boeing get away with murder. But that agreement also stipulated that if Boeing was found to have broken the law within three years, also stipulated that if Boeing was found to have broken the law within three years,

they would again be open to criminal charges for conspiring to defraud the FAA during the MAX certification process. Based on what the investigators and whistleblowers have revealed about Boeing's actions leading up to the Alaska Airlines incident, the victims' families believe there is ample evidence that Boeing has violated this agreement. So Stumo, Milleron, and other family members push the Department of Justice for a meeting. Many of them have launched their own civil suits against Boeing, but they think criminal charges are necessary to hold the company truly accountable. In April 2024, the DOJ grants their request. They set a closed-door meeting between families and prosecutors. When Michael Stumo and other family members walk into a conference room in DOJ headquarters on

April 24th, they're ready to make their case. A large screen has been set up at the front of the room that shows the video feeds of the family members attending remotely. A lawyer in a tailored suit sits at the head of the table. Other family members trickle in and take their seats. There are about a dozen of them. Parents, husbands, wives, brothers and sisters. Many of them flew in from overseas for this meeting, and their faces are haggard and tired. But as they take their seats, the mood is anxious and tense. They were denied a voice in the Department of Justice's 2021 agreement with Boeing,

and they're still wary of the DOJ's intentions now. But there's an undercurrent of hope among some of the attendees, a feeling that this time, things might be different. When everyone's settled in, the DOJ lawyer kicks off the meeting. Well, thank you everyone for joining us today, and let me start by being frank. It's no secret that many of you were unhappy with a deferred prosecution agreement made with Boeing three years ago. The lawyer looks around the room, and from the family members' faces, he can see this is an understatement. At the time, we felt it was the best way to hold Boeing accountable,

and I wish we could have included you as the victim's next of kin. But because the only charge was defrauding the federal government, you weren't parties to a crime. At this, the family's attorney speaks up. Now, wait a minute. Let's not forget that a Texas court said that the DOJ violated the law by not consulting with the families. They're the ones whose lives were shattered by Boeing's fraud and misconduct. And now because of this latest accident, we believe there's an opportunity to correct past wrong. I understand that. And believe me, we are reviewing everything that's come to light since the Alaska Airlines flight in January. We're taking this

matter extremely seriously. Well, that's all well and good, but the door plug accident was just a wake-up call. It's clear that Boeing's company culture has not changed. The only way it will is if you'll hold them accountable. I understand that too, but we need evidence that Boeing broke the law. Well, let us help you. From our various civil cases against Boeing, we have millions of pages of documents and 200 deposition statements. All we're asking you to do is spend some time looking at the evidence. And you think there's proof they broke the law in those documents. Broke the law? There are 346 people dead. Many of the family members here call that murder. Now look, I know how emotional this is for all of you.

But everyone has to understand that prosecuting Boeing is a big decision. It has impacts on the economy and Boeing's ability to serve as a military contractor. But that being said, I promise you we are looking at every possible avenue to get you some measure of justice. Well, that's what we're looking for, justice. And we think you can find it in those documents. I mean, look around this table. Every one of these people knew and loved people who died in these crashes. In the case of the Ethiopians' flight, many of them worked for the UN, traveling overseas, giving up much of what they knew and loved,

dedicating their lives to making the world a safe and better place. And that should be your job, too. Several hours later, the meeting ends, and the family members leave still feeling uncertain about what might happen next. But for the first time, it does seem like the Department of Justice has actually listened to them instead of just brushing them off. And on May 13, 2024, just weeks after meeting with the families, the Department of Justice notifies a federal court in Texas that Boeing has violated the terms of the Deferred Prosecution Agreement. They argue that the company failed to prevent and detect violations of the U.S. fraud

laws throughout its operations, and it is therefore no longer shielded from criminal prosecution. Boeing denied that it had violated the terms of the deal and said they'd been engaging transparently with DOJ through the three-year period the agreement covered. But still, for the first time, it looks as if Boeing might face real consequences. In June 2024, Congress called Boeing CEO David Calhoun to testify in front of the Senate. In his remarks, Calhoun said that he had heard the criticisms of Boeing's culture loud and clear, but defended the changes the company had made. He said, We are committed to making sure every employee feels empowered to speak up if there's a problem.

Our culture is far from perfect, but we are taking action and making progress. One month later, Boeing agreed to plead guilty to charges of defrauding the government over the two MAX crashes. The company will pay the maximum fine of just over $487 million and is promised to invest an additional $455 million into safety and compliance programs. The company will be under probation for another three years, and an independently appointed compliance officer will ensure that Boeing follows the required safety guidelines. The company could also face additional charges related to the January 2024 door plug incident. And shortly after the guilty plea, on July 31st, 2024, Boeing announced that

they had hired a new CEO. Industry observers responded with cautious optimism to their pick, Kelly Ortberg, a mechanical engineer and former CEO of a company that makes electronic systems for Boeing and other aircraft manufacturers. But the only Boeing employee to face criminal charges following the two MAX crashes was test pilot Mark Fortner. He was accused of misleading regulators about the amount of training pilots would need to fly the MAX. His lawyers argued that he was being scapegoated by Boeing, and in 2022, a jury found him not guilty.

Also, the FAA stepped up their oversight of Boeing. In the three months after the door plug blowout, the FAA placed 30 of its most experienced inspectors in Boeing's factories in Renton, Washington, and Wichita, Kansas. They are expanding hiring with a goal of having 55 inspectors to ensure that Boeing complies with all safety protocols. The new FAA director, who took over in October 2023, acknowledged it would take a long time for Boeing's culture to shift,

but he vowed that the FAA would be monitoring them closely. Meanwhile, millions of people continue to fly on Boeing planes every day, including 737 MAXs. As of March 2024, more than 1,300 MAXs were in operation around the world, and Boeing claims to have orders to build 3,000 more. From Wondery, this is Episode 4 of Boeing for American Scandal. In our next episode, I speak with Scott Hamilton, author of Air Wars, the global combat between Airbus and Boeing, to discuss Boeing's response to increased competition

and how it may have contributed to the company's safety problems. If you're enjoying American Scandal, you can unlock exclusive seasons on Wondery Plus. Binge new seasons first and listen completely ad-free when you join Wondery Plus in the Wondery app, Apple Podcasts, or Spotify. And before you go, tell us about yourself by filling out a survey at wondery.com slash survey. If you'd like to learn more about Boeing and the 737 MAX 8, we recommend the book Flying Blind by Peter Robinson and Reporting on Boeing by Dominic Gates in the Seattle Times. This episode contains reenactments and dramatized details. And while in most cases we can't know exactly what was said, all our dramatizations are based on historical research.

American Scandal is hosted, edited, and executive produced by me, Lindsey Graham, for Airship. Audio editing by Christian Paraga. Sound design by Gabriel Gould. Music by Lindsey Graham. This episode is written by Austin Rackless. Edited by Emma Cortland. Fact-checking by Alyssa Jung-Perry. Produced by John Reed. Managing Producer, Olivia Fonte. Senior Producer, Andy Herman. Development by Stephanie Jensen. Executive Producers are Jenny Lauer-Beckman, Marshall Louis, and Erin O'Flaherty for Wondery.