Boeing, one of the largest aerospace companies in the world, has found itself in hot water once again. The company has agreed to pay a staggering $51 million fine after it was discovered that its foreign employees in China and other countries had downloaded sensitive data related to military aircraft, including fighter jets and attack helicopters. This violation of federal regulations on arms export has resulted in a total of 199 violations.
Between 2013 and 2017, three Chinese employees at Boeing facilities in China downloaded data related to three fighter jet models: F-22, F-18, and F-15. Additionally, technical files about the E-3 airborne warning and control system, the AH-64 “Apache” attack helicopter, the AGM-84E cruise missile, and the AGM-131 short-range nuclear missile were also accessed without authorization. It was also revealed that in 2019, Indian employees working at Boeing’s campus in southern India passed along files containing technical data about Air Force One, the presidential airplane.
Of particular concern was the leak of information to Boeing employees in Russia. At the time these unauthorized downloads occurred, Russia was subject to export controls that restricted its access to military technologies. This raises questions about potential security breaches and the impact it may have had on national security.
It is worth noting that Boeing voluntarily disclosed all of these violations, with a considerable majority of them predating 2020. The company has since made improvements towards compliance and has incorporated numerous measures to strengthen its compliance program. The State Department acknowledged these efforts and factored them into the decision not to propose a higher penalty or additional violations.
As part of the agreement, $24 million of the total fine will be suspended on the condition that the funds are used for remedial compliance measures to strengthen Boeing’s compliance program. In addition, Boeing will be subject to the oversight of a special compliance officer for at least the next two years. This officer will conduct two external audits of the company’s compliance program and implement additional measures to ensure future compliance.
This recent fine adds to the growing list of troubles faced by Boeing, a company that operates in both the defense and commercial aircraft sectors. In January, the Federal Aviation Administration (FAA) ordered airlines to immediately stop flying Boeing’s 737 MAX 9 passenger jetliners after a mid-air emergency event. The incident involved a “door plug” falling off an Alaska Airlines plane, causing a rapid loss of cabin pressure. Fortunately, the pilots were able to make a safe emergency landing. While most MAX 9s have since been inspected and cleared to return to service, the FAA has demanded that Boeing develop a comprehensive plan to address systemic quality-control issues within 90 days.
Boeing’s reputation has taken a hit in recent years, and these incidents only add fuel to the fire. As a major player in the aerospace industry, the company must prioritize compliance and security measures to regain trust and ensure the safety of its products. The fine may be significant, but it serves as a reminder that no company is above the law when it comes to protecting sensitive military technology and adhering to arms export regulations.
