Monday, May 20, 2024

Boeing getting ready for FAA review, a time without Calhoun

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May 20, 2024 View in browser
 
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By Chris Marquette

Presented by the Travel Tech Association

Quick Fix

— Boeing CEO says the company will soon present its 90-day plan for cleaning house to the FAA.

— Tesla loses key lobbying staffers, the latest in a series of hits for the automaker.

— Expert says U.S. must preempt incidents like the Francis Scott Key Bridge collapse and the Galveston bridge incident.

IT’S MONDAY: You’re reading Morning Transportation, your Washington policy guide to everything that moves. We’re glad you’re here. Send tips, feedback and song lyrics to Chris at cmarquette@politico.com and Oriana at opawlyk@politico.com and follow us at, @oriana0214 and @ChrisMarquette_.

When my whip stop, then my wheels keep spinnin'’”

 

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Travel Technology Association members revolutionized the travel industry, making it transparent, competitive, and affordable. Behind the scenes, our members work with travel service providers to share pricing and availability data with a global audience. This week, Travel Tech decodes the travel industry, highlighting how our members empower consumer choice. Global Distribution Systems (GDS), like Sabre, build travel software that lead to a connected and seamless ecosystem – empowering suppliers, sellers and travelers with greater control, intelligence and convenience. Learn more.

 
Driving the Day

BOEING TO DELIVER 90-DAY PLAN SOON: Boeing CEO David Calhoun told shareholders Friday that the company will meet with the FAA in “a couple weeks” to present how it will address systemic issues with its safety protocols and manufacturing processes. Chris has more from Calhoun’s shareholder pep talk.

— The FAA ordered up this plan from Boeing as part of its probe into the planemaker’s quality control processes, following the Alaska Airlines accident in January when a door plug blew off mid-flight.

That accident is just one piece contributing to the intense scrutiny around Boeing. The company's also facing whistleblower allegations saying it prioritized profits over safety, and a recent Justice Department filing that says Boeing breached a deferred prosecution agreement from 2021 related to the twin MAX 737 8 crashes in Indonesia and Ethiopia that killed 346 people.

Additional hearings are on the horizon.

Electric Vehicles

TESLA LOBBYISTS LEAVE: A cohort of Tesla lobbyists, including its top federal lobbyist, is leaving at a crucial time for the electric vehicle company, as it contends with stiffer international competition.

Hasan Nazar — who led federal U.S. policy for Tesla — is departing, along with policy staffers Patrick Bean and Brooke Kintz, two people familiar with the matter said. It's unclear who now leads Tesla’s federal lobbying arm, Hailey Fuchs reports.

Tesla's Washington office is charged with molding U.S. attitudes on several policy fights, including trade, EV tax credits, infrastructure and emerging regulations of autonomous vehicles.

 

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Infrastructure

OUR FAILING INFRASTRUCTURE GRADE: The March collapse of the Francis Scott Key Bridge in Baltimore and an incident just last week where a bridge near Galveston, Texas, partially collapsed after a barge strike underscores the pressing need to fix up American infrastructure, says Rick Geddes, a professor at Cornell University and director of its infrastructure policy program.

“It seems like it’s highlighting the fragility of a lot of U.S. infrastructure and the threats that U.S. infrastructure faces from both man made and natural threats,” he said. “We’re probably going to see more of this as trade increases.” He said these and other incidents mean infrastructure across the country — including bridges like Baltimore’s — needs to be assessed for resilience.

“Container ships have quadrupled in size since the Francis Scott Key Bridge came into service in 1977,” he said. “That’s an enormous increase in the size of ships, just the amount of trade. But the reassessment of all the infrastructure that could potentially be interacting with those ships hasn’t taken place.”

— He noted that the Biden administration’s signature laws injecting billions into America’s infrastructure are important, but much more is needed.

— Reminder that the American Society of Civil Engineers ranks the overall state of American infrastructure as a C- as of 2021. Updated every four years, ASCE’s report card notes that the country’s “infrastructure gap” — meaning, its needs versus how much the country is spending — is more than $2 trillion over a 10-year span.

 

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Aviation

NEW CEO SEARCH UPDATE: Steve Mollenkopf, chair of Boeing’s board, said on the stakeholder call that finding a CEO to replace Calhoun is his “top priority.” He has created a subcommittee of the board dedicated to the search and has been meeting with investors and customers to get their input.

“We will announce a new CEO once we have completed a thorough and thoughtful process,” Mollenkopf said.

FIVE YEAR AVIATION BILL LAW, BUT WHY NO TRUMPETS? President Joe Biden signed the FAA bill, H.R. 3935 (118), into law late Thursday. And though there was a signing event that included Speaker Mike Johnson and Transportation Chair Sam Graves (R-Mo.), there wasn’t any public White House ceremony — even during infrastructure week.

— Rep. Rick Larsen of Washington, the top Democrat on the House Transportation Committee, said he was told it wasn’t possible to squeeze an FAA bill celebration into the flurry of infrastructure week events: “Coordinating those events and coordinating a White House signing ceremony on top of all that is just not in the cards."

The uncertain timing of when the bill might be finished also didn’t help, Larsen added.

“Frankly, we didn't know we were going to be passing it this week, or last week, or the week after. We didn't know so they really couldn't plan around that," Larsen said. “And I would note that there's $4 billion of airport construction every year for the next five years as part of this bill. And that's a lot of infrastructure getting built.”

— Sam Michel, a White House spokesperson, declined to comment.

GRAVES IS NOT BACKING DOWN: House Transportation Aviation Subcommittee Chair Garret Graves (R-La.) announced Friday that he will run for reelection, despite a Supreme Court ruling allowing Louisiana’s sixth congressional district to be redrawn in a way that favors Democrats.

“As previously stated, we are running for re-election in a district anchored in the Capital Region,” Graves' statement said. “Because of the absurdity of the map, we are looking through these districts to determine where we can best represent the interests and priorities of the people of Louisiana for the next two years until a reasonable map is restored.”

 

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The Autobahn

— “Exclusive: Musk pushes plan for China data to power Tesla's AI ambitions.” Reuters.

— “These Four Words Can Ruin Your Vacation: ‘This Lot Is Full’” Wall Street Journal.

— “Exclusive: Toyota repeatedly halted Mexico plant after suppliers hit by worker shortage, sources say.” Reuters.

— “Child is among 3 dead after Amtrak train hits a pickup truck in upstate New York." AP.

— “GM, LG agree on $150 mln relief for Chevy Bolt EV owners over faulty batteries.” Reuters.

— “U.S. and Chinese automakers are headed in completely different directions." Washington Post.

On the calendar

Nothing on our radar!

Know of an event we should have on our calendar? Let MT know at transpocalendar@politicopro.com.

 

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