Sector Spotlight: Boeing enters non-prosecution agreement with DOJ

Business Insider

07-06-2025

Welcome to the latest edition of 'Sector Spotlight,' where The Fly looks at a new industry every week and highlights its happenings.
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INDUSTRIAL SECTOR NEWS: Lime and Uber (UBER) have signed a new multiyear deal to let Uber feature Lime's shared bikes and scooters on its ridehail app, The Verge's Andrew J. Hawkins wrote. The deal was set to expire in 2025.
Uber CEO Dara Khosrowshahi said the company is in the 'study phase' of using stablecoins as a way to transfer money worldwide, Bloomberg's Natalie Lung and Tom Giles reported. Stablecoins seems to have 'a practical benefit other than crypto's historic value,' the CEO said during an interview at the Bloomberg Tech conference San Francisco. Khosrowshahi added that the stablecoin is 'quite promising especially for global companies' since it can help cut costs of moving money around among different countries.
Founders Fund has led an enormous funding round in defense technology startup Anduril with a $1B investment as part of a new $2.5B round, TechCrunch's Julie Bort wrote. Existing investors also took part in the funding round for the company, which was founded by Oculus VR founder Palmer Luckey, the author said, citing an Anduril spokesperson. The defense tech startup has now doubled its valuation to $30.5B with this Series G increase, the author noted.
RTX (RTX) and Northrop Grumman (NOC) announced four successful tests of flight-ready Highly Loaded Grain solid rocket motors for the U.S. Army's Next-Generation Short-Range Interceptor. HLG is a solid propellant technology for rocket motors that provides longer burn time and more energy output than conventional solid rocket motors, which extends the range of Raytheon's NGSRI offering compared to other missiles.
Jacobs (J) was selected to deliver design, engineering and environmental services for Boeing's (BA) multi-billion expansion at its St. Louis, Missouri, campus. Designed to nearly double Boeing's regional manufacturing footprint, the 1.1M square-foot expansion will support advanced assembly facilities and the associated post assembly operations center for future generations of advanced aircraft. Site construction is underway and will be completed in multiple phases between 2026 and 2030.
Uber, in a regulatory filing, announced that on May 31, appointed Nikesh Arora to the board. 'Nikesh is a globally respected business leader with deep experience across technology, finance, and cybersecurity,' said Ron Sugar, independent chairperson of the board. 'His leadership in scaling innovative businesses and navigating complex international markets will be invaluable as Uber continues to grow and evolve.' Arora has served as the chairman of the board and CEO of Palo Alto Networks (PANW) since June 2018.
According to a regulatory filing, Boeing entered into a non-prosecution agreement with the U.S. Department of Justice that, subject to court proceedings, resolves matters relating to the Department's determination that the company did not fulfill its obligations under the previously-disclosed deferred prosecution agreement entered into by the company and the Department on January 6, 2021. Pursuant to the NPA, the company is subject to a $487.2M overall criminal monetary penalty, $243.6M of which was paid in 2021 pursuant to the DPA and the remaining $243.6M of which was included in amounts expensed by the company in 2024 pursuant to the proposed plea agreement between the company and the Department filed with the U.S. District Court for the Northern District of Texas on July 24, 2024. The NPA also requires the company, among other things, to pay $444.5M in additional compensation to the heirs and/or beneficiaries of those who died in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents, to invest $455M in the company's compliance, safety, and quality programs through the end of the term of the NPA, to retain an independent compliance consultant to assess the company's progress regarding remediation and implementation of the compliance measures described in the NPA and the attachments thereto, to continue to implement a compliance program, and to continue to undertake a review of its internal controls, policies and procedures. The Department agreed that it will not further criminally prosecute the company for any conduct described in the NPA provided that the Company performs all of its obligations under the NPA, including those described above. The NPA has a term of two years from the date on which the company retains the independent compliance consultant, unless the NPA is extended or terminated earlier as described therein.
China is considering placing an order for hundreds of Airbus (EADSY) aircraft as soon as next month, with deliberations underway with Chinese airlines about the size of the potential order, Bloomberg's Siddharth Vikram Philip and Danny Lee reported. The deal could involve around 300 planes, including both narrowbody and widebody models, according to people familiar with the matter.
Kratos Defense & Security Solutions (KTOS) and GE Aerospace (GE) announced a formal teaming agreement to advance propulsion technologies for the next generation of unmanned aerial systems and Collaborative Combat Aircraft-type aircraft.
Eaton (ETN) and Siemens Energy (SMNEY) have announced a fast-track approach to building data centers with integrated onsite power. They will aim to address market needs by offering grid-independent energy supplies and standardized modular systems to facilitate data center construction and deployment. The collaboration will enable simultaneous construction of data centers and associated on-site power generation with grid connection and the integration of renewables to meet regional regulatory requirements, if required. Siemens Energy's modular and scalable power plant concept's standard configuration generates 500 MW of electricity. Based on its modular approach, the size of the plant can be scaled up and down. In the future, it can also operate in a carbon-neutral manner, provided hydrogen is available and part of the data center's sustainability strategy. Eaton will provide customers with electrical equipment such as medium voltage switchgear, low voltage switchgear, UPS, busways, structural support, racks and containment systems, engineering services and software offerings.
Uber announced the departure of Pierre-Dimitri Gore-Coty, senior VP, delivery, and the appointment of Andrew Macdonald as president and COO, effective immediately. Macdonald joined Uber in 2012 and has served in a range of leadership roles at the company. In his new role as president and COO, reporting to Dara Khosrowshahi, he will be responsible for the company's global mobility, delivery, and autonomous businesses, as well as cross-platform functions like membership, customer support, safety, and more.
Tata Group's Air India is in discussions with Airbus and Boeing for a new aircraft order including around 200 extra single-aisle planes, Tim Hepher, Aditi Shah and Rajesh Kumar Singh of Reuters wrote, citing industry sources.
In an interview with The Financial Times, Boeing CEO Kelly Ortberg said he was working with the Trump administration to ensure the company did not become as 'unintended consequence' of the trade war with China, suggesting countries buy more of its aircraft to reduce their trade deficits with the U.S., Sylvia Pfeifer and Claire Bushey of The Financial Times reported. Ortberg also told the Times the launch of a new aircraft expected to replace its 737 Max was not an immediate priority, adding the 'market is not ready now.'
Saudi Arabia is set to place orders for billions of dollars of Airbus jets as the kingdom balances suppliers in its quest to match the aviation growth of Gulf neighbors, industry sources said, according to Reuters. Leasing company AviLease, which placed an order for 30 Boeing 737 MAX jets during a visit to the region this month by U.S. President Donald Trump, could place a comparable order for Airbus A320neo jets at next month's Paris Airshow.