02:37 PM EDT, 03/14/2024 (MT Newswires) -- Boeing ( BA ) became the subject of criticism of Federal Trade Commission Chair Lina Khan who called the company "too big to fail" during a speech at the Carnegie Endowment for International Peace on Wednesday.

Noting that Boeing's ( BA ) 1997 merger with rival McDonnel Douglas led to a slowing down of innovation and reduced product quality, the FTC Chair lambasted US policies that enabled consolidation in the aerospace industry.

"The new post-merger Boeing ( BA ) decimated its workforce, off shored production and demanded wage concessions. [..] Boeing ( BA ) effectively became too big to fail and a point of leverage for countries seeking to influence US policy making," Khan said in prepared remarks.

Khan also drew parallels between industry consolidation, IBM ( IBM ) and AT&T ( T ) which faced antitrust enforcement in the 1970s leading to increased competition in the industry.

Boeing ( BA ) did not immediately respond to a request for comment from MT Newswires.

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