Business Finance

CEO of Boeing acknowledges that culture is “far from perfect.”

On Tuesday, US legislators will hear from Boeing CEO Dave Calhoun, who acknowledged that the company’s safety culture is a source of concern following a mid-air incident in January.
Prior to the US Senate subcommittee hearing, he made prepared remarks in which he stated: “While our culture is far from ideal, we are acting and moving forward. We are aware of the seriousness.”

Since an unusable door fell from a brand-new 737 Max aircraft during an Alaska Airlines flight and left a huge hole in its side, the airline has gained attention.In April, Boeing whistleblowers informed the Senate that there were major production problems with the 737 Max, 787 Dreamliner, and 777 models as part of an ongoing inquiry.

However, there have long been worries about Boeing’s views regarding the circumstances of quality control and safety in its factories.Five years ago, the business was heavily criticized following the loss of two 737 Max aircraft in nearly identical incidents that claimed 346 lives.In addition, Mr. Calhoun is anticipated to offer an apology to the impacted families on Tuesday, the first time he has testified before the panel as CEO.He reads a prepared opening statement that begins, “We are deeply sorry for your losses.” “The security of those boarding our aircraft is the most important thing.”

With a $33 million compensation package, Mr. Calhoun is leaving his position as CEO of Boeing at the end of this year, having held the position for less than five years.In 2020, as the business was still in shock after the deadly crashes, he succeeded Dennis Muilenburg as CEO.The Boeing 737 Max was temporarily grounded in October 2018 as a result of the Lion Air tragedy.Thirteen minutes after takeoff from Jakarta, Indonesia, the aircraft crashed into the Java Sea, killing all 189 passengers on board.

Six minutes after takeoff from the Ethiopian capital of Addis Ababa, a Boeing 737 Max operated by Ethiopian Airlines crashed in March 2019.Faulty flight control systems were the cause of both catastrophes, which claimed the lives of all 157 people on board.Family members of those slain in the 2018 and 2019 instances have spoken out; some of them are currently pursuing legal claims against the company.Numerous people intend to be present during the Tuesday hearing.Among them is Zipporah Kuria, who lost her father in the disaster in 2019.

“I flew from England to Washington, DC, to hear in person what the Boeing chief executive has to say to the Senate and to the world about any safety improvements made at that corporation,” she stated in a statement prior to the hearing.She continued, “We will not stop until justice is served.”Senator Richard Blumenthal, the panel’s chairman, made the following statement before to Tuesday’s hearing: “Boeing must repair a broken safety culture and that is management’s task ahead.” “Years of putting profits ahead of safety, stock price ahead of quality, and production speed ahead of responsibility has brought Boeing to this moment of reckoning, and its hollow promises can no longer stand,” he stated.

Calhoun also said in his prepared remarks that he was “grateful” that there were no fatalities in the Alaska Airlines incident. “Coming from this industry, I know all too well that in this industry you always have to get it right,” he wrote. He added that after the incident, the company cooperated with U.S. authorities’ investigation, listened to employees and implemented “stand-offs” at factories to fix any possible problems. The company also presented regulators in May with a plan to improve the quality of its aircraft.