US senators on Tuesday blasted Boeing's Chief Executive Dave Calhoun with inquiries about his compensation, Boeing's safety practices, and why he plans to retire at year's end instead of resigning immediately, overshadowing his safety remorse during a hearing before the Senate Permanent Subcommittee on Investigations.
Boeing's CEO Grilled Over Safety Woes
The hearing marked the first occasion where Calhoun faced questioning from lawmakers, drawing attention to Boeing's deteriorating safety reputation and the CEO's intention to resign by the end of the year amidst a restructuring of Boeing's management.
In response to tough questioning from Republican Senator Josh Hawley, who queried why he had not resigned and accused him of strip-mining Boeing despite earning a multimillion-dollar pay package, Calhoun only asserted that he was proud of every action his company has taken so far.
Prosecutors must notify a federal judge in Texas of their decisions by July 7. In May, the Justice Department determined that Boeing had not adequately developed, implemented, and enforced a compliance and ethics program, which was required under a deferred prosecution agreement following the fatal crashes.
Calhoun accepted responsibility for the incidents that have plunged Boeing into crisis over the past five years, admitting that a manufacturing defect caused the January 5 Alaska Airlines door plug incident. Boeing also acknowledged responsibility for the development of a critical software system associated with the 2018 and 2019 fatal crashes in Indonesia and Ethiopia, resulting in a total of 346 fatalities. Calhoun told the reporters of his commitment to transparency. He turned to the families of the crash victims as he entered the hearing room, expressing his apologies for the deeply distressing grief, adding Boeing's full dedication to addressing safety issues.
Boeing's Whistleblowers
Boeing's chief engineer, Howard McKenzie, minimized safety worries regarding hundreds of incorrectly tightened fasteners found on certain widebody 787 jets, a discovery initially reported by Reuters recently. McKenzie acknowledged that the fasteners had been torqued incorrectly but stated that Boeing's initial analysis indicated they were safe.
Last week, Boeing informed the US Justice Department that it believed it had not breached a deferred prosecution agreement, which protects the company from criminal charges related to the crashes.
Senator Blumenthal criticized Boeing's focus on quarterly earnings calls instead of long-term innovation, emphasizing the need for the company to prioritize future generations. He mentioned that a new whistleblower, Sam Mohawk, who works as a quality assurance investigator at Boeing's 737 factory in Renton, Washington, came forward after a previous whistleblower testified in April.
Blumenthal revealed that Mohawk informed the panel about systemic issues concerning potentially defective parts and inadequate documentation handling at Boeing. According to a committee report released before the hearing, Mohawk stated that his responsibilities dealing with non-conforming parts became significantly more challenging after the resumption of MAX production in 2020 got involved with two fatal crashes. The report also mentioned that Mohawk submitted a related claim to the Occupational Safety and Health Administration (OSHA) in June.
Boeing's Commitment to Safety Standards
Boeing issued a statement indicating that it is currently reviewing the claims it became aware of on Monday. Boeing emphasizes the safety of its aircraft and the flying public as its foremost priority. Boeing also noted that it has expanded the size of its quality team and significantly increased the number of inspections per airplane since 2019.
Since the mid-air blowout of a door plug on a 737 MAX 9 jet on January 5, regulators and airlines have intensified their scrutiny of Boeing. The National Transportation Safety Board reported that four critical bolts were absent from the Alaska Airlines aircraft, and the Justice Department initiated a criminal investigation in response to the incident.
Boeing also submitted a quality improvement plan to the FAA on May 30, after being given a 90-day deadline by Whitaker to create a thorough strategy addressing systemic quality-control issues. Whitaker has also prohibited Boeing from increasing production of the MAX aircraft.
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