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  • Boeing CEO apologizes to relatives of 737 Max crash victims while defending company’s safety record

    Boeing CEO apologizes to relatives of 737 Max crash victims while defending company’s safety record

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    U.S. lawmakers grilled Boeing’s chief executive Tuesday about the company’s plans to fix its manufacturing problems and its willingness to heed whistleblowers’ warnings, while relatives of people who died in two crashes of the aircraft maker’s 737 Max jetliners were in the room to remind him of what was at stake.CEO David Calhoun appeared before the Senate investigations subcommittee, which is chaired by Sen. Richard Blumenthal, D-Conn., a Boeing critic. Blumenthal opened the hearing by recognizing the relatives of the crash victims and the family of a Boeing whistleblower who died earlier this year.“This hearing is a moment of reckoning,” the senator said. “It’s about a company, a once iconic company, that somehow lost its way.”Calhoun’s appearance was the first before Congress by a high-ranking Boeing official since a panel blew out of a 737 Max during an Alaska Airlines flight in January. No one was seriously injured in the incident, but it raised fresh concerns about the company’s best-selling commercial aircraft.Calhoun sat at the witness table and fidgeted with his eyeglasses as Blumenthal spoke. Sen. Ron Johnson, R-Wisc., thanked the CEO for coming to face “tough questions.” Before giving his prepared opening statement, Calhoun stood and faced the people in the audience holding poster-sized photos of some of the 346 people who died in the 2018 and 2019 crashes.“I apologize for the grief that we have caused,” he said.Senators asked Calhoun if Boeing retaliated against employees who reported concerns and if he had ever spoken directly with any whistleblowers. He replied that he hadn’t but said he would.The toughest line of inquiry came from Sen. Josh Hawley, R-Mo., who repeatedly asked Calhoun about what he did to deserve the size of his salary. Calhoun, who has said he plans to retire at the end of the year, earned $32.8 million in compensation last year.“You’re focused on exactly what you were hired to do, which is that you’re cutting corners. You are eliminating safety procedures. You are sticking it to your employees. You are cutting back jobs because you’re trying to squeeze every piece of profit you can out of this company,” Hawley said, his voice rising. “You’re strip-mining it. You’re strip-mining Boeing.”Asked by Hawley why he had not resigned, Calhoun answered: “Senator I’m sticking this through. I’m proud of having taken the job. I’m proud of our safety record. And I am very proud of our Boeing people.”Hawley interrupted. “You’re proud of the safety record?” he asked with incredulity.Calhoun responded, “I am proud of every action we’ve taken.”Hawley shot back, “Frankly sir, I think it’s a travesty that you’re still in your job.”Hours before Calhoun arrived on Capitol Hill, the Senate panel released a 204-page report with new allegations from a whistleblower who said he worries that “nonconforming” parts — ones that could be defective or aren’t properly documented — are going into 737 Max jets.Sam Mohawk, a quality assurance investigator at the 737 assembly plant near Seattle, claims Boeing hid evidence of the situation after the Federal Aviation Administration informed the company a year ago that it would inspect the plant.“Once Boeing received such a notice, it ordered the majority of the (nonconfirming) parts that were being stored outside to be moved to another location,” Mohawk said, according to the report. “Approximately 80% of the parts were moved to avoid the watchful eyes of the FAA inspectors.”The parts were later moved back or lost, Mohawk said. They included rudders, wing flaps and tail fins — all crucial in controlling a plane.The FAA said it would “thoroughly investigate” claims raised in the Senate report. A Boeing spokesperson said the company got the subcommittee report late Monday night and was reviewing the claims.The 737 Max has a troubled history. After the Max jets crashed in 2018 in Indonesia and 2019 in Ethiopia, the FAA subsequently grounded the aircraft for more than a year and a half. The Justice Department currently is considering whether to prosecute Boeing for violating terms of a settlement it reached with the company over allegations it misled regulators who approved the plane.Video below: Boeing 737 Max investigation explainedMohawk told the Senate subcommittee that the number of unacceptable parts has exploded since production of the Max resumed following the crashes. He said the increase led supervisors to tell him and other workers to “cancel” records that indicated the parts were not suitable to be installed on planes.The FAA briefly grounded some Max planes again after January’s mid-air blowout of a plug covering an emergency exit on the Alaska Airlines plane. The agency and the National Transportation Safety Board opened separate investigations of Boeing that are continuing.The company says it has gotten the message. Boeing says it has slowed production, encouraged employees to report safety concerns, stopped assembly lines for a day to let workers talk about safety, and appointed a retired Navy admiral to lead a quality review. Late last month, it delivered an improvement plan ordered by the FAA.During his Senate appearance, Calhoun defended the company’s safety culture.“Our culture is far from perfect, but we are taking action and making progress,” Calhoun said in his prepared remarks Tuesday. “We are taking comprehensive action today to strengthen safety and quality.”The drumbeat of bad news for Boeing goes on, however.In the past week, the FAA said it was investigating how falsely documented titanium parts got into Boeing’s supply chain, and federal officials examined “substantial” damage to a Southwest Airlines 737 Max after an unusual mid-flight control issue.Boeing disclosed that it hasn’t received a single order for a new Max — previously its best-selling plane — in two months.Blumenthal first asked Calhoun to appear before the Senate subcommittee after a whistleblower, a Boeing quality engineer, claimed that manufacturing mistakes were raising safety risks on two of the biggest Boeing planes, the 787 Dreamliner and the 777. He said the company needed to explain why the public should be confident about Boeing’s work.Boeing pushed back against the whistleblower’s claims, saying that extensive testing and inspections showed none of the problems that the engineer had predicted.The Justice Department determined last month that Boeing violated a 2021 settlement that shielded the company from prosecution for fraud for allegedly misleading regulators who approved the 737 Max. A top department official said Boeing failed to make changes to detect and prevent future violations of anti-fraud laws.Prosecutors have until July 7 to decide what to do next. Blumenthal said at the start of Tuesday’s hearing that he thinks the Justice Department should prosecute the company.Families of people who died in the Boeing Max crash in Ethiopia have pushed the Justice Department repeatedly to prosecute Boeing.“We will not rest until we see justice.,” said Zipporah Kuria, whose father died in the crash. She said the U.S. government should “hold Boeing and its corporate executives criminally responsible for the deaths of 346 people.”

    U.S. lawmakers grilled Boeing’s chief executive Tuesday about the company’s plans to fix its manufacturing problems and its willingness to heed whistleblowers’ warnings, while relatives of people who died in two crashes of the aircraft maker’s 737 Max jetliners were in the room to remind him of what was at stake.

    CEO David Calhoun appeared before the Senate investigations subcommittee, which is chaired by Sen. Richard Blumenthal, D-Conn., a Boeing critic. Blumenthal opened the hearing by recognizing the relatives of the crash victims and the family of a Boeing whistleblower who died earlier this year.

    “This hearing is a moment of reckoning,” the senator said. “It’s about a company, a once iconic company, that somehow lost its way.”

    Calhoun’s appearance was the first before Congress by a high-ranking Boeing official since a panel blew out of a 737 Max during an Alaska Airlines flight in January. No one was seriously injured in the incident, but it raised fresh concerns about the company’s best-selling commercial aircraft.

    Calhoun sat at the witness table and fidgeted with his eyeglasses as Blumenthal spoke. Sen. Ron Johnson, R-Wisc., thanked the CEO for coming to face “tough questions.” Before giving his prepared opening statement, Calhoun stood and faced the people in the audience holding poster-sized photos of some of the 346 people who died in the 2018 and 2019 crashes.

    “I apologize for the grief that we have caused,” he said.

    Senators asked Calhoun if Boeing retaliated against employees who reported concerns and if he had ever spoken directly with any whistleblowers. He replied that he hadn’t but said he would.

    The toughest line of inquiry came from Sen. Josh Hawley, R-Mo., who repeatedly asked Calhoun about what he did to deserve the size of his salary. Calhoun, who has said he plans to retire at the end of the year, earned $32.8 million in compensation last year.

    “You’re focused on exactly what you were hired to do, which is that you’re cutting corners. You are eliminating safety procedures. You are sticking it to your employees. You are cutting back jobs because you’re trying to squeeze every piece of profit you can out of this company,” Hawley said, his voice rising. “You’re strip-mining it. You’re strip-mining Boeing.”

    Asked by Hawley why he had not resigned, Calhoun answered: “Senator I’m sticking this through. I’m proud of having taken the job. I’m proud of our safety record. And I am very proud of our Boeing people.”

    Hawley interrupted. “You’re proud of the safety record?” he asked with incredulity.

    Calhoun responded, “I am proud of every action we’ve taken.”

    Hawley shot back, “Frankly sir, I think it’s a travesty that you’re still in your job.”

    Hours before Calhoun arrived on Capitol Hill, the Senate panel released a 204-page report with new allegations from a whistleblower who said he worries that “nonconforming” parts — ones that could be defective or aren’t properly documented — are going into 737 Max jets.

    Sam Mohawk, a quality assurance investigator at the 737 assembly plant near Seattle, claims Boeing hid evidence of the situation after the Federal Aviation Administration informed the company a year ago that it would inspect the plant.

    “Once Boeing received such a notice, it ordered the majority of the (nonconfirming) parts that were being stored outside to be moved to another location,” Mohawk said, according to the report. “Approximately 80% of the parts were moved to avoid the watchful eyes of the FAA inspectors.”

    The parts were later moved back or lost, Mohawk said. They included rudders, wing flaps and tail fins — all crucial in controlling a plane.

    The FAA said it would “thoroughly investigate” claims raised in the Senate report. A Boeing spokesperson said the company got the subcommittee report late Monday night and was reviewing the claims.

    The 737 Max has a troubled history. After the Max jets crashed in 2018 in Indonesia and 2019 in Ethiopia, the FAA subsequently grounded the aircraft for more than a year and a half. The Justice Department currently is considering whether to prosecute Boeing for violating terms of a settlement it reached with the company over allegations it misled regulators who approved the plane.

    Video below: Boeing 737 Max investigation explained

    Mohawk told the Senate subcommittee that the number of unacceptable parts has exploded since production of the Max resumed following the crashes. He said the increase led supervisors to tell him and other workers to “cancel” records that indicated the parts were not suitable to be installed on planes.

    The FAA briefly grounded some Max planes again after January’s mid-air blowout of a plug covering an emergency exit on the Alaska Airlines plane. The agency and the National Transportation Safety Board opened separate investigations of Boeing that are continuing.

    The company says it has gotten the message. Boeing says it has slowed production, encouraged employees to report safety concerns, stopped assembly lines for a day to let workers talk about safety, and appointed a retired Navy admiral to lead a quality review. Late last month, it delivered an improvement plan ordered by the FAA.

    During his Senate appearance, Calhoun defended the company’s safety culture.

    “Our culture is far from perfect, but we are taking action and making progress,” Calhoun said in his prepared remarks Tuesday. “We are taking comprehensive action today to strengthen safety and quality.”

    The drumbeat of bad news for Boeing goes on, however.

    In the past week, the FAA said it was investigating how falsely documented titanium parts got into Boeing’s supply chain, and federal officials examined “substantial” damage to a Southwest Airlines 737 Max after an unusual mid-flight control issue.

    Boeing disclosed that it hasn’t received a single order for a new Max — previously its best-selling plane — in two months.

    J. Scott Applewhite

    With protesters in the audience, Boeing CEO Dave Calhoun arrives to testify before the Senate Homeland Security and Governmental Affairs Subcommittee on Investigations to answer to lawmakers about troubles at the aircraft manufacturer since a panel blew out of a Boeing 737 Max during an Alaska Airlines flight in January, at the Capitol in Washington, Tuesday, June 18, 2024.

    Blumenthal first asked Calhoun to appear before the Senate subcommittee after a whistleblower, a Boeing quality engineer, claimed that manufacturing mistakes were raising safety risks on two of the biggest Boeing planes, the 787 Dreamliner and the 777. He said the company needed to explain why the public should be confident about Boeing’s work.

    Boeing pushed back against the whistleblower’s claims, saying that extensive testing and inspections showed none of the problems that the engineer had predicted.

    The Justice Department determined last month that Boeing violated a 2021 settlement that shielded the company from prosecution for fraud for allegedly misleading regulators who approved the 737 Max. A top department official said Boeing failed to make changes to detect and prevent future violations of anti-fraud laws.

    Prosecutors have until July 7 to decide what to do next. Blumenthal said at the start of Tuesday’s hearing that he thinks the Justice Department should prosecute the company.

    Families of people who died in the Boeing Max crash in Ethiopia have pushed the Justice Department repeatedly to prosecute Boeing.

    “We will not rest until we see justice.,” said Zipporah Kuria, whose father died in the crash. She said the U.S. government should “hold Boeing and its corporate executives criminally responsible for the deaths of 346 people.”

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  • Boeing’s Dave Calhoun to step down as CEO at the end of year

    Boeing’s Dave Calhoun to step down as CEO at the end of year

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    In major shakeup of Boeing’s leadership, CEO Dave Calhoun said Monday he intends to leave the beleaguered company by the end of the year. The company’s chairman and head of the commercial airplane unit are also leaving.

    Boeing’s chairman, Larry Kellner, will not stand for re-election as a board director. The board has elected former Qualcomm CEO Steve Mollenkopf to succeed him.

    The company also announced that Stan Deal, CEO of Boeing Commercial Airplanes, is retiring. Stephanie Pope, Boeing’s chief operating officer since January, is taking his place effective immediately.

    Boeing has been buffeted by more than five years of problems with its airplanes, including two fatal crashes of the 737 Max in 2018 and 2019 that killed 346 people, and most recently a door plug that blew out of the side of an Alaska Airlines 737 Max in January, leaving a gaping hole in the side of the plane. The problems have led to multiple groundings for safety issues and more than $31 billion in cumulative losses.

    In a letter to Boeing employees Monday, Calhoun called the Alaska Airlines incident “a watershed moment for Boeing.”

    “The eyes of the world are on us,” he said in announcing his departure plans. “We are going to fix what isn’t working, and we are going to get our company back on the track towards recovery and stability.”

    Calhoun, 66, a longtime board member at Boeing, became chairman of the company in late 2019, when the board stripped his predecessor Dennis Muilenburg of that title. He was tapped as CEO after Muilenburg was ousted in December of that year, starting in the job in January 2020.

    Calhoun’s tenure began about halfway through a 20-month grounding of the 737 Max due to a design flaw that was determined to have caused the two crashes; and just before the Covid pandemic broke out globally, causing a near halt in air travel and massive losses for the airlines Boeing depends upon to buy its planes.

    (The-CNN-Wire & 2023 Cable News Network, Inc., a Time Warner Company. All rights reserved.)

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    CNNWire

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  • Boeing CEO acknowledges 'mistake,' says midair blowout 'can never happen again'

    Boeing CEO acknowledges 'mistake,' says midair blowout 'can never happen again'

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    The terrifying moment when a door plug to a Boeing 737 Max 9 suddenly blew open while the jet was 16,000 feet in the air was a “mistake” that “can never happen again,” airline Chief Executive Dave Calhoun said during a company town hall.

    Calhoun told employees Tuesday, “We are going to approach it with 100% transparency every step of the way” while “acknowledging our mistake.”

    “This stuff matters,” he said. “Everything matters. Every detail matters.”

    But nearly a week after the alarming incident, which reportedly ripped the shirt off a teenage boy and the headrests off some seats, it remains unclear what exactly the error was — and why a hole burst open in the side of Alaska Airlines Flight 1282 as it neared cruising altitude on its scheduled journey from Portland, Ore., to Southern California.

    Meanwhile, the ripple effects of the midair ordeal continue to be felt. Alaska Airlines said Wednesday it would cancel all flights scheduled aboard 737 Max 9s until at least Saturday to allow time for inspections.

    The decision is expected to affect 110 to 150 flights per day, according to the airline.

    “We regret the significant disruption that has been caused for our guests by cancellations due to these aircraft being out of service,” the airline said in a statement. “We hope this action provides guests with a little more certainty, and we are working around the clock to re-accommodate impacted guests on other flights.”

    Boeing released video of a brief portion of Calhoun’s comments to employees days after the Federal Aviation Administration grounded all 737 Max 9 jets and issued an emergency airworthiness directive calling for all Max 9s with mid-cabin door plugs to be inspected before returning to the air.

    It’s unclear how long the planes will be out of use.

    Calhoun on Tuesday complimented Alaska and other airlines, saying that although it was a difficult decision, grounding the planes “prevented, potentially, another accident or another moment.”

    The National Transportation Safety Board, which is investigating the incident, said Tuesday that investigators were still trying to locate four missing bolts that were meant to keep the door plug on Flight 1282 from shifting up and blowing wide open mid-flight.

    The door plug in question filled in an additional emergency exit that Alaska was not using in its modified layout of the 737 Max 9.

    It’s unclear what role, if any, the bolts played in the incident. NTSB officials also said they were transporting the door plug to their laboratory in Washington, D.C., to determine whether the bolts were missing before the flight or if they were broken off because of the incident.

    Earlier this week, Alaska and United airlines also reported they found loose bolts on some of their 737 Max 9 jets during inspections spurred by Friday’s flight, which was supposed to land in Ontario.

    NTSB Chair Jennifer Homendy on Tuesday said the agency was aware of reports from other airlines about the bolts but was focused on trying to find out what happened specifically to Flight 1282.

    “We need to, first and foremost, figure out what happened with this aircraft,” she said. “If we have a bigger systemwide or fleet issue, we will issue an urgent safety recommendation or push for change.”

    Calhoun said Boeing was working with the NTSB in the investigation.

    NTSB investigators had also been looking into a warning light on Flight 1282 that had illuminated three times in the last month, indicating a possible problem with pressurization.

    Alaska Airlines had restricted the plane from flying transcontinental routes, according to the NTSB.

    On Tuesday, however, Homendy said the system appeared to have been working as intended, and was not the cause of the expulsion of the door plug.

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    Salvador Hernandez

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