At a tense Senate hearing, Boeing CEO Dave Calhoun offered an apology to the families of the 346 victims of the 737 MAX crashes and acknowledged the ‘gravity’ of the company’s safety issues. Calhoun faced a barrage of criticism from U.S. senators, including Richard Blumenthal, who challenged the CEO’s leadership and Boeing’s commitment to safety over profits. The hearing comes as Boeing grapples with multiple whistleblower allegations, including claims by Sam Mohawk of nonconforming parts being used in aircraft production and attempts to hide evidence from the Federal Aviation Administration (FAA).Senators grilled Calhoun about Boeing’s handling of whistleblower reports and the company’s production of nonconforming parts, which may have been installed on 737 MAX planes. Calhoun, who is set to step down as CEO by the end of the year, defended Boeing’s safety culture, stating the company is ‘far from perfect, but we are taking action and making progress’. Boeing’s stock dipped nearly 2% following the hearing, reflecting investors’ concerns over the ongoing investigations and potential for criminal charges.The hearing also addressed the recent mid-air emergency involving a 737 MAX and Boeing’s compliance with a 2021 agreement to implement a required compliance and ethics program. The Justice Department, Congress, and the FAA are scrutinizing Boeing’s quality and safety improvement plan, with the possibility of severe consequences, including criminal charges, if Boeing is found to have failed to meet its obligations.
Key points
- Boeing CEO Dave Calhoun apologized for the 737 MAX crashes and faced Senate scrutiny over new whistleblower claims.
- Senators criticized Boeing’s safety culture and questioned the company’s commitment to safety over profits.
- Whistleblower allegations include the use of nonconforming parts in Boeing airplanes and hiding evidence from the FAA.
- Boeing’s stock fell following the hearing, with potential criminal charges looming over the company.
