Boeing CEO Dave Calhoun publicly acknowledged errors made by the US planemaker as over 170 jets remain grounded for the fourth day. Calhoun assured staff that the company would take comprehensive measures to prevent a repeatition of the mid-air Alaska Airlines panel blowout incident.
The somber town hall meeting at Boeing’s Renton, Washington 737 factory witnessed the company’s top official, Stan Deal, addressing the gravity of the recent incident. The acknowledgment of errors came after Boeing’s CEO, Dave Calhoun, expressed deep concern over the mishap involving a 737 MAX 9. This marked Boeing’s first public admission of faults since a door plug snapped off the fuselage, causing a significant breach.
Boeing CEO’s Commitment to Transparency
Calhoun, visibly shaken by the accident, pledged a transparent approach, acknowledging the mistake and ensuring complete openness in addressing the issue. This acknowledgment comes nearly five years after Boeing faced a MAX safety crisis following fatal crashes in Indonesia and Ethiopia.
Quality Control Investigations
Boeing has treated the findings as a “quality control issue,” prompting checks into its processes and controls. Written orders have been dispatched to Boeing’s plants and supplier Spirit Aerosystems to rectify and conduct comprehensive checks on systems.
Market Response and Flight Cancellations
Boeing’s shares dipped by 1.4% as United and Alaska Airlines canceled significant flights due to the grounded planes. Calhoun assured Boeing employees of the company’s commitment to ensuring the safety of every aircraft taking to the skies.
FAA Intervention and Industry Criticisms
While praising the swift response of Alaska Airlines, some industry leaders criticized Boeing for not grounding planes sooner. The FAA’s emergency order intervened, prompting Boeing to support the action. This contrasts with the legalistic tone after the 2018 Lion Air crash.
Inspection Protocol and FAA Review
Boeing is revising instructions for inspections and maintenance, awaiting FAA approval before official checks commence. The FAA emphasized a thorough review, and the timeline for the MAX’s return to service hinges on public safety.
Industry Implications and Certification Challenges
Boeing’s second-place position in 2023 deliveries, behind Airbus, signals market challenges. The recent problems may lead the FAA to adopt a stricter stance on certifying designs for models like the MAX 7. Boeing’s exemption request for pre-certification changes appears less likely.
Southwest Airlines’ Potential Delay
The awaited plane for Southwest Airlines could face an additional six-month delay, according to senior industry sources. FAA head Mike Whitaker is set to testify before Congress, addressing questions about the approval of 737 MAX planes, with the hearing predating the Alaska Airlines incident.
(With Reuters Inputs)