Boeing Co. has come under intense scrutiny following the cabin panel explosion and faces a “serious challenge” in regaining the trust of regulators and airlines, the company's CEO said.
Dave Calhoun admitted the business has “a lot to prove” after a brand new 737 Max 9 jet was forced to make an emergency landing earlier this month.
The dramatic accident during an Alaska Airlines flight, which grounded some 171 Max 9 jets for several weeks, is Boeing's biggest safety crisis since the crashes of two Max 8 jets in 2018 and 2019. This caused a crisis in which 346 planes crashed. people were killed.
In announcing its quarterly results on Wednesday, Boeing declined to provide Wall Street with guidance for the year ahead, saying it was “committed” to “strengthening quality” at the company.
In a letter to employees released with the results, Calhoun said he had had “tough and direct conversations” with airlines, regulators and politicians in recent weeks. “They are disappointed. We have much to prove to gain the trust of our stakeholders,” he wrote. “There’s no message or slogan to do that.”
Officials expressed more than disappointment. The US Federal Aviation Administration (FAA) has increased scrutiny of Boeing, banning the company from increasing production on its Max line last week.
Mike Whitaker, the agency's administrator, warned that “this will not allow Boeing to return to business as usual,” adding that no production will be produced “until the quality control issues identified during this process are resolved.” He also emphasized that he would not approve any expansion.
Calhoun told staff that such scrutiny “will make us better.” But it has also angered Boeing's customers, with some airlines, including United Airlines, considering plans to remove Boeing's next jet, the Max 10, from their fleets.
Boeing's revenue rose 10% to $22.02 billion in the fourth quarter, which ended days before the Alaska accident on Jan. 5. Net loss for the period narrowed from $663 million to $30 million.
“We have taken significant steps over the past several years to strengthen our safety and quality processes,” Calhoun wrote. “But this incident has made it clear that we still have much work to do.”
Still, the CEO maintained that Boeing management still has “every confidence” in the company's recovery. “We have serious challenges ahead of us, and I know this team is up to the task.”
