Robert Besser
05 Apr 2025, 21:22 GMT+10
WASHINGTON, D.C.: Boeing's top executive faced lawmakers on April 2 as the company worked to repair its reputation following a string of safety incidents and growing scrutiny from regulators and the public.
CEO Kelly Ortberg appeared before the Senate Commerce Committee, where he acknowledged the company's past failures while outlining steps being taken to overhaul its operations and restore confidence.
"Boeing has made serious missteps in recent years – and it is unacceptable. In response, we have made sweeping changes to the people, processes, and overall structure of our company," Ortberg said, according to written testimony reviewed by Reuters. "No one is more committed to turning our company around than our team."
Ortberg, who took the reins in August after the departure of former CEO Dave Calhoun, steps into the role amid continued fallout from a January 2024 incident in which a door panel blew off an Alaska Airlines 737 MAX 9 mid-flight. The aircraft was later found to be missing four key bolts.
In response to the mishap, the Federal Aviation Administration imposed a cap limiting production of the 737 MAX to 38 planes per month.
"I'm not pressuring the team to go fast. I'm pressuring the team to do it right," Ortberg said regarding the resumption of assembling Boeing 737 MAX planes.
Transportation Secretary Sean Duffy has since criticized Boeing, saying the company had "lost the trust of the American people" and would require "strict oversight." The FAA has confirmed it is not yet ready to lift the production cap.
Ortberg emphasized that cultural transformation is a significant focus. "Culture is perhaps the most predominant change we are making as a company," his testimony read. "Company leaders are spending more time listening and learning from our employees, working to restore trust, and holding leadership accountable."
Boeing's troubles extend beyond safety. In July, it agreed to plead guilty to a criminal fraud conspiracy charge after violating a 2021 deferred prosecution deal. The Justice Department cited failures in record-keeping and oversight at Boeing's factories.
A judge last week scheduled a trial for June 23 after reports surfaced that Boeing was seeking to walk back its plea agreement.
Ortberg also told lawmakers that Boeing expects to finalize its acquisition of Spirit AeroSystems, saying the deal is "key to delivering for our commercial and defense customers and will help improve overall performance and quality."
Regarding the repeated mishaps involving Boeing aircraft, Ortberg said, "We've made drastic changes to our internal process to ensure that this will never happen again."
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