WASHINGTON, June 18 (Reuters) - Boeing ( BA ) CEO Dave
Calhoun took questions from U.S. lawmakers on Tuesday afternoon,
and acknowledged the planemaker's shortcomings after a January
mid-air emergency involving an Alaska Airlines 737 MAX 9
raised widespread alarm.
"I am here to answer the questions. I am here in the spirit
of transparency and I am here to take responsibility," Calhoun
told reporters earlier as he walked into the hearing room.
The senators are expected to question Calhoun over the
planemaker's safety culture as well as claims from a new
whistleblower employee at a hearing that kicked off at 2 p.m.
EDT (1800 GMT) before the Senate Permanent Subcommittee on
Investigations.
It is the first time Calhoun has faced lawmakers' questions
and puts the spotlight on Boeing's ( BA ) souring safety reputation and
the departing CEO who is expected to leave by year's end
following a management shakeup.
"This is a culture that continues to prioritize profits,
push limits, and disregard its workers," the panel's chair,
Senator Richard Blumenthal, said of Boeing ( BA ). "A culture
that enables retaliation against those who do not submit to the
bottom line. A culture that desperately needs to be repaired."
Blumenthal said a new whistleblower has come forward after a
hearing with a previous whistleblower in April. Blumenthal said
on Tuesday that Sam Mohawk, a current Boeing ( BA ) quality assurance
investigator at its 737 factory in Renton, Washington, recently
told the panel he had witnessed systemic disregard for
documentation and accountability of nonconforming parts.
In a report released by the committee ahead of the hearing,
Mohawk said his work handling nonconforming parts became
significantly more "complex and demanding" following the
resumption of MAX production in 2020 following two fatal crashes
involving the model.
He alleged that the number of nonconformance reports soared
by 300% compared with before the grounding and that the 737
program lost parts that were intentionally hidden from the
Federal Aviation Administration during one inspection. The
report said Mohawk filed a related claim in June with the
Occupational Safety and Health Administration.
Boeing ( BA ) said in a statement that the planemaker is reviewing
the claims it heard about on Monday. "We continuously encourage
employees to report all concerns as our priority is to ensure
the safety of our airplanes and the flying public," it said.
Boeing ( BA ) also said it has increased the size of its quality
team and "increased the number of inspections per airplane
significantly since 2019."
Calhoun will acknowledge shortcomings but seek to emphasize
the company's efforts to improve.
"Much has been said about Boeing's ( BA ) culture. We've heard
those concerns loud and clear. Our culture is far from perfect,
but we are taking action and making progress," Calhoun will say
in his written statement, which was seen by Reuters.
Blumenthal called the hearing a "moment of reckoning" for
Boeing ( BA ).
"Boeing ( BA ) needs to stop thinking about the next earnings call
and start thinking about the next generation," Blumenthal will
say on Tuesday.
Since the Jan. 5 mid-air blowout of a door plug on a 737 MAX
9 jet, scrutiny of the planemaker by regulators and airlines has
intensified.
The National Transportation Safety Board said four key bolts
were missing from the Alaska Airlines plane. The Justice
Department has opened a criminal investigation into the
incident.
Last week, Michael Whitaker, head of the FAA, said the agency
had been "too hands off" in its oversight of Boeing ( BA ) before the
Jan. 5 accident. Another senator has also launched a probe into
Boeing ( BA ).
On May 30, Boeing ( BA ) delivered a quality improvement plan to the
FAA after Whitaker gave the company 90 days to develop a
comprehensive effort to address "systemic quality-control
issues." He has barred the company from expanding production of
the MAX.
Last week, Boeing ( BA ) told the U.S. Justice Department it did not
violate a deferred prosecution agreement after two fatal crashes
of 737 MAX airplanes, a source familiar with the matter told
Reuters. The DPA had shielded the company from a criminal charge
arising from crashes in 2018 and 2019 that killed 346 people.