Boeing CEO Comes Under Fire at USA Senate Hearing

Dave Calhoun acknowledges Alaska Airlines door plug incident was the result of a manufacturing defect

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USA senators attacked the CEO of Boeing for the planemaker’s tarnished safety record, overshadowing his apology to families who lost loved ones in two 737 MAX crashes and acceptance of responsibility after a January mid-air emergency.

Chief Executive Dave Calhoun retained his composure under repeated questioning about how much he is paid, Boeing’s safety culture, and why he is not immediately resigning instead of retiring by year’s end, at a hearing before the Senate Permanent Subcommittee on Investigations.

He faced harsh questioning from Republican Senator Josh Hawley who asked, “why haven’t you resigned?” and accused Calhoun of “strip-mining” the company while earning a handsome multimillion-dollar pay package. The hearing marked the first time Calhoun has faced lawmakers’ questions and put the spotlight on Boeing’s souring safety reputation and the departing CEO following a management shakeup.

Calhoun acknowledged the Alaska Airlines door plug incident on January 5 was the result of a manufacturing defect. Boeing also took responsibility for the development of a key software system linked to the 2018 and 2019 fatal crashes in Indonesia and Ethiopia which killed a combined 346 people.

“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.

Senator Richard Blumenthal who chairs the subcommittee told the hearing there is overwhelming evidence that the USA Justice Department should pursue prosecution against Boeing. Prosecutors found in May that Boeing had failed to “design, implement, and enforce a compliance and ethics programme” as part of complying with a deferred prosecution agreement following the fatal crashes. Prosecutors have until July 7 to inform a federal judge in Texas of their plans.

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