KUALA LUMPUR – Boeing accepts responsibility for the incident in which a door plug blew out of a 737 Max 9 mid-flight last month, says its chief executive officer, Dave Calhoun.
He added that the global aerospace company must do a better job than it did in this instance, according to a report by CNBC.
“We caused the problem, and we understand that. Whatever conclusions are reached, Boeing is accountable for what happened.
“Whatever the specific cause of the accident might turn out to be, an event like this simply must not happen on an aeroplane that leaves one of our factories.
We simply must be better,” he told investors during a call after reporting the latest quarterly loss at the company.
Differing from the previous years, Boeing did not release its customary financial guidance to investors and did not specify a timeline for the delivery of two new versions of the 737 Max, as promised to airlines, which have yet to be certified by the Federal Aviation Administration.
“While we often use this time of year to share or update our financial and operational objectives, now is not the time for that.
“We will simply focus on every next aeroplane while doing everything possible to support our customers, follow the lead of our regulator, and ensure the highest standard of safety and quality in all that we do. Ultimately, that is what will drive our performance,” Calhoun said.
The door plug that blew out of the Alaska Airlines Max 9 plane was found in the backyard of a home in Portland, Oregon.
On January 5, the plane was just 20 minutes into its flight when the fuselage panel blew out, decompressing the cabin and leaving passengers exposed. The flight turned back and landed safely, with no one injured.
The door plug drew Malaysia’s interest as handwriting in marker pen on the panel stated that it was ‘Made in Malaysia’ along with additional manufacturing information.
The United States watchdog, the National Transportation Safety Board, subsequently confirmed the panel was made in Malaysia. It was then transported to Boeing’s supplier in Wichita, Kansas, in the US and then onward to the MAX 737 factory in Renton in Washington State.
Calhoun also commended Alaska for grounding Max 9 planes after the accident. The Federal Aviation Administration later grounded the fleet.
“Alaska Airlines did exactly what companies like Boeing would hope that they do at a moment like that, and that is why the airline industry is as safe as it is,” Calhoun said.
Federal investigators are examining whether the door plug was improperly installed before the Max 9 plane was handed off to Alaska late last year.
The National Transportation Safety Board is expected to release a preliminary report on the accident in the coming days.
It was reported that the Alaska flight 1282 accident was the most serious in a series of apparent production flaws that have slowed down deliveries of new planes and angered some of the company’s biggest airline customers in the process, while its main rival Airbus continues to surpass Boeing in delivering new aircraft.
Boeing has also reaffirmed its 2025 and 2026 financial targets that it laid out in a 2022 investor day: reaching about US$10 billion of free cash flow and US$100 billion in revenue by as early as next year.
Boeing delivered 528 aeroplanes to customers last year, up from 480 in 2022. That includes Max, 787 Dreamliners, and others. Boeing in 2022 said it was targeting annual deliveries of about 800 planes next year or in 2026.
The FAA last week cleared the Max 9 to fly again but said it would halt Boeing’s planned ramp-up in production, which the manufacturer had aimed to get up to about 50 Max planes a month in 2025 or 2026. Boeing confirmed on Wednesday that it is building 38 Max aircraft a month.
The Boeing 737 Max is the company’s best selling plane. A delay to production increases could hamper Boeing’s financial targets and affect suppliers that have been preparing for higher output, as well as customers counting on new planes to cater to post-Covid-19 travel demand.
Calhoun had also visited company and supplier production lines as well as lawmakers on Capitol Hill in the weeks since the incident, vowing transparency and fixing any shortfalls in its manufacturing.
The company had the first of several production stand-downs last week to discuss with workers manufacturing problems and other potential improvements to Boeing’s processes.
“Our people on the factory floor know what we must do to improve better than anyone.
“We should all seek their feedback, understand how to help, and always encourage any team member who raises issues that need to be addressed.
“We will go slow, we will not rush the system, and we will take our time to do it right,” Calhoun said.
On Monday, after pressure from lawmakers, Boeing said it will not seek a safety exemption for the Max 7 related to a de-icing system but instead will work on an engineering solution.
Boeing posted a net loss of US$30 million, or 4 cents a share, in the fourth quarter, narrowing from a US$663 million loss, or US$1.06 a share, a year earlier. Adjusting for one-time items, Boeing reported a net loss of 47 cents per share.
Its free cash flow of US$2.95 billion in the quarter topped analysts’ expectations. Revenue grew 10% year-over-year to $22.02 billion. – February 1, 2024
