*
Boeing ( BA ) CEO says planemaker has made drastic changes after
mid-air emergency
*
Boeing ( BA ) aims to reduce defects in parts received for
production
*
Lawmakers say Boeing ( BA ) must fix culture, focus on safety
(Adds more details from hearing comments in paragraphs 1-3, 6)
By David Shepardson
WASHINGTON, April 2 (Reuters) - Boeing ( BA ) CEO Kelly
Ortberg said on Wednesday that the planemaker is focused on
improving safety and not pressuring workers to speed up
production after a 2024 mid-air 737 MAX 9 emergency.
"I'm not pressuring the team to go fast. I'm pressuring the
team to do it right," Ortberg said at a U.S. Senate Commerce
Committee hearing, adding that he was hopeful the company could
resume producing 38 Boeing 737 MAX planes per month later this
year and then surpass that, but was not committing to a date.
"I suspect it will be sometime this year," Ortberg said. He
said airlines are frustrated by delivery delays but support the
approach. "They know we've got to do this right."
Lawmakers have been scrutinizing the company since a January
2024 mid-air emergency involving a new MAX 9 that was missing
four key bolts raised fresh questions about Boeing's ( BA ) quality and
safety culture, as well as regulatory oversight.
"We've made drastic changes to our internal process to
ensure that this will never happen again," Ortberg said.
After the incident, the Federal Aviation Administration
imposed a production cap of 38 planes per month on the 737 MAX.
Boeing ( BA ) is still awaiting FAA approval of two new versions of the
MAX.
"Insufficient oversight of third-party suppliers and a lack
of sufficient internal auditing procedures created an
unsustainable, lack of safety culture at Boeing ( BA )," said Senate
Commerce Committee chair Ted Cruz, a Republican from Texas.
Ortberg told senators Boeing ( BA ) made "serious missteps" in
recent years but has since made "sweeping changes."
Ortberg may also face questions on other issues, including
the company's delayed Air Force One delivery schedule, the
impact of tariffs and the status of the planemaker's criminal
case involving representations it made about the 737 MAX before
fatal crashes in 2018 and 2019 killed 346 people.
Ortberg took over as CEO in August of last year. His
predecessor Dave Calhoun announced his resignation shortly after
the January mid-air incident, in which an Alaska Airlines door
panel blew out, and testified before a Senate panel in July.
Last month, Transportation Secretary Sean Duffy said Boeing ( BA )
had lost the trust of the American people and needed strict
oversight after the Alaska Airlines incident and two fatal
crashes.
The prior head of the FAA said it could take years to change
Boeing's ( BA ) culture.
In July of last year, Boeing ( BA ) agreed to plead guilty to a
criminal fraud conspiracy charge and pay at least $243.6 million
after breaching a 2021 deferred prosecution agreement.
A U.S. judge last week set a June 23 trial date in the case
after a media report that Boeing ( BA ) was seeking to withdraw from
the terms of its plea agreement.