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Boeing focused on 'trust building' in Latin America after global CEO shake-up
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Boeing focused on 'trust building' in Latin America after global CEO shake-up
Apr 11, 2024 12:02 PM

SANTIAGO, April 11 (Reuters) - Boeing's ( BA ) Latin America

President Landon Loomis says that the embattled airplane

manufacturer is focusing on rebuilding trust after a series of

safety incidents have shaken trust in the company and led CEO

Dave Calhoun to announce he would step down by year-end.

"We are in the moment of a deep fundamental trust building

exercise that has to flow through our entire factory, our

engagements with the press, with government stakeholders, with

our own employees," Loomis told Reuters in an interview at an

aviation conference in Santiago.

"That's how we're handling this process of leadership

transition."

Loomis said that the region is expected to grow at a pace of

5.5% of passenger traffic annually and will need an additional

2,000 aircraft in the next 20 years to meet demand.

He expects the company to be at the forefront of that

demand, but Boeing ( BA ) has faced production issues, including

deliveries dropping by half in March due to increased quality

checks.

Loomis said that global delivery schedules are hard to meet

but the company is focusing on reaching production stability

with a focus on safety.

"That's our starting point, safety through quality," Loomis

said, adding that the airline will be able to meet client

demands.

Despite Brazil's GOL airlines filing for bankruptcy in

January, Loomis says the airline is a "critical" partner in the

region and one of the largest 737 customers in the world.

The executive said that the manufacturer's relationship with

LATAM airlines is "growing," and that Boeing ( BA ) worked closely with

the airline and Australian government after a flight suffered a

sudden mid-air dive and injured 50 people.

The March incident followed a Jan. 5 mid-air panel blowout

on a 737-Max plane, and earlier this week the company was hit

with whistleblower allegations and an investigation due to the

loss of an engine cover on a Southwest flight.

In February, an expert panel found a "disconnect" between

Boeing's ( BA ) management and employees on safety concerns and some

investors said a wider management shakeup is needed to address

the company's safety problems.

"I think we're right now in an important moment and the

company's managing it, so I don't have a thought on that,"

Loomis said when asked about the need for a wider management

shakeup at the company.

When it comes to the short-term, Loomis said he wanted a

year of "promises made, promises kept."

"It doesn't mean avoiding all the problems. It means

handling the problem, addressing a problem, being honest about a

problem," Loomis said. "That's the nuts and bolts of

relationship management, building and trust building."

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