WASHINGTON, April 1 (Reuters) -
Boeing ( BA ) CEO Kelly Ortberg will tell lawmakers on
Wednesday the U.S. planemaker made "serious missteps" in recent
years but has since made "sweeping changes" after a January 2024
mid-air emergency involving a new 737 MAX.
"Boeing ( BA ) has made serious missteps in recent years - and it
is unacceptable. In response, we have made sweeping changes to
the people, processes, and overall structure of our company,"
Ortberg will tell the Senate Commerce Committee, according to
written testimony seen by Reuters. "No one is more committed to
turning our company around than our team."
Ortberg took over in August after the planemaker's prior CEO
Dave Calhoun announced his resignation in the aftermath of last
year's mid-air panel blowout on a new Alaska Airlines
737 MAX 9 airplane that was missing four key bolts.
After the incident, the U.S. Federal Aviation
Administration imposed a production cap of 38 planes per month
on the 737 MAX.
Last month, Transportation Secretary Sean Duffy said Boeing ( BA )
had lost the trust of the American people and needed strict
oversight after the Alaska incident and two fatal crashes in
2018 and 2019 killed 346 people.
"Culture is perhaps the most predominant change we are
making as a company," Ortberg's testimony said, adding company
leaders are "spending more time listening and learning from our
employees, working to restore trust, and holding leadership
accountable."
The prior head of the
FAA said it could take years to change
Boeing's ( BA ) culture.
Duffy said the FAA is not ready to lift the monthly 737
MAX production cap.
In July, 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. The Justice
Department said Boeing ( BA ) allowed potentially risky work at its
factories and did not ensure key airplane record-keeping was
accurate.
A U.S.
judge last week set a June 23 trial date i
n Boeing ( BA ) case after a report that Boeing ( BA ) was seeking to
withdraw from the terms of its plea agreement.
Ortberg also said Boeing ( BA ) expects to finalize the
acquisition of Spirit AeroSystems ( SPR ) later "which is key to
delivering for our commercial and defense customers and will
help
improve overall performance and quality."