March 28 (Reuters) - The new head of Boeing's ( BA )
troubled commercial airplane unit said the planemaker faces a
"pivotal moment" as it works to boost quality and address
significant concerns from regulators and airline customers after
a panel flew off a 737 MAX 9 jet in January.
"This is a pivotal moment for us, and we have serious work
ahead to build trust and improve our operations," said Stephanie
Pope, who was named president and CEO of Boeing Commercial
Airplanes on Monday, in an email to employees on Wednesday seen
by Reuters.
Pope was named chief operating officer in December and
retains the title after holding a wide range of prior jobs at
Boeing ( BA ).
On Monday, Boeing ( BA ) CEO Dave Calhoun announced he would leave
by the end of the year, while the company's long-time head of
commercial airplanes, Stan Deal, retired effectively immediately
and the board chair Larry Kellner stepped down and was replaced
as chair by director Steve Mollenkopf.
GE CEO Larry Culp, who has been touted by industry
executive analysts as a possible replacement for Calhoun, said
at an event in New York he was fully focused on GE Aerospace and
would return to its headquarters in Ohio. "There's no better
business. There's no better job," Culp said.
He said Boeing's ( BA ) board would be focused on leadership
qualities in its CEO search. "This is a big company going
through tremendous challenge right now," Culp said, saying the
planemaker must be thinking about long-term product and
corporate strategy. "It won't be enough to get through the
challenges of 2024."
Boeing ( BA ) has come under intense criticism since a door plug
panel tore off a new Alaska Airlines 737 MAX 9 jet at
16,000 feet.
In the aftermath of the incident, the FAA grounded the MAX 9
for several weeks, barred Boeing ( BA ) from increasing the MAX
production rate and ordered it to develop a comprehensive plan
to address "systemic quality-control issues" within 90 days.
Boeing ( BA ) production has fallen below the maximum 38 MAX planes
per month the FAA is allowing. The Justice Department has opened
a criminal investigation into the MAX 9 incident.
"Our path forward is clear. We will put safety and quality
above all else in order to meet and exceed the expectations of
our regulators, customers, flying public and each other," Pope
said.
She said over next couple of weeks, she "will be spending my
time meeting and engaging with our team as we enhance and
implement our safety and quality improvement plan."
FAA Administrator Mike Whitaker said earlier the agency and
Boeing ( BA ) hope by the end of March to define the milestones the
manufacturer must meet.