Boeing CEO Faces Tough Questions Before Senate

Republican Senator Josh Hawley accused Calhoun of “robbing” the company with multimillion-dollar salary packages and questioned why he had not resigned. Calhoun, who announced his retirement at the end of the year, remained calm, stating, “I am here to answer questions. I am here in the spirit of transparency and to take responsibility.”

According to Reuters, U.S. senators grilled Boeing’s CEO about the company’s tainted safety record, demanding apologies to families of victims of the two 737 MAX crashes and acknowledgment of responsibility for an emergency incident in January.

During the Senate hearing, Calhoun maintained his composure despite repeated questions about his salary, Boeing’s safety culture, and why he had not resigned immediately instead of retiring at year’s end.

Senator Josh Hawley sharply questioned Calhoun, asking why he had not resigned immediately, accusing him of “robbing” the company while earning millions in salary.

This was Calhoun’s first appearance before lawmakers, drawing attention to Boeing’s deteriorated safety reputation and the CEO’s impending departure. Boeing shares fell about 2% late Tuesday to $175.03.

Calhoun acknowledged that a January 5th incident involving an Alaska Airlines plane was due to a manufacturing defect. Boeing also took responsibility for significant software development issues related to fatal crashes in Indonesia and Ethiopia in 2018 and 2019 that killed 346 people.

“I am here to answer questions. I am here in the spirit of transparency and to take responsibility,” Calhoun told reporters as he entered the hearing room.

Senator Richard Blumenthal, chairing the subcommittee, said during the hearing that there was ample evidence for the U.S. Department of Justice to prosecute Boeing.

In May, prosecutors found that Boeing had failed to “design, implement, and enforce a compliance and ethics program” as part of a deferred prosecution agreement following the fatal crashes. Prosecutors have until July 7 to notify a federal judge in Texas of their plans. Last week, Boeing stated that it had not violated the deferred prosecution agreement with the DOJ, which had protected the company from criminal charges related to the crashes.

Blumenthal revealed that a new whistleblower had come forward following a previous whistleblower hearing in April. He stated that Sam Mohawk, a quality assurance inspector at Boeing’s 737 factory in Renton, Washington, testified to systemic negligence regarding the certification and accountability of non-conforming parts.

In a pre-hearing report by the committee, Mohawk noted that his work with non-conforming parts became significantly more “complex and challenging” after MAX production resumed in 2020 following the two fatal crashes.

Mohawk’s report indicated that he had filed a related complaint with the Occupational Safety and Health Administration (OSHA) in June.

Boeing stated that it was investigating these new allegations, emphasizing, “Our priority is to ensure the safety of our airplanes and passengers, and we continuously encourage our employees to report any concerns.”

The company also mentioned it had increased the size of its quality team and significantly raised the number of inspections per aircraft since 2019.

Blumenthal described the hearing as a “moment of reckoning” for Boeing, saying, “Boeing needs to stop thinking about its next investor meeting and start thinking about the next generation.”

Since a January 5 incident involving a 737 MAX 9 aircraft door cap explosion, scrutiny of the plane maker has intensified from regulators and airlines.

The National Transportation Safety Board reported that four key bolts were missing from the Alaska Airlines aircraft. The DOJ initiated a criminal investigation into the incident. On May 30, Boeing presented a quality improvement plan to the FAA, which had given the company 90 days to develop a comprehensive effort to address “systemic quality control issues.” The FAA also banned the expansion of MAX production.