Boeing Co.'s (NYSE:BA) CEO, David Calhoun, is set to appear before U.S. senators on Tuesday, where he will be questioned about the company's safety measures amid ongoing investigations.
What Happened: Calhoun is expected to address the Senate investigations subcommittee, chaired by Sen. Richard Blumenthal (D-Conn.), who has been critical of Boeing, reported ABC News. This will be Calhoun's first appearance before Congress since a 737 Max incident during an Alaska Airlines flight in January.
The CEO will be questioned about Boeing's recent plan to rectify its manufacturing issues. The National Transportation Safety Board and the Federal Aviation Administration are conducting separate investigations into the company's safety culture.
"From the beginning, we took responsibility and cooperated transparently with the NTSB and the FAA. Our culture is far from perfect, but we are taking action and making progress. We are taking comprehensive action today to strengthen safety and quality," Calhoun said in remarks prepared for the hearing.
Blumenthal, who has previously criticized Boeing's safety practices, emphasized the importance of Calhoun's testimony in rebuilding public trust. The Justice Department is also considering whether to prosecute Boeing for violating the terms of a settlement following the fatal crashes.
Boeing says that the company has taken several steps to address safety concerns, including slowing production, appointing a retired Navy admiral to lead a quality review, and delivering an improvement plan to the FAA. Despite these efforts, the company continues to face challenges, such as the recent FAA investigation into falsely documented titanium parts in its supply chain.
Why It Matters: Boeing's safety issues have been under scrutiny for some time. In June, the FAA launched an investigation into the authenticity of titanium parts in some of Boeing's aircraft. This investigation could potentially affect the integrity of critical aerospace materials.
Boeing has been grappling with safety concerns for a while. In March, it was announced that Calhoun would resign by the end of 2024, marking a major leadership transition for the aerospace giant. However, the company's safety issues persisted, with a midair panel blowout on a nearly new 737 MAX plane in June further exacerbating the situation.
Despite these challenges, Calhoun received a $32.8 million compensation in 2023, with Boeing stating that the company had paid its outgoing CEO.
Price Action: Boeing Co's stock closed at $178.39 on Monday with a gain of 0.63% for the day. In after-hours trading, the stock increased slightly by 0.011%. Year to date, the stock has faced a significant decline of 29.14%, according to the data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote