WASHINGTON — Boeing CEO Kelly Ortberg expressed satisfaction with the company’s advancements in manufacturing and safety protocols during a Senate Commerce Committee hearing on Wednesday. This meeting comes on the heels of recent incidents, including a significant near-disaster last year.
In his first appearance before the committee since assuming the CEO position in August, Ortberg was questioned about measures Boeing is implementing to prevent the recurrence of previous accidents and manufacturing flaws as he works on revitalizing the company.
Senator Ted Cruz, a Republican from Texas and chairman of the committee, voiced his support for Boeing’s success and encouraged employees at all levels to share their insights regarding the company’s turnaround strategy. “Consider my door open,” he stated.
While acknowledging the need for continued progress, Ortberg noted, “Boeing 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. While there is still work ahead of us, these profound changes are underpinned by the deep commitment from all of us to the safety of our products and services.”
Boeing executives have been striving to overcome the long-lasting effects of two tragic crashes involving its 737 Max aircraft.
Ortberg revealed that discussions are underway with the Justice Department regarding a new plea agreement linked to a federal fraud charge related to the development of the 737 Max. The prior agreement, established in July, was rejected by a federal judge last month, who set a trial date for June 23 unless a new resolution is reached.
Under the previous deal, Boeing would have pleaded guilty to conspiracy to defraud the U.S. government, pay a maximum of $487.2 million, and put a corporate monitor in place for three years.
“We’re in the process right now of going back with the DOJ and coming up with an alternate agreement,” Ortberg said during the hearing. “I want this resolved as fast as anybody. We’re still in discussions and hopefully we’ll have a new agreement here soon.”
When questioned by Senator Maria Cantwell, the committee’s ranking Democrat, about his stance on having a corporate monitor, Ortberg responded, “I don’t personally have a problem, no.”
Recently, Ortberg and other Boeing executives outlined improvements made on production lines, focusing on minimizing defects and risks associated with improperly sequenced tasks. They also celebrated securing a $20 billion contract to manufacture the next generation of U.S. fighter jets.
Despite these advancements, lawmakers and regulatory bodies continue to rigorously scrutinize Boeing, recognized as a prominent U.S. exporter.
Senator Cruz underscored the importance of restoring Boeing’s reputation. “Boeing has been a great American manufacturer and all of us should want to see it thrive. Given Boeing’s past missteps and problems, the flying public deserves to hear what changes are being made,” he stated in a February announcement leading up to the hearing.
The Federal Aviation Administration (FAA) has maintained a production cap of 38 737 Max planes per month following an incident last January, a limit the agency intends to uphold even as Boeing currently produces below that threshold.
During the hearing, Ortberg indicated that Boeing aims to gradually increase production rates, potentially reaching 38 planes per month or more later this year, but emphasized the company would avoid pushing limits unless production stability is ensured.
Chris Rocheleau, the acting FAA administrator, highlighted the agency’s commitment to ongoing oversight of Boeing’s manufacturing and maintenance practices as well as software updates during a Senate hearing last week.
Correction: Chris Rocheleau is acting FAA administrator. An earlier version misstated his title.
