Proactive Investors - Outgoing Boeing Co (NYSE:BA, ETR:BCO) CEO Dave Calhoun faced intense bipartisan criticism from US senators over the company's safety, transparency, and quality standards.
During a Senate hearing on Tuesday, Calhoun acknowledged retaliatory actions against employees who raised safety concerns and apologized to the families of Boeing 737 Max crash victims present.
Boeing has been under scrutiny for several safety issues, including a recent incident involving a door plug that blew off an Alaska Airlines flight.
Calhoun, who will step down by the end of the year, defended Boeing's safety record and efforts to improve, though he admitted the company's safety culture is imperfect.
Senators, including Democratic Senator Richard Blumenthal and Republican Senator Josh Hawley, were harsh in their questioning.
Blumenthal referred to Calhoun's appearance as a "reckoning" and suggested that prosecution might be necessary due to unfulfilled promises made after the 737 Max crashes.
Hawley accused Calhoun of prioritizing profits over safety, asking Calhoun, “Why haven’t you resigned?”
Calhoun replied that he was “proud of having taken the job.
“I’m proud of this safety record, and I’m proud of our Boeing people,” the CEO told the senator.
The hearing followed a Senate panel report highlighting new whistleblower allegations of defective parts in 737 Max jets.
Calhoun confirmed retaliation against whistleblowers but did not provide specifics.
“I know it happens,” he told the committee.
Two whistleblowers have died recently, one by suicide after testifying to the Senate.
The US Justice Department is considering prosecuting Boeing for violating a 2021 settlement regarding the 737 Max crashes. Despite Boeing's efforts to improve safety, including slowing production and encouraging employee reports, recent issues like falsely-documented titanium parts and damage to a Southwest Airlines (NYSE:LUV) 737 Max continue to plague the company.
Boeing has not received any new orders for the 737 Max in two months.