Boeing made 'serious missteps' but is changing culture, CEO will testify

By David Shepardson

WASHINGTON (Reuters) - Boeing CEO Kelly Ortberg will tell lawmakers on Wednesday the U.S. planemaker made "serious missteps" in recent years but has since made "sweeping changes" after a January 2024 mid-air emergency involving a new 737 MAX.

"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," Ortberg will tell the Senate Commerce Committee, according to written testimony seen by Reuters. "No one is more committed to turning our company around than our team."

Ortberg took over in August after the planemaker's prior CEO Dave Calhoun announced his resignation in the aftermath of last year's mid-air panel blowout on a new Alaska Airlines 737 MAX 9 airplane that was missing four key bolts.

After the incident, the U.S. Federal Aviation Administration imposed a production cap of 38 planes per month on the 737 MAX.

Last month, Transportation Secretary Sean Duffy said Boeing had lost the trust of the American people and needed strict oversight after the Alaska incident and two fatal crashes in 2018 and 2019 killed 346 people.

"Culture is perhaps the most predominant change we are making as a company," Ortberg's testimony said, adding company leaders are "spending more time listening and learning from our employees, working to restore trust, and holding leadership accountable."

The prior head of the FAA said it could take years to change Boeing's culture.

Duffy said the FAA is not ready to lift the monthly 737 MAX production cap.

In July, Boeing agreed to plead guilty to a criminal fraud conspiracy charge and pay at least $243.6 million after breaching a 2021 deferred prosecution agreement. The Justice Department said Boeing allowed potentially risky work at its factories and did not ensure key airplane record-keeping was accurate.

A U.S. judge last week set a June 23 trial date in Boeing case after a report that Boeing was seeking to withdraw from the terms of its plea agreement.

Ortberg also said Boeing expects to finalize the acquisition of Spirit AeroSystems later "which is key to delivering for our commercial and defense customers and will help

improve overall performance and quality."

(Reporting by David Shepardson; Editing by David Gregorio)