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Boeing CEO's first statement after the accident: Admitting one's own mistakes will be fully transparent in handling

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On Tuesday (January 9th) local time, David Calhoun, CEO of Boeing, delivered his first public speech after the Alaska Airlines 737 MAX 9 aircraft accident. This accident is deepening people's doubts about the quality of Boeing aircraft.
In his latest speech to employees, Calhoun acknowledged that the accident was related to Boeing's mistake. He said, "The first thing we need to do is admit our mistakes. We will handle this matter in a 100% and completely transparent manner."
Calhoun emphasized at this meeting that safety is Boeing's top priority. He and other senior leaders of Boeing delivered a speech to employees at the company's Renton factory in Washington, D.C., which is the assembly site for the 737 aircraft. They also broadcasted the speech to workers in other regions through online meetings.
Calhoun pointed out that Boeing engineers are carefully analyzing various information and searching for clues to errors. "We will cooperate with the National Transportation Safety Board (NTSB) in the United States to identify the cause of the accident."
Calhoun did not specify what mistakes they had made, while other speaking executives reminded people not to make wild guesses. Calhoun had previously informed employees that the meeting would focus on discussing the company's response to last week's cabin door detachment accident on a Boeing 737 MAX 9 aircraft operated by Alaska Airlines, and strengthening Boeing's focus and commitment to safety, quality, integrity, and transparency.
Previously, the hatch of a Boeing 737 MAX 9 aircraft operated by Alaska Airlines fell off at an altitude of 16000 feet shortly after takeoff, causing the aircraft to crack a large gap during flight. Regulatory authorities have grounded approximately 170 Boeing 737 MAX 9 aircraft since last Saturday.
United Airlines and Alaska Airlines have stated that they are inspecting grounded aircraft and have found loose bolt components on some other MAX 9 aircraft.
In addition to Calhoun, executives such as Stan Deal, the head of Boeing's commercial aircraft division, and Mike Delaney, the Chief Aviation Safety Officer, also gave speeches to on-site workers at the Lenton factory on Tuesday.
It is reported that at the meeting, Calhoun also praised the crew of Alaska Airlines for their response to the sudden accident and stated that Boeing will ensure that "every aircraft flying into the sky next time is safe.". He recalled seeing photos of the damaged fuselage of the plane and said, "I have children, I have grandchildren, and you all have... This matter is very important, every detail is very important."
Boeing has once again come to the forefront of the storm
Before becoming the helmsman of Boeing, Calhoun served as a director of Boeing and a senior executive at General Electric (GE). When he took over as CEO of Boeing in early 2020, the company happened to be in a crisis - the "culprit" at the time was the MAX 8, which was slightly smaller than the MAX 9 aircraft.
In October 2018 and March 2019, there were air accidents on the flights of Lion Air Indonesia and Ethiopian Airlines, resulting in a total of 346 deaths. The planes involved in the accidents were both Boeing 737 MAX 8 aircraft. The Boeing 737 MAX aircraft was subsequently grounded in multiple countries and regions around the world for nearly two years. At that time, these two accidents were believed to be caused by a malfunction in the flight control system leading to a fatal dive of the aircraft, unrelated to the cabin door.
Since the grounding of related aircraft models in March 2019, Boeing's stock price has fallen by more than 40%, while its competitor Airbus's stock price has risen by 25%.
At present, NTSB officials are still investigating the cause of the accident and have stated that it is currently uncertain whether the manufacturing defect caused the door of Alaska Airlines to burst. They stated on Monday that all four bolts used to prevent the hatch from detaching from the stopper were missing, and they will investigate whether these bolts have been installed.
Boeing has been working hard to improve safety, engineering, and production processes since the MAX 8 crash a few years ago. However, in recent years, Boeing's commercial and military aircraft have continued to face quality issues. Last month, Boeing requested airlines to check for loose bolts on the control Max rudder system, and earlier in 2023, drilling errors and improper fittings were also found on some jet aircraft. The company even encountered setbacks in its flagship project to build the next generation US presidential aircraft, Air Force One.
Airline executives, including Ryanair and Emirates, Boeing's two largest clients, have publicly stated that Boeing needs to improve quality standards. Emirates CEO Clark said in an interview in Dubai this week, "Their quality control issues have been around for a long time, and now they are just another manifestation. I think they have started taking action now, but that hasn't helped much."
Jennifer Homendi, Chairman of the National Transportation Safety Commission in the United States, said on Monday that the agency will consider expanding the scope of the investigation. This move may increase scrutiny of Boeing and its aircraft manufacturing processes.
Bank of America analyst Ron Epstein told clients over the weekend, "We believe that recent events have indeed weakened the confidence built around the 737 Max aircraft. In our view, Boeing needs to carefully navigate this potential reputation minefield."
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