Boeing tells Senate it’s making progress on safety reforms and is in talks with DOJ over revised plea deal
Boeing CEO Kelly Ortberg told senators on Wednesday that he’s happy with the company’s progress improving manufacturing and safety practices following several accidents, including a near catastrophe last year. Ortberg faced questioning from the Senate Commerce Committee about how the company will ensure that it doesn’t repeat past accidents or manufacturing defects, in his first hearing since he became CEO last August, tasked with turning the manufacturer around. Sen. Ted Cruz, R.-Texas, the committee’s chairman, said he wants Boeing to succeed and invited company managers and factory workers to report to him their opinions on its turnaround plan. “Consider my door open,” he said. Ortberg acknowledged the company still has more to do. “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 said in his testimony. “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 worked for years to put the lasting impact of two fatal crashes of its best-selling Max plane behind it. Ortberg said Boeing is in discussions with the Justice Department for a revised plea agreement stemming from a federal fraud charge in the development of Boeing’s best-selling 737 Maxes. The previous plea deal, reached last July, was later rejected by a federal judge, who last month set a trial date for June 23 if a new deal isn’t reached. Boeing had agreed to plead guilty to conspiring to defraud the U.S. government, pay up to $487.2m and install a corporate monitor at the company 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.” Asked by Sen. Maria Cantwell, the ranking Democrat on the committee, whether he had an issue with having a corporate monitor, Ortberg replied: “I don’t personally have a problem, no.”
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