(Bloomberg) – U.S. regulators have issued a scathing assessment of Boeing Co.’s safety culture, putting further pressure on the company as it grapples with the aftermath of a near-catastrophic crash earlier this year.
Most Read Articles on Bloomberg
A panel of experts convened by the Federal Aviation Administration said in a report released Monday that the plane maker had inefficient procedures and a breakdown in communication between senior management and other employees. Stated. The report, mandated by U.S. lawmakers, found that complex procedures, constant changes in training, confusion, and other shortcomings led to an average failure to understand Boeing’s role in safety management. It is said that understanding among employees is hindered.
“I really hope this is a wake-up call for Boeing,” said Rich Plunkett, a member of the expert review panel and director of strategic development for the union representing Boeing engineers. Told.
The report was released the day before Boeing CEO Dave Calhoun met with the FAA administrator, the people said, and the report was released the day before Boeing CEO Dave Calhoun met with the FAA administrator to discuss the issue in January, when a panel covering an unused door flew off during a flight. The area is said to be under increased scrutiny following the accident on the 5th. Alaska Airlines plane. The executive has issued multiple public apologies since then to quell criticism from regulators, lawmakers and customers.
“We will carefully consider the panel’s evaluation and learn from its findings as we continue our comprehensive efforts to improve our safety and quality programs,” Boeing said in a statement.
The 50-page report also overhauls Boeing’s culture and efforts to strengthen safety practices after two 737 Max crashes in 2018 and 2019 killed 346 people. However, it highlights that there is still work to be done. The company created a new chief aerospace safety officer position and adopted a more systematic approach to addressing potential risks, known as a safety management system.
But the findings highlight how Boeing continues to struggle with a more fundamental problem: ensuring that bad news from the factory floor gets to executives on the other side of the country.
The FAA said in a statement that it will immediately begin reviewing the report and “determine appropriate next steps regarding the recommendations.”
mistrust, revenge
The Commission found that management’s oversight of employees assigned to investigative duties “could compromise” safety and could lead to retaliation. Many Boeing employees don’t know how to flag potential safety issues, according to a survey, following the grounding of 737 Max aircraft following two fatal crashes in 2019. They did not trust the “Speak Up” program introduced by the company.
“Employee interviews revealed distrust of the anonymity of the Speak Up program, raising questions about the effectiveness of the reporting program,” the report states. “At the end of the day, employees prefer to report safety issues to their managers.”
In its work, the committee sought information from Boeing demonstrating its commitment to safety. The materials the company received “did not provide objective evidence of a fundamental commitment to safety consistent with Boeing’s narrative.”
Preparation of the safety culture report began in March 2023. The report was mandated by Congress in the Aircraft Certification, Safety, and Accountability Act of 2020, which directed the FAA to convene experts to evaluate the practices of the company’s employees who act on behalf of federal inspectors.
The process came under the microscope after the 737 Max family was grounded in 2019 following a second fatal crash. Some of the key designs involved in the crashes were approved by Boeing employees on behalf of U.S. regulators.
Similar issues with Boeing’s safety culture have cropped up repeatedly in recent years. After the 737 Max was grounded following two crashes in 2019, questions arose as the larger 787 Dreamliner was built.
The panel identified 27 findings and 53 related recommendations based on more than 250 interviews and more than 4,000 pages of Boeing documents. It called on Boeing to review the recommendations within six months, develop a plan to address them, and share a specific implementation date with the FAA.
“What do you hope comes out of this? Boeing should stop attacking its employees,” Plunkett, of the Society of Aerospace Professional Engineers, said in an interview. “That’s the source of your excellence. Embrace them, including those represented by trade unions. Stop fighting them for profit.”
alaska airline accident
January’s 737 Max 9 disaster ended a series of other quality defects suffered by Boeing and major supplier Spirit AeroSystems Holdings over the past year. In response, the FAA assigned additional inspectors to Boeing factories to oversee the production of new aircraft and began auditing both companies.
The four bolts that hold the so-called door plug in place were apparently not installed at the factory, according to a preliminary National Transportation Safety Board report.
FAA Administrator Mike Whitaker said the agency could expand its review if problems are found elsewhere. He also told U.S. lawmakers that government employees may maintain a larger presence at Boeing factories in the long term. He said the expert committee’s findings will help the authorities take further steps to strengthen their oversight of aircraft manufacturers.
Mr. Calhoun is scheduled to meet with Mr. Whitaker in Washington, D.C., on Tuesday, said a person familiar with the matter who asked not to be identified. Following Whitaker’s visit to Seattle earlier this month, the agency announced that the FAA chief will discuss Boeing’s quality management system, compliance with manufacturing requirements, and expansion of its safety management system. These face-to-face interactions highlight the increased scrutiny of Boeing and its key regulators.
The FAA is conducting a separate investigation into whether Boeing failed to ensure that planes leaving the factory were built according to design and safety standards. The agency also blocked Boeing from increasing production rates for the cash-strapped jetliner beyond current levels until it was satisfied that Boeing was controlling quality.
Mr. Calhoun has slowed Boeing’s production, reshuffled its management team and suspended financial guidance for this year in an effort to stabilize Boeing’s factories.
Boeing stock was little changed as of 3:13 p.m. in New York trading. The U.S. aircraft maker’s stock price has fallen 23% so far in 2024, making it the worst performer among the Dow Jones Industrial Average’s constituents.
(Updated with comments from review panelists and FAA; details of planned meeting between Boeing and FAA begin in third paragraph)
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP