The outgoing CEO of Boeing Co BA, Dave Calhoun, is scheduled to testify before a U.S. Senate panel on June 18. Calhoun’s testimony comes in the wake of a series of incidents that have raised concerns about the safety and quality of Boeing aircraft, leading to a reduction in production of its 737 MAX model by regulators.
What Happened: Calhoun will appear before the Permanent Subcommittee on Investigations, chaired by Sen. Richard Blumenthal (D-Conn.) Reuters reported on Thursday. The hearing will cover a range of issues, including the FAA’s decision to halt the production of the 737 MAX after a door panel malfunctioned on a flight operated by Alaska Airlines in January.
Blumenthal, who has been critical of Boeing’s safety practices following two fatal crashes in 2018 and 2019, emphasized the need for Boeing to explain its recent safety and quality issues.
Calhoun, who has been at the helm since 2020, is set to leave the company at the end of the year. His departure is part of a broader management overhaul as Boeing faces multiple government investigations and pressure from investors and airlines to appoint a new CEO.
During an April hearing before Blumenthal’s committee, a Boeing engineer testified that the company had taken dangerous manufacturing shortcuts and disregarded safety concerns. Blumenthal described Calhoun’s upcoming testimony as a crucial step in addressing Boeing’s failures and regaining public trust.
Additionally, the Senate Commerce Committee announced that FAA Administrator Mike Whitaker will testify before the panel on June 13 to discuss the agency’s oversight of Boeing and other airplane manufacturers.
Why It Matters: Calhoun’s testimony comes at a critical time for Boeing, which has been grappling with a series of challenges. The company was recently ordered to pay $72 million to electric aircraft startup Zunum Aero for stealing trade secrets, a judgment that Boeing has vowed to contest.
The company is also facing criticism from whistleblowers, with two employees raising concerns about operational failures and the deaths of their colleagues.
Price Action: On Wednesday, the stock closed at $189.85, according to Benzinga Pro. The stock’s 52-week range has been between $159.70 and $267.54.
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Photo courtesy: Shutterstock and Wikimedia
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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