Boeing Gets New CEO

Cheryl Sanders
January 14, 2020

"Boeing is one of the largest exporters, and with the 737 Max, I think that could impact GDP as much as 50 basis points this year".

Boeing's bestselling plane has been grounded since March after being involved in two crashes in five months that killed 346 people. It was later determined that a new software system on the plane forced it to nose dive, causing both accidents.

The compensation figures were disclosed in a regulatory filing late on Friday during a hard week for Boeing when it also released hundreds of internal messages - two major issues hanging over the company before new chief executive David Calhoun starts on Monday. It said it came to the decision because it is unclear when Boeing will resume making the once in-demand aircraft.

In a statement to Congress Thursday, Boeing said that the communications "raise questions about Boeing's interactions with the FAA" as the company sought to have federal regulators approve new flight simulators. "I am concerned that if [Lion] chooses to require a MAX simulator for its pilots beyond what all other regulators are requiring that it will be creating a hard and unnecessary training burden for your airline, as well as potentially establish a precedent in your region for other MAX customers", Forkner said his message to Lion Air.

In one email, an employee said the 737 Max was "designed by clowns who in turn are supervised by monkeys".

The FAA said: "Any potential safety deficiencies identified in the documents have been addressed".

U.S. Representative Peter DeFazio, who chairs the House Transportation and Infrastructure Committee, told reporters on Friday he advised Calhoun in a conversation he needs "to do something to relieve the pressure from Wall Street on your organization, which ultimately drove all this". He and other critics accused the company of putting profit over safety. He added: "The DCGA in India is apparently even stupider, if that's a word".

David Calhoun takes the helm of Boeing as CEO with a $7 million bonus incentive to get the 737 Max back in the air. Names of those who wrote the emails and text messages were redacted.

The Wichita-based company said the staff cuts will affect roughly 2,800 employees.

While Boeing says it will find other work for idled employees, employees at major suppliers are not so lucky. The plane itself was less than four years old.

According to a report by Forbes, employees at Boeing encouraged officials at the Indonesian Airline Lion Air to forego simulator tests for the 737 Max fleet, an aircraft that many airlines, including Lion Air, were preparing to use for commercial flights. Unable to adequately fix the software problem linked to those tragedies, Boeing decided in December to temporarily halt production of the plane, a decision that affects numerous suppliers plus the entire US economy.

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