Boeing CEO Admits To Company's 'Serious Missteps,' Outlines 'Sweeping Changes' To 'Restore Trust'

2 days ago

Boeing President and CEO Kelly Ortberg delivered testimony before the Senate Commerce Committee.

Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:

https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript

Stay Connected
Forbes on Facebook: http://fb.com/forbes
Forbes Video on Twitter: http://www.twitter.com/forbes
Forbes Video on Instagram: http://instagram.com/forbes
More From Forbes: http://forbes.com

Transcript

00:00Thank you, Chairman Cruz, Ranking Member Cantwell, and members of the committee for inviting

00:07me to testify and your willingness to work with us as we make fundamental changes to

00:12our company to restore trust and return the Boeing company to the American manufacturer

00:17it used to be.

00:19Since joining Boeing over six months ago, I've appreciated the opportunity to hear from many

00:24of you, and I'm committed to continue to work transparently with our regulators and with

00:30Congress.

00:32Last month, on March 10th, marked the sixth anniversary of the tragic loss of passengers

00:37and crew members on Ethiopian Airlines Flight 302.

00:41I know many victims' family members as well as those from Lion Air Flight 610 are here

00:46today, and I want to extend my personal condolences for the painful loss of their loved ones on

00:53our aircraft and offer my pledge to make the necessary changes so this never happens

01:00again.

01:02Boeing made serious missteps in recent years, and it's unacceptable.

01:07In response, we've made sweeping changes to the people, processes, and overall structure

01:12of our company.

01:14While there's still work ahead, these profound changes are underpinned by deep commitment

01:19from all of us to the safety of our products and services.

01:24This commitment to aviation goes well beyond Boeing.

01:27We play a crucial role in the U.S. economy and the national security, as evidenced by

01:31the U.S. Air Force's recent selection of Boeing to build the world's first sixth-generation

01:36fighter jet, the F-47.

01:39As the nation's largest exporter, Boeing has helped support nearly 1.8 million American

01:46jobs and contribute $84 billion annually to the U.S. economy.

01:52It all depends on us getting this right.

01:56I appreciate the opportunity today to provide the committee with an update on the actions

02:00we're taking to strengthen our commitment to safety-focused, quality-driven culture,

02:06the results we are seeing, and ongoing work we are doing, which is fundamental to our

02:13leadership in aerospace.

02:15For over a year, we've been working with the FAA on implementing recommendations from

02:20the AXA Section 103 Expert Review Panel, which this committee was instrumental in creating.

02:28Boeing is implementing a robust safety management system, a framework built on proven aviation

02:33industry best practices to proactively identify and manage safety risks that may impact our

02:40commercial and defense products.

02:43We submitted our plan to the FAA ahead of schedule, and we have a strategy to fully

02:48implement well ahead of the required deadline.

02:53Under the close oversight of the Department of Transportation and FAA leadership, we're

02:57implementing our safety and control and quality plans and directly addressing the findings

03:03from the FAA Special Audit with a focus on four major work areas, including reducing

03:09defects, enhancing employee training, simplifying processes and procedures, and elevating our

03:19safety and quality culture.

03:22Many aspects of this plan came from our employees, who generated over 26,000 improvement ideas,

03:29which we continue to evaluate and implement in support of strengthening our safety and

03:34quality.

03:35The impact of our efforts are already evident to our airline customers, based on their feedback

03:41about the improved quality of our aircraft.

03:45Culture is perhaps the most predominant change we're making as a company.

03:48We're aligning our culture and our incentives with the values everyone expects from Boeing

03:53– safety, quality, and integrity.

03:56This starts with our leadership, including me, spending more time listening and learning

04:01from our employees, working to restore trust, and holding leadership accountable.

04:08I moved to Seattle because I believe our leadership needs to get closer to the people designing

04:13and building the aircraft.

04:16As part of Boeing's future, we took actions in recent months to improve our financial

04:21position and completed contract negotiations with our union production workforce in Washington

04:28and Oregon.

04:29We also expect to finalize the acquisition of Spirit Aerosystems later this year, which

04:35is key to delivering for our commercial and defense customers and will help improve our

04:41overall quality and performance.

04:44I have confidence in our plan because I believe in the dedication of more than 660,000 employees,

04:5185 percent of whom are based in the U.S., and our nearly 10,000 suppliers across the

04:57country.

04:59No one is more committed to our company turnaround than our team.

05:03Working together, we're focused on connecting the world, protecting our freedoms, and supporting

05:09our economy.

05:10In closing, I want to reiterate my thanks to Chairman Cruz, Ranking Member Cantwell,

05:15and members of the committee, and I look forward to taking your questions.

Boeing CEO Admits To Company's 'Serious Missteps,' Outlines 'Sweeping Changes' To 'Restore Trust'

Category

Transcript

Recommended