31 January 2024, 15:32 GMTUpdated 1 hour agoBoeing is facing a significant challenge and an uncertain future as it works to regain trust, according to the company’s CEO Dave Calhoun. He made this acknowledgment while announcing the firm’s latest financial results on Wednesday. The company’s reputation has taken a hit since a panel of one of its 737 Max 9 jets detached during flight, raising renewed concerns about the safety of its aircraft. Mr. Calhoun has been making efforts to demonstrate that the company is addressing the situation seriously.In a call with financial analysts, he expressed an apology and emphasized that the company takes full responsibility, irrespective of the ongoing formal investigation into the cause. “We acknowledge that we caused the problem and we are fully aware of this,” he stated. “We must simply improve.” This update for investors is the first one since the incident on the Alaska Airlines flight, where the detached panel caused an emergency return to the Portland, Oregon airport. Mr. Calhoun had previously attributed the incident to a “quality escape”.Reports suggest that the panel was not installed correctly when the plane left Boeing’s factory. This has led to increased scrutiny of the company’s manufacturing practices, which critics say have been compromised as the company aimed to reduce costs and accelerate deliveries. The Federal Aviation Administration (FAA) has initiated an investigation into Boeing’s manufacturing process and has prohibited the company from expanding production of its popular 737 planes. Some of the company’s major airline customers have also raised concerns about potential delays in the approval of new versions of the 737 plane currently in development.Mr. Calhoun indicated that the company will comply with regulators. “I understand that these kinds of situations can cause frustration for our customers and investors due to potential delivery delays, but prioritizing quality and safety is crucial,” he stated. “We will take a cautious approach and will encourage and reward employees who speak up to slow down processes if necessary.”During the call with investors, Mr. Calhoun focused his prepared remarks on the company’s response to the Alaska Airlines emergency. The company also announced that it would not be providing formal financial guidance for the year 2024. “Although this is usually the time of year when we share or update our financial and operational objectives, now is not the appropriate time for that,” Mr. Calhoun wrote in a letter to staff accompanying the results.Analysts questioned Mr. Calhoun about the potential impact of the recent turmoil on the company’s future, with one inquiring how such a lapse could occur after the intense scrutiny the company faced following the crashes in 2018 and 2019.The revenue for the September to December period in the investor update showed that the manufacturing giant was currently producing 737 planes at a rate of 38 a month. Revenue has increased by 10% to $22 billion, while the company’s losses in the quarter narrowed to $283 million.
