Leslie JosephsCNBCMay 29, 2019
- Public confidence was hurt by two deadly 737 Max crashes, Boeing’s CEO says.
- Boeing 737 Max planes are grounded worldwide after two crashes since October killed a total of 346 people.
- Boeing’s CEO says demand for the planes will warrant higher production longer term.
Boeing BA has to regain the public’s trust that was hurt by two fatal crashes of 737 Max planes since October, the manufacturer’s CEO Dennis Muilenburg said Wednesday.
Aviation authorities across the world grounded Boeing’s 737 Max planes in mid-March following a crash of one of the aircraft in Ethiopia that occurred less than five months after a similar deadly accident in Indonesia. The crashes killed a total of 346 people.
Investigators have implicated an automated flight control system in both crashes. It was triggered by erroneous sensor data that pushed the nose of the planes down repeatedly into a deadly plunge.
“We know … that the public’s confidence has been hurt by these accidents and that we have work to do to earn and re-earn the trust of the flying public and we will do that,” Muilenburg told an investor conference in New York. “We are taking all actions necessary to make sure that accidents like those two … never happened again.”
Boeing’s stock is down about 16% since the March 10 Ethiopian Airlines crash that triggered the worldwide grounding.
Public confidence is a challenge not just for Boeing but for its customers: airlines. In the U.S., American AAL , United UAL and Southwest LUV have more than 70 of the planes in their fleets, combined, and have canceled thousands of flights during the peak summer travel season as the Max remains grounded. United and Southwest executives have said they will not charge passengers booked on the Max date-change or fare differences if they choose to switch to a flight operated by another plane.
Boeing has completed a software change to make the questioned automated system, known as MCAS, less powerful and give pilots greater control. The FAA and other countries’ aviation authorities plan to review the changes, along with updated pilot training material, before the jets can fly again. More
Ethiopian pilot pleaded for training after Lion Air Boeing 737 Max crash https://news.yahoo.com/ethiopian-pilot-pleaded-training-lion-204958229.html
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