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A Senate subcommittee is set to hold a hearing next week to examine Boeing's (BA) safety culture. This comes after airlines reported numerous safety incidents in relation to the company's Boeing 737 MAX jet line. Melius Research Managing Director of Aerospace, Defense & Space Robert Spingarn joins Market Domination to provide insight on the upcoming hearing,
Spingarn hones in on cultural issues within the company, noting the "distance" between the factory floor and executives. The divide was intensified by Boeing's decision to move its headquarters from Seattle to Chicago in the early 2000s, Spingarn says, calling the move a "disservice."
In light of Boeing's leadership shake-up, Spingarn believes "the changes are gonna be more significant than they were in the past," which may help the company see a turnaround. With the current CEO, Dave Calhoun, set to resign at the close of 2024, Spingarn is uncertain whether Calhoun will remain in the role if a successor is chosen sooner. He emphasizes the need for the next CEO to have an engineering background and production floor experience — recommending names like Pat Shanahan and Gwen Shotwell.
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This post was written by Angel Smith
Video Transcript
- Boeing facing a Senate subcommittee next week on the growing safety concerns plaguing the company. And this comes as the embattled airplane manufacturer searches for its next chief executive officer. Joining us to discuss is Robert Spingarn. He's Melius Research managing director and research analyst for the aerospace defense and space sectors.
So, obviously, Rob, it doesn't feel like the pressure on Boeing is letting up. Let's talk briefly about that committee hearing next week. What do you think we can learn new, if anything, out of that hearing? And what is the sort of best-case scenario look like for Boeing?
ROBERT SPINGARN: Well, I think the best case scenario is going to rely on a lot more than just what happens next week. We may learn some new details from the whistleblower or those who testify next week. And it's clear-- you know, it's important that there's government oversight here, that they're asking questions and turning up the pressure, so to speak. And we've seen, I think, incremental response from Boeing, and it's going to continue.
- And, Rob, I'm just curious, you know the company backwards and forwards. What do you make of the job Calhoun has actually done sort of navigating the company through this crisis? What grade do you give him, Rob?