Senate Commerce Chair Cantwell Calls Boeing CEO Calhoun To Testify Amid Regulatory Oversight Concerns: 'Why Did The FAA Drop The Ball?'

Author: Nabaparna Bhattacharya | July 12, 2024 12:42pm

Maria Cantwell, chair of the U.S. Senate Commerce Committee, announced that she has invited Boeing Company (NYSE:BA) CEO Dave Calhoun to testify before her committee.

This invitation comes as Cantwell prepares legislation aimed at increasing Federal Aviation Administration oversight of the aircraft manufacturers, Reuters reported.

Calhoun testified before a different Senate committee on June 19, but Cantwell indicated to reporters that she anticipates the outgoing CEO will also testify at a future hearing before her committee.

She noted that this might occur after the National Transportation Safety Board conducts an investigative hearing on August 6-7 regarding the mid-air emergency involving an Alaska Air Group, Inc. (NYSE:ALK) Boeing 737 MAX 9.

Also Read: ‘I’m Going To Die!’: Passengers Experience 15-Minute Nightmare During Alaska Air’s Harrowing Emergency, 65 Boeing 737 Max 9 Jets Grounded

“Our job here is why did the FAA drop the ball? What is it that we have to do to ensure that the FAA does its job?” Cantwell said, which Reuters noted.

Cantwell also stated her intention to soon unveil proposed legislation for the FAA, which would mandate the use of safety management systems (SMS).

She expressed concerns about the adequacy of the current FAA system and questioned why it wasn’t more robust.

Last month, FAA Administrator Mike Whitaker informed the committee that the agency had been “too hands off” in its oversight of Boeing before a mid-air emergency involving a new 737 MAX 9, the report read.

He acknowledged shortcomings in oversight, particularly highlighting the January 5 incident where a door panel blew out during a flight.

Safety management systems (SMS) consist of structured frameworks of policies and procedures designed to systematically identify and mitigate potential operational hazards before they can impact safety.

Since 2018, U.S. airlines have been mandated to implement SMS as part of their operational practices.

Additionally, certain aerospace companies, including Boeing, have voluntarily adopted SMS programs to enhance safety measures within their operations.

Price Action: BA shares are trading lower by 1.36% to $181.40 at last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Wikimedia Commons

Read Next:

• Legal Turbulence Shakes Boeing Stock: Is There More Altitude Ahead?

Posted In: ALK BA