XM does not provide services to residents of the United States of America.

FAA chief says Boeing safety culture reforms may take years



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>UPDATE 2-FAA chief says Boeing safety culture reforms may take years</title></head><body>

FAA's Whitaker emphasizes long-term safety culture reforms

Congress holds two days of hearings on Boeing

Senate panel takes up Boeing's safety turnaround efforts on Wednesday

Adds Boeing declining comment, share price, more comments from Whitaker

By David Shepardson

WASHINGTON, Sept 24 (Reuters) -The head of the Federal Aviation Administration told a U.S. House subcommittee on Tuesdaythat safety culture improvements at Boeing BA.N may take three to five years to complete.

"It is not a six-month program - it is a three-year to five-year program," FAA Administrator Mike Whitaker said at a two-hour hearing, adding he has spoken to Boeing CEO Kelly Ortberg and the company's board of directors about the need for safety culture reforms.

He said Boeing has made significant improvement in the short term. "On culture it is a long-term project .... There is progress but they are not where they need to be."

Congress is holding two days of hearings on Boeing and the company's safety turnaround efforts with a Senate panel taking up the issue on Wednesday.

In June, Whitaker said the agency was "too hands off" in oversight of Boeing before the January mid-air emergency in a new Alaska Airlines ALK.N 737 MAX 9 and faulted its prior audits. Boeing faces Justice Department and FAA probes into the Alaska incident.

Boeing has no choice but to make improvements, Whitaker said.

"There has to be culture change or they won't be able to go back to producing aircraft at the level they want," Whitaker said, adding the planemaker plans to hold a new safety training program.

Boeing declined to comment on Whitaker's remarks. Boeing shares, which are down 38% this year, fell 0.3% on Tuesday.

Whitaker, who has said the agency has permanently boosted use of in-person inspectors at Boeing, in January barred the planemaker from raising production of its best-selling 737 MAX until it makes quality and safety improvements.

That cap, Whitaker said on Tuesday, "really gives us the leverage we need to make sure these changes happen."

In July, Boeing agreed to plead guilty to a criminal fraud conspiracy charge and pay at least $243.6 million after breaching a 2021 Justice Department agreement.

The planemaker also agreed to spend at least $455 million to boost safety and compliance programs, overseen by an independent monitor for three years.

U.S. lawmakers expressed frustration with Boeing after hundreds died in fatal crashes on 737 MAX planes in 2018 and 2019.

"We don't want Airbus AIR.PA to get all the planes (sales) but Boeing keeps messing up," Representative Steve Cohen said. "For America's interests, Boeing needs to get its act together."



Reporting by David Shepardson; Editing by David Gregorio and Marguerita Choy

</body></html>

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.