S.Hrg.119-140

1[Senate Hearing 119-140]2[From the U.S. Government Publishing Office]34                                                        S. Hrg. 119-14056                SAFETY FIRST: RESTORING BOEING'S STATUS7                    AS A GREAT AMERICAN MANUFACTURER89=======================================================================1011                                HEARING1213                               BEFORE THE1415                         COMMITTEE ON COMMERCE,16                      SCIENCE, AND TRANSPORTATION17                          UNITED STATES SENATE1819                    ONE HUNDRED NINETEENTH CONGRESS2021                             FIRST SESSION2223                               __________2425                             APRIL 2, 20252627                               __________2829    Printed for the use of the Committee on Commerce, Science, and30                             Transportation3132[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]3334                Available online: http://www.govinfo.gov3536                                __________3738                   U.S. GOVERNMENT PUBLISHING OFFICE3961-334 PDF                  WASHINGTON : 20254041-----------------------------------------------------------------------------------4243       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION4445                    ONE HUNDRED NINETEENTH CONGRESS4647                             FIRST SESSION4849                       TED CRUZ, Texas, Chairman50JOHN THUNE, South Dakota             MARIA CANTWELL, Washington,51ROGER WICKER, Mississippi                Ranking52DEB FISCHER, Nebraska                AMY KLOBUCHAR, Minnesota53JERRY MORAN, Kansas                  BRIAN SCHATZ, Hawaii54DAN SULLIVAN, Alaska                 EDWARD MARKEY, Massachusetts55MARSHA BLACKBURN, Tennessee          GARY PETERS, Michigan56TODD YOUNG, Indiana                  TAMMY BALDWIN, Wisconsin57TED BUDD, North Carolina             TAMMY DUCKWORTH, Illinois58ERIC SCHMITT, Missouri               JACKY ROSEN, Nevada59JOHN CURTIS, Utah                    BEN RAY LUJAN, New Mexico60BERNIE MORENO, Ohio                  JOHN HICKENLOOPER, Colorado61TIM SHEEHY, Montana                  JOHN FETTERMAN, Pennsylvania62SHELLEY MOORE CAPITO, West Virginia  ANDY KIM, New Jersey63CYNTHIA LUMMIS, Wyoming              LISA BLUNT ROCHESTER, Delaware64                 Brad Grantz, Republican Staff Director65           Nicole Christus, Republican Deputy Staff Director66                     Liam McKenna, General Counsel67                   Lila Harper Helms, Staff Director68                 Melissa Porter, Deputy Staff Director69                     Jonathan Hale, General Counsel7071                           C O N T E N T S7273                              ----------74                                                                   Page75Hearing held on April 2, 2025....................................     176Statement of Senator Cruz........................................     177Statement of Senator Cantwell....................................     478Statement of Senator Fischer.....................................    1379Statement of Senator Klobuchar...................................    1580Statement of Senator Moran.......................................    1681Statement of Senator Duckworth...................................    1982Statement of Senator Blackburn...................................    2183Statement of Senator Lujan.......................................    2384Statement of Senator Markey......................................    2685Statement of Senator Rosen.......................................    2986Statement of Senator Blunt Rochester.............................    3087Statement of Senator Young.......................................    3288Statement of Senator Schmitt.....................................    348990                               Witnesses9192Kelly Ortberg, President and Chief Executive Officer, The Boeing93  Company........................................................     694    Prepared statement...........................................     89596                                Appendix9798Response to written questions submitted to Kelly Ortberg by:99    Hon. John Thune..............................................    39100    Hon. Jerry Moran.............................................    39101    Hon. Maria Cantwell..........................................    42102    Hon. Lisa Blunt Rochester....................................    45103104      SAFETY FIRST: RESTORING BOEING'S STATUS AS A GREAT AMERICAN105                              MANUFACTURER106107                              ----------108109                        WEDNESDAY, APRIL 2, 2025110111                                       U.S. Senate,112        Committee on Commerce, Science, and Transportation,113                                                    Washington, DC.114    The Committee met, pursuant to notice, at 10:07 a.m., in115room SD-G50, Dirksen Senate Office Building, Hon. Ted Cruz,116Chairman of the Committee, presiding.117    Present: Senators Cruz [presiding], Wicker, Fischer, Moran,118Sullivan, Blackburn, Young, Schmitt, Moreno, Sheehy, Cantwell,119Klobuchar, Markey, Baldwin, Duckworth, Rosen, Lujan,120Hickenlooper, and Blunt Rochester.121122              OPENING STATEMENT OF HON. TED CRUZ,123                    U.S. SENATOR FROM TEXAS124125    The Chairman. Good Morning. The Senate Committee on126Commerce, Science, and Transportation will come to order.127Before we discuss today's hearing, I want to touch on a128separate aviation matter.129    Last week, this committee held a hearing on the January13029th DCA mid-air collision. Brigadier General Matthew Braman,131the Director of the Office of Army Aviation, appeared on behalf132of the Army. At the hearing, both Ranking Member Cantwell and I133requested an Army memo outlining its standard operating134procedures for when Army helicopters could forego broadcasting135their locations and altitudes while flying near DCA airport.136    The Army had earlier refused to provide the memo to my137staff despite being allowed to do so by the independent crash138investigator, the NTSB. Given the opportunity to be139transparent, the Army again refused to commit to providing the140memo, which is entitled, ``Automatic Dependent Broadcast141Surveillance, or ADS-B Out Off Operations in the National142Airspace''.143    So Ranking Member Cantwell and I followed the hearing with144a joint letter explicitly requesting the unredacted memo. Now,145for the third time, we made clear to the General that he had 24146hours to provide that memo or there would be real consequences.147It has now been five days since the hearing, and the Army has148still not provided the memo.149    It begs the question, what doesn't the Army want Congress150or the American people to know about why it was flying151partially blind to the other aircraft and to the air traffic152controllers near DCA? This is not acceptable. I fully expect153that, should the Army continue to refuse to provide the154internal memo, this committee will exercise its full155authorities to compel its production.156    Events that have transpired since the January crash157underscore the precarious situation in the Nation's airspace.158Just last Friday, after the hearing, three flights were cleared159for takeoff at DCA while a military flyover was approaching160Arlington National Cemetery. The U.S. Air Force T-38 came161within just half of a nautical mile of lateral separation and162as close as 200 feet of vertical separation from a Delta163aircraft departing DCA for Minneapolis.164    The Delta Flight's TCAS sounded a resolution advisory,165alerting the pilots to a traffic collision and directing them166to continue upwards to avoid a collision. This is far too167close--seconds away from yet another disaster. The air traffic168center that controls airspace around DC notified DCA about the169flyover. That should have led to halted traffic.170    This serious communication breakdown is just the latest in171a string of missteps that signal that the air traffic172organization is under extreme stress. It is my expectation that173all Federal actors when involved in any incident in the174national airspace will be forthcoming when this committee175conducts its oversight to ensure flying remains the safest mode176of transportation.177    And I want to be explicit to the Army. Every one of us here178supports a strong national defense, but the Army does not have179at its option ignoring the U.S. Senate. And if there is another180accident, if another Black Hawk helicopter strikes another181passenger jet and murders 67 people because the Army refused to182change its policy of turning off ADS-B Out, and rather than act183proactively to protect people's lives the Army chose to protect184its bureaucratic ass, those deaths will be on the Army's hands.185None of us want that to happen. The responsible decision for186the Army to make is to provide that memo to this committee187today. And again, if the Army continues to stonewall, they will188face a subpoena from this committee.189    That brings us to today's hearing. It is essential for190members of this committee to hear directly from Boeing about191its manufacturing challenges. I am glad the CEO Kelly Ortberg192is here today and here voluntarily. Mr. Ortberg, welcome, and193thank you for testifying. For over a century, Boeing has been194building aircraft in America, beginning with the Boeing Model1951, C plane in 1916. William Boeing built a company that became196a household name. As the first World War broke out, the Boeing197Airplane Company began building aircraft for the U.S. Navy. By1981919, Boeing's first aircraft designed for commercial purposes199took flight. Throughout its storied history, Boeing aircraft200had been synonymous with excellence, quality, and safety in201flight.202    That was until October 2018 when a 737 MAX 8 aircraft203operated by Lion Air crashed into the Java Sea killing 189204people. Five months later, Ethiopian Flight 302 would crash205just after takeoff, killing 157 passengers and crew--346 souls206gone in an instant. Family members of those killed have since207become tireless advocates for aviation safety. I welcome those208family members who are in attendance today, and convey my209continued condolences for your loss, and express my gratitude210for your leadership.211    Thank you for turning your grief into advocacy. The MAX 8s212were grounded soon after the second crash for more than 18213months in the U.S., as Boeing worked with the FAA on a software214fix to prevent the technological breakdown that contributed to215both crashes. I was among the very first Senators to publicly216call for grounding the plane just days after the second crash.217When the MAX returned to the air in late 2020, many hoped the218worst was behind Boeing. But then on January 5, 2024, Alaska219Airlines Flight 1282 departed Portland International Airport on220route to Ontario, California.221    Approximately 10 minutes into the flight, the mid cabin222exit door plug, a section of the fuselage built to seal off223unused emergency exits, fell off the plane, leading to rapid224depressurization of the cabin. Oxygen masks dropped and225belongings were sucked out of the gaping hole. The National226Transportation Safety Board's review found that Boeing failed227to include at least three of the four bolts needed to properly228secure the door plug to the fuselage.229    Thankfully and miraculously, no lives were lost, but the230incident produced fresh doubt about Boeing's ability to safely231build planes. Repeated worries about production issues at232Boeing and its subcontractors has led many to question the233company's ability to design and manufacture a safe aircraft.234Efforts to cut corners in production or to move the next235production phase before necessary parts arrive have led to236unacceptable failures. Insufficient oversight of third party237suppliers and lack of sufficient internal auditing procedures238created an unsustainable lack of safety culture at Boeing.239    Since the Alaska Airlines 1282 incident, Boeing says it is240working hard to address those concerns, including by developing241a plan under FAA oversight for renewed safety and quality in242production processes. It recently adapted its Speak Up Program243to allow employees to confidently and anonymously submit a244concern when something seems to be going wrong.245    While the culture will not change overnight, Boeing must246continue its work with the FAA to bring safety and quality back247fully to its production processes. The FAA has been evaluating248key performance indicators, or KPIs, to track Boeing's progress249on key metrics.250    From discussions with the FAA and Boeing, I am told the251company is progressing well and is on track to simplify252needlessly complex processes, identify points of weakness,253reduce deficiencies, and ultimately improve safety. But these254conversations alone will not be the proper reassurance.255    This committee today wants to hear what specific and256concrete actions Boeing has taken to fix the problems. How is257Boeing progressing in its KPIs? What changes has it implemented258to ensure a strong safety culture? And how has Boeing adapted259its quality management system?260    We want to hear these answers, not just from the company's261CEOs, but from the company's managers, engineers, and262machinists. I know the workers of Boeing desperately want their263company to succeed too. So to those at Boeing facilities who264are watching, consider my door open to hearing directly from265you how you believe Boeing is turning a corner and fixing what266went wrong.267    President Trump is taking great strides to bring back268American manufacturing. I very much hope that Boeing is part of269that renaissance. I want Boeing to remain a beacon of American270excellence in manufacturing. Our country is better off271economically, our aviation system is safer, and our Nation is272stronger when Boeing is stronger.273    I now turn to Ranking Member Cantwell for her opening274statement.275    Voice. Mr. Chairman, can I have a moment please. Did you276receive----277    The Chairman. The Committee will come to order. The278Committee will come to order, and you will be removed if you279disrupt the proceedings again.280281               STATEMENT OF HON. MARIA CANTWELL,282                  U.S. SENATOR FROM WASHINGTON283284    Senator Cantwell. Mr. Chairman, first before we begin the285point of today's hearing, I too want to join you in our request286to asking the Department of Defense to give us information287regarding the ADB-S issue and the near--the recent near288collision, but obviously the tragic accident that happened with289a CRJ and a Black Hawk helicopter.290    The fact that the military asked for an exemption, and in291the granting of that exemption with the FAA, made it seem as if292that was going to be a rare exemption used only infrequently,293to later only find out that it had issued a statement to294Congresswoman from the D.C. area, Eleanor Holmes Norton, that295it was basically turning off ADB-S 100 percent of the time. And296I think that our FAA Acting Administrator shed some light on297this, but certainly not enough.298    And I agree with you, we need to have the answers.299Information that has been presented to the National300Transportation Safety Board, that information has to inform us301as to this interaction between transportation corridors that302are vital to protect for the public safety, and what the303Department of Defense is using the D.C. airspace for today, and304what are those safeguards. So I will work with you to get the305answers that we need from the Air Force. Thank you for holding306this important hearing. Welcome, Mr. Ortberg. Thank you for307being here.308    I also want to acknowledge the families that are here. As309the Chairman said, you have been playing a critical role in310aviation safety. People like Nadia Milleron, or Javier de Luis311who was an active member of the expert panel, have channeled312their unimaginable grief into very positive, purposeful actions313for the flying public. And I want to also acknowledge the brave314whistleblowers who come forward at great personal risk to315themselves to speak about the truth on quality and safety that316are so important and so instrumental.317    I know, Mr. Ortberg, the families are very worried about318the company's renegotiation of a plea agreement and the319corporate monitoring, and maybe we will have a chance to talk320about that today. We are here today though, Mr. Ortberg, to see321if Boeing and your new leadership are making the fundamental322changes that we would like to see to return the trust in the323Boeing Company to that iconic manufacturer.324    I think that for many decades, as the Chairman mentioned,325thank you for mentioning all of that history that includes much326success in the State of Washington, the company was the327pinnacle of manufacturing success. But we shouldn't forget that328that success is also critical to our national security, to our329economy.330    The company employs over 67,000 people in the state of331Washington. I think the whole supply chain is well over 130,000332people. And contributes $79 billion to the American economy.333Boeing remains the largest exporter, and I can assure you I334believe in more exports, and I would like to see a brighter335future for Boeing.336    And recently met with the University of Washington, and Mr.337Ortberg, in many parts of our aviation supply chain, to338understand how a tech hub could take us in a manufacturing339production to a higher rate of production. This I believe is so340important. I think that what we are trying to understand is341getting rid of safety inspectors is no tradeoff, when in342reality aviation innovation can help us with both quality and343safety.344    However, the company must address these manufacturing345quality issues. As the Chairman mentioned, the two 737 MAX jet346crashes killing 346 people, and the Alaska door plug that347happened last year. We know the economic impacts of this.348Obviously the MAX, because of a shortcut in safety, cost $35349billion to the company. The door incident and the financial350costs to that are just not even good business.351    But we owe it to the families today to make sure that we352are implementing the changes that are necessary to make sure353that we are the leaders in aviation safety. I believe that354starts with a robust safety management system, and that is what355our OD--that is what our expert panel found, a requirement from356our safety bill to listen to NASA and to other industry leaders357about what would help us in our safety culture. And they358basically said that these were the important elements of a359mandatory safety management system.360    So today, Mr. Ortberg, I will be asking you about that. And361I know that the reputation of the company in the past has been362about instituting safety, but in 2020 when we passed the363aviation safety bill, the law put the FAA back in charge of364approving ODA unit members and restricting the FAA from365delegating critical tasks relating to critical design features.366And I will want to ask you about that today.367    And how, if the company had a safety management system, yet368we still saw the problems of the door plug and other issues. So369these issues about inspector staffing models, service370difficulty reports, whistleblower retaliation are all issues I371hope we address today at this hearing.372    This country needs a strong FAA to do its oversight job.373The Boeing organizational design authorization that is expiring374soon will need to be reauthorized--will need to be pushed375through by the FAA. The last Federal Aviation Administration,376Boeing Aviation Safety Oversight Office Leader, Ian Won,377decided to give an extension for 3 years hoping that Boeing378would make and show progress on that oversight authority before379issuing a longer ODA. So we would love to hear about that380today, whether the standards laid out in Ian Won's oversight381are being met at the Boeing company.382    The FAA needs to continue to play that strong oversight383role, and the FAA needs to keep pace with technology. If the384FAA--and I think NASA could be playing a larger role here in385helping on technology. But the Inspector--the Department of386Transportation's Inspector General identified 16 weaknesses in387the FAA's oversight of Boeing's quality management. Concluding388that the FAA was, ``not effective at identifying and resolving389production issues.'' And this was despite conducting over 300390audits at Boeing in a three-year period of time. And yet the391FAA wasn't able to detect these critical manufacturing392deficits.393    The issue of the Verification Optimization Program that was394to literally--basically replace quality inspectors with395mechanic self-inspection I think was the wrong approach. And396the airworthiness standards for both the MAX 7 and MAX 10,397instead of the design fixes, there were many issues that the398Inspector General found were shortcomings. So we as a nation399want to be the leader in aviation, we have to be the leader in400aviation safety. Mr. Ortberg, you need to channel Bill Boeing.401You need to change the safety culture at Boeing, and we are402glad you did that by starting your tenure in Seattle.403    That matters, and that oversight matters in helping us404resume the leadership position in aviation. So I look forward405to your testimony this morning, those critical steps that the406company is taking to restore the safety culture and the407manufacturing excellence so our country can again be the leader408in aviation and aviation safety. Thank you, Mr. Chairman.409    The Chairman. Thank you, Ranking Member Cantwell. Joining410us today now is Mr. Kelly Ortberg, the President and Chief411Executive Officer of the Boeing Company. Mr. Ortberg joined412Boeing in this role in August 2024, bringing with him over 35413years of experience in the aerospace industry. Mr. Ortberg, you414are recognized for your opening statement.415416   STATEMENT OF KELLY ORTBERG, PRESIDENT AND CHIEF EXECUTIVE417                  OFFICER, THE BOEING COMPANY418419    Mr. Ortberg. Thank you, Chairman Cruz, Ranking Member420Cantwell, and members of the Committee for inviting me to421testify and your willingness to work with us as we make422fundamental changes to our company to restore trust and return423the Boeing Company to the American manufacturer it used to be.424Since joining Boeing over six months ago, I have appreciated425the opportunity to hear from many of you, and I am committed to426continue to work transparently with our regulators and with427Congress.428    Last month, on March 10, marked the sixth anniversary of429the tragic loss of passengers and crew members on Ethiopian430Airlines Flight 302. I know many victims' family members, as431well as those from Lion Air Flight 610, are here today, and I432want to extend my personal condolences for the painful loss of433their loved ones on our aircraft and offer my pledge to make434the necessary changes so this never happens again.435    Boeing made serious missteps in recent years, and it is436unacceptable. In response, we have made sweeping changes to the437people, processes, and overall structure of our company. While438there is still work ahead, these profound changes are439underpinned by deep commitment from all of us to the safety of440our products and services. This commitment to aviation goes441well beyond Boeing. We play a crucial role in the U.S. economy442and the national security, as evidenced by the U.S. Air Force's443recent selection of Boeing to build the world's first sixth444generation fighter jet, the F-47. As the Nation's largest445exporter, Boeing has helped support nearly 1.8 million American446jobs and contribute $84 billion annually to the U.S. economy.447It all depends on us getting this right.448    I appreciate the opportunity today to provide the Committee449with an update on the actions we are taking to strengthen our450commitment to safety focused, quality driven culture, the451results we are seeing, and ongoing work we are doing, which is452fundamental to our leadership in aerospace.453    For over a year, we have been working with the FAA on454implementing recommendations from the ACSA Section 103 Expert455Review Panel, which this committee was instrumental in456creating. Boeing is implementing a robust safety management457system, a framework built on proven aviation industry best458practices, to proactively identify and manage safety risks that459may impact our commercial and defense products.460    We submitted our plan to the FAA ahead of schedule, and we461have a strategy to fully implement well ahead of the required462deadline. Under the close oversight of the Department of463Transportation and FAA leadership, we are implementing our464safety and control--and quality plans, and directly addressing465the findings from the FAA's special audit with a focus on four466major work areas, including reducing defects, enhancing467employee training, simplifying processes and procedures, and468elevating our safety and quality culture.469    Many aspects of this plan came from our employees, who470generated over 26,000 improvement ideas, which we continue to471evaluate and implement in support of strengthening our safety472and quality. The impact of our efforts are already evident to473our airline customers, based on their feedback about the474improved quality of our aircraft.475    Culture is perhaps the most predominant change we are476making as a company. We are aligning our culture and our477incentives with the values everyone expects from Boeing,478safety, quality, and integrity. This starts with our479leadership, including me spending more time listening and480learning from our employees, working to restore trust, and481holding leadership accountable.482    I moved to Seattle because I believe our leadership needs483to get closer to the people designing and building the484aircraft. As part of Boeing's future, we took actions in recent485months to improve our financial position and completed contract486negotiations with our union production workforce in Washington487and Oregon.488    We also expect to finalize the acquisition of Spirit489AeroSystems later this year, which is key to delivering for our490commercial and defense customers and will help improve our491overall quality and performance. I have confidence in our plan492because I believe in the dedication of more than 160,000493employees, 85 percent of whom are based in the U.S., and our494nearly 10,000 suppliers across the country.495    No one is more committed to our company turnaround than our496team. Working together, we are focused on connecting the world,497protecting our freedoms, and supporting our economy. And in498closing, I want to reiterate my thanks to Chairman Cruz,499Ranking Member Cantwell, and members of the Committee, and I500look forward to taking your questions. Thank you.501    [The prepared statement of Mr. Ortberg follows:]502503Prepared Statement of Robert K. Ortberg, President and Chief Executive504                      Officer, The Boeing Company505    Thank you, Chairman Cruz, Ranking Member Cantwell, and Members of506the Committee, for inviting me to testify and for your willingness to507work with us as we make fundamental changes to our company to restore508trust and return The Boeing Company to the iconic American manufacturer509it used to be.510    Since joining Boeing over six months ago, I have appreciated the511opportunity to hear from many of you, and I am committed to continuing512to work transparently with our regulators and Congress.513    Last month, on March 10, marked the six-year anniversary of the514tragic loss of passengers and crew members on Ethiopian Airlines Flight515302. I know many victims' family members, as well as those from Lion516Air Flight 610, are here today. I want to extend my condolences for the517painful loss of their loved ones on our aircraft and offer my pledge to518make the necessary changes so this never happens again.519    Boeing has made serious missteps in recent years--and it is520unacceptable. In response, we have made sweeping changes to the people,521processes, and overall structure of our company. While there is still522work ahead of us, these profound changes are underpinned by the deep523commitment from all of us to the safety of our products and services.524    This commitment to aviation safety goes well beyond Boeing. We play525a crucial role in the U.S. economy and national security, as evidenced526by the U.S. Air Force's recent selection of Boeing to build the world's527first sixth-generation fighter jet--the F-47. As the Nation's largest528exporter, Boeing has helped support 1.8 million American jobs and529contributes $84 billion annually to the U.S. economy. It all depends on530us getting this right.531    I appreciate the opportunity today to provide the Committee with an532update on the actions we have taken, the results we are seeing, and the533ongoing work we are doing to strengthen our safety and quality, which534are fundamental to our leadership in aerospace.535    For over a year, we have been working with the FAA on implementing536recommendations from the Aircraft Certification, Safety, and537Accountability Act of 2020 Section 103 expert review panel, which this538Committee was instrumental in creating.539    Boeing is implementing a robust Safety Management System, a540framework built on proven aviation industry best practices, to541proactively identify and manage safety risks that may impact our542commercial and defense products. We submitted our plan to the FAA ahead543of schedule and have a strategy to fully implement well ahead of the544required deadline.545    Under the close oversight of the Department of Transportation and546FAA leadership, we are implementing our Safety and Quality plan and547directly addressing the findings from the FAA's special audit with a548focus on four major work areas, including reduction of defects,549enhancing employee training, simplifying processes and procedures, and550elevating our safety and quality culture. Many aspects of this plan551came from our employees, who generated over 26,000 improvement ideas,552which we continue to evaluate and implement in support of strengthening553safety and quality. The impact of our efforts is already evident to our554airline customers based on their feedback about the improved quality of555our aircraft.556    Culture is perhaps the most predominant change we are making as a557company. We are aligning our culture and our incentives with the values558everyone expects from Boeing--safety, quality and integrity. That559starts with our leadership--me included--spending more time listening560and learning from our employees, working to restore trust, and holding561leadership accountable. I moved to Seattle because I believe our562leadership needs to get closer to the people designing and building our563aircraft.564    As part of securing Boeing's future, we took actions in recent565months to improve our financial position and completed contract566negotiations with our unionized production workforce in Washington and567Oregon. We also expect to finalize the acquisition of Spirit568AeroSystems later this year, which is key to delivering for our569commercial and defense customers and will help improve overall570performance and quality.571    Looking forward, Boeing continues to invest in innovation and572manufacturing to remain competitive globally. This includes investments573in advanced combat aircraft manufacturing, maintenance facilities and574parts, commercial manufacturing, and new product development, all of575which will power the Nation's economy.576    I have confidence in our plan because I believe in the dedication577of our more than 160,000 employees--85 percent of whom are based in the578U.S.--and our nearly 10,000 suppliers across the country. From Texas to579Washington, Missouri to California, Arizona to South Carolina, and580Kansas to Pennsylvania, these are hardworking men and women building581our products.582    No one is more committed to turning our company around than our583team. Working together, we are focused on connecting the world,584protecting our freedoms, and supporting our economy.585    In closing, I want to reiterate my thanks to Chairman Cruz, Ranking586Member Cantwell, and Members of the Committee. I look forward to taking587your questions.588589    The Chairman. Thank you, Mr. Ortberg. Let me start with590just a simple question, which is, can travelers trust Boeing?591346 people died in the two 737 MAX 8 crashes. We are extremely592fortunate that no one died in the door plug incident. Since5932018, Boeing's mistakes have caused many people to question594whether Boeing is still capable of making safe aircraft.595    Mr. Ortberg, what can you say here to the millions who will596board a Boeing plane this year, to the millions who will put597their children on the plane? I and I suspect every member of598this panel fly Boeing planes every single week. What can you599say to the flying public as to why they should trust that a600Boeing plane is safe?601    Mr. Ortberg. Senator, the Boeing aircraft 737 MAX602airplanes, you know, take off and land every 2 seconds of the603day--safely take off and land every 2 seconds of the day. I am604not denying the horrible incidents that you have outlined. We605need to take immediate action, and we are taking action to make606sure those accidents never happen again.607    My family flies on those aircraft as well, and it is608critically important that we rebuild trust. And the only way we609are going to do that is by building high quality airplanes,610having the metrics out of our quality system that show that we611are making improvements. And I want everybody to know the612entire Boeing team is absolutely committed to building the613highest quality aircraft in the world.614    Air traffic is the safest mode of transportation, and we615need to continue that and continue to find and learn if there616is incidences so that these don't turn into tragic accidents in617the future.618    The Chairman. As I mentioned, the NTSB's investigation of619the Alaska Airlines door plug incident revealed that it was620caused by manufacturing errors at Boeing. Mr. Ortberg, you621joined Boeing more than 7 months after the door plug incident.622What went wrong with the door plug, and what specifically has623Boeing done to correct this safety lapse?624    Mr. Ortberg. Senator, first of all, it is unacceptable that625an aircraft left our factory without that door plug properly626installed. And let me just make that perfectly clear, that can627never--never happen again. One of the things that is currently628in NTSB investigation, as you are aware on that. We are not629waiting for the NTSB to finish their investigation. We have630taken immediate action. One of the first actions was to work631with our airline customers and the FAA to go inspect all the632aircraft out in the field.633    And we have done that and ensured that there are no other634incidences of a door plug not being installed properly in the635field. The second thing that we did is we found that the proper636paperwork was not completed when the door plug was removed in637our factory. We have gone through extensive retraining of our638workforce to make sure they understand that that violated our639policy and that they have to complete the proper paperwork.640    We have got--we have eliminated, reduced the number of641people who can actually do the modifications for the door plug,642so that in the future we have fewer people that are allowed to643even touch and remove the door plugs. In addition, one of the644contributing factors is we identified that the door plug needed645to be removed in order to do some repairs on the aircraft that646were a result of defects in the fuselage.647    Those defects come from our fuselage supplier from Spirit648AeroSystems in Wichita. The airplane moved down our factory649line too far after we identified those defects, which650contributed to the risk that we--the risk of the door plug not651being properly installed. So we have made changes to our652process, pushed all those defects back up to Spirit AeroSystems653so we are not bringing those into our factories.654    And so far, sir, we have seen a 56 percent reduction in655defects coming out of Spirit. So that is going to help us656significantly. We have also implemented a move ready safety657process so the airplane cannot move down the production floor658if equipment is not installed, or rework has not been659accomplished.660    If the aircraft has equipment not installed, we go through661a safety risk assessment and look at the risk of moving the662aircraft. And we have done that 800 times. And I can tell you,663of the 800 times, 200 times we have not moved the aircraft. We664have held the aircraft because moving it would incur risk to665the production system.666    And we have also seen a 50 percent reduction in work that667has traveled down the factory floor. We continue to work in668improving those numbers. Those are one of the KPI indicators669that we are using with the FAA. So we have made drastic changes670to our internal process to ensure that this will never happen671again.672    The Chairman. OK. Final question. I am sure you are aware673that whistleblowers and others, including Ethiopian674authorities, have suggested manufacturing errors, particularly675with electrical wiring, contributed to the MAX crashes.676    Mr. Ortberg, is this an issue you have discussed with677Boeing employees since joining the company? And if so, what is678your opinion on whether there were also manufacturing defects679that may have led to the sensor defect?680    Mr. Ortberg. Senator Cruz, obviously that happened before I681joined the Boeing Company. My understanding was that the cause682of the crash was the MCAS design, and those designs changed--683the MCAS has been redesigned and design changes have been684incorporated in all aircraft. I am not aware of any electrical685wiring issues associated with that, but I would be glad to look686into that and get back with you.687    The Chairman. So, just to be clear, your testimony as you688have not had conversations with Boeing employees about whether689there were electrical issues that also contributed to that690crash?691    Mr. Ortberg. Not specifically, no.692    The Chairman. OK. Thank you. Ranking Member Cantwell.693    Senator Cantwell. Thank you, Mr. Chairman. Mr. Ortberg,694thank you for the change in tone from the top at Boeing about695the safety culture and the focus that you outlined in your696testimony, those four principles. I wanted to drill down on the697safety management system.698    It has been a voluntary compliance but our law--well,699really actually in the implementation of the 2015 settlement700agreement, it was required to implement a safety management701system, and then since we have passed legislation for a702mandatory safety management system. You mentioned the expert703panel.704    I think they were very critical of the SMS structure that705existed at Boeing under that voluntary structure. So how is it706that this is going to change, and will you commit today to a707fully functioning safety management system that meets the FAA708standards?709    Mr. Ortberg. Senator, you are right, we have been operating710under a voluntary SMS for approximately the last 4 years. And I711think the Alaska door accident was a cathartic moment for all712of us to step back and look at what happened and how could this713happen within the safety management system.714    We had the expert panel. We also brought in outside715consultants. The FAA did a comprehensive audit of our systems,716and we found significant gaps in many of the processes that we717used to implement our safety management system. Those gaps are718all a part of our safety and quality plan that we are working719with the FAA to improve the overall performance.720    I am absolutely committed to a mandatory safety management721system. I appreciate your leadership there. And we are working722to get that done. Actually, I would like to have that in place723by October of this year. We have submitted our draft to the724FAA, and we are absolutely committed to moving to a mandatory725SMS.726    Senator Cantwell. Thank you. Thank you for that commitment.727The expert panel couldn't be--have been more specific about728this particular recommendation, and I think the industry writ729large also thinks it is the gold standard. So certainly730appreciate that. Now, when it comes to the ODA, FAA oversight731and the delegation of authority, this is not--I think the732person in charge of this at Boeing has recently been let go or733put on leave.734    So you can tell me how you plan to bolster this position735within the company. But when you look at the issues like the736MAX anti-icing system issue and the 737 rudder actuator, and737these are issues that have been, you know, the subject of, you738know, much investigation. In one instance with my colleague who739is not here yet, she and I joined a letter asking, you know,740for this issue to be addressed and not delayed.741    So, I think the Committee is getting a big sense that the742NTSB makes recommendations, the FAA kind of ignores them, and743then it takes a long time for them to be addressed.744    And what we are trying to understand is in the ODA process,745what structure and oversight--before we hear from the FAA on746this point, what do you think about these incidents not being747addressed in the oversight process, you know, like the anti-748icing system and the rudder issue?749    Mr. Ortberg. Senator, we have taken a look at the IG report750which has several recommendations, a series of recommendations751to the FAA. Many of those recommendations require support from752the Boeing Company to provide information and data. So I can753assure you they will get full support to ensure that they have754access to all the information they need.755    Now, on a higher level, the ODA, as you know, is a756delegation that the FAA provides to us to do some work that a757typical FAA inspector would do. The--I think the ODA is an758important element of the success of the aerospace industry.759    We--the people that are ODAs in our organization operate760independently. They operate on behalf of the FAA. They have761direct line of communication with the FAA. And we have made--as762a part of the feedback, we have made changes to our ODA763organization structure to ensure that they are not feeling764pressure from management to do things that are not proper, and765I think that has been effective.766    We put an ombudsman in place for the ODAs so they have767someone to go to if they see something that they don't like, or768they are feeling any kind of pressure, they can go to the769ombudsman. I think that is helping. And we also survey them to770look--to continue to ask them do they feel undue pressure from771management or undue oversight from management to do their jobs.772    Senator Cantwell. I see that my time is expiring but I just773want to get in this point. You are committing to fix those774flaws that I just mentioned. And you--we can come back to this775maybe in a second round, but what are you doing to fix the776design and manufacturing defects so that they are not submitted777to begin with to the FAA?778    And so, I think as we have to think about our oversight of779FAA and the role they play. We are trying to understand what780isn't working in this process. That both at the manufacturing781level, we have these defects, and then yet they get, you know,782checked off on a list, oh yes, that is in compliance. And so,783we are--I don't know if you have a quick answer to that but.784    Mr. Ortberg. Senator, we are working, I mentioned the785fuselage improvements. We have got over a thousand applications786where we are working with our supply chain to improve the787number of defects. I think a main component of that is we have788to get to root cause. We can't just fix the defects. We have to789get to root cause and make sure the defects go away.790    So we have enhanced our focus on root cause analysis and791ensuring that we are understanding where these defects are792being generated and that we are stopping the defect generation793so that we are not dealing with them. That is the fundamental794improvement that I think we will see.795    Senator Cantwell. And then making sure that the attention796is focused not by a business person who is saying we have to go797fast.798    Mr. Ortberg. Yes. Look, I have--I want to be clear. I have799not provided financial guidance to Wall Street for the800performance of the company. I have not provided guidance on how801many aircraft we are going to deliver. We--I have gone and802gotten financial coverage so that we can allow our production803system to heal. I am not pressuring the team to go fast. I am804pressuring the team to do it right.805    Senator Cantwell. Thank you.806    Mr. Ortberg. That is the most important thing we can do at807this point.808    Senator Cantwell. I agree. Thank you so much, Mr. Chairman.809Thank you.810    The Chairman. Thank you. Senator Fischer.811812                STATEMENT OF HON. DEB FISCHER,813                   U.S. SENATOR FROM NEBRASKA814815    Senator Fischer. Thank you, Mr. Chairman. First, I want to816thank the family members who are here today representing and817advocating for their loved ones who lost their lives on818Ethiopian Airlines Flight 302 and Lion Air Flight 610.819    And I want to offer you all my condolences. This committee820has a responsibility to work with the airline industry and FAA821to ensure tragedies like these do not happen again. Mr.822Ortberg, I appreciated the opportunity to connect with you823earlier this week and to discuss your ongoing efforts to enact824much needed reforms at Boeing.825    In our prior conversation, we discussed some of the more826challenging aspects of implementing Boeing's safety and quality827plan. Specifically, you acknowledged the company's culture as828being the most difficult. While I can appreciate the difficulty829in reforming longstanding cultural challenges to a corporation830as large as yours, and while I agree that it needs to be831addressed, that is a long-term change, and it does not832necessarily produce immediate results.833    So in the interim, as you look to instill confidence with834the flying public, what challenges and success has Boeing had835in enacting that safety and quality plan and meeting the six836key performance indicators that are outlined in that plan?837    Mr. Ortberg. Yes, so as you mentioned Senator, the safety838and quality plan has a series of tasks to improve our safety839and quality, but we also have metrics that we are using to840actually measure the--are those tasks actually generating the841results that we want. We have--those six metrics have control842limits with them, what is acceptable, what is unacceptable. We843monitor those on a regular basis. These are metrics that we844share with the FAA.845    It is on a digital dashboard. They can look at it at any846time, and they do. And we look at both trends, how are the--how847are those metrics performing day on, day on, day on, and what848does the trend look like, but also what does the absolute849number look like. So far--and it is early, admittedly early in850our production recovery system.851    So far, we are seeing the results that we expect. The key852metrics are trending in the right direction. They are not all853exactly where we want them to be, and we didn't expect that. So854we continued to measure that. We do that actually across our855fleet of aircraft, not just on the 737 MAX program. Those856metrics will be the basis that we will use for determining are857we able to go to a higher production rate.858    And if those metrics are not showing production stability,859then we won't request moving to a higher production rate. We860monitor them regularly and we talk with the FAA monthly about861how are we doing with the key performance indicators.862    Senator Fischer. And I appreciate and--the focus on safety.863We have to have that. But in our call, I also brought up to you864the concern with the production rate, with the timeliness of865it. And you told me that Boeing is currently delivering planes8662 years behind schedule, about 2 years behind schedule.867    My concern with those delays are the potential for negative868consequences for both national security and for commercial869operations. How, when you are looking ahead at production870rates, how long do you think--and I know it is early in your871tenure, but Boeing should be able to deliver planes in a timely872fashion while also meeting the high safety and quality873assurance expectations from the FAA, from your customers, and874from this committee--that this committee expects.875    So what steps do you see Boeing taking to reduce the876production delays while still adhering to the plans?877    Mr. Ortberg. Well, Senator----878    Senator Fischer. So are those the metrics, the six steps,879the metrics that you are seeing, and when do you anticipate--in880a good setting, when do you anticipate to be able to offer some881confidence to the public on that?882    Mr. Ortberg. Senator, just to be very clear, we won't ramp883up production if the performance isn't indicating a stable884production system. We will continue to work on getting to a885stable system.886    So I have not provided a date as to when we are going to887get up to a 38 a month rate. I suspect it will be sometime this888year. I am hopeful that that is where the production rates or889the production stability allows us to go. I will tell you, I890have talked to almost all of our airline customers and they891know--they are frustrated with us because we are late, as you892point out, on aircraft delivery, but they also know that we893have got to do this right.894    And I can tell you, I have got 100 percent support from895them to do it right. I am not going to push to get the aircraft896and end up in having additional issues. Get it right. We will897be patient with you. And, you know, the good news is, is that898our customers have stuck with us, and I expect that they will.899    And once we get the production system stable, we will move900up in production rate. I don't think we will ever get to where901we recover to all those deliveries. I don't think we will ever902get to a rate where we are--where people have their airplanes903all when they originally ordered them. But I think our904customers understand that and they are working with us.905    Senator Fischer. And we want you to be successful. Thank906you.907    Mr. Ortberg. Thank you.908    The Chairman. Thank you. Senator Klobuchar.909910               STATEMENT OF HON. AMY KLOBUCHAR,911                  U.S. SENATOR FROM MINNESOTA912913    Senator Klobuchar. Thank you much, Chairman. I just want to914start by expressing my deepest sympathies and appreciation to915those who are here today who lost loved ones. We just lost a916Minnesotan, Wendy Joe Schafer, in the tragic mid-air collision917in Washington, D.C., and my thoughts are with all of you, and I918hope we can make this better.919    As Chair Cruz noted in his opening statement, there was a920recent close call unrelated to Boeing involving a Delta jet921that was filled with Minnesotans, including a member of my922staff, that came within 500 feet of a military plane. I923actually talked to the DOD over the weekend, Mr. Chairman, and924they have assured me this is going to be an immediate FAA925investigation. From what I understand, this was not about the926airline, and we have to figure out what went wrong here.927    So, my questions of you, Mr. Ortberg--thank you for being928here. In your testimony, you discussed the efforts to elevate929Boeing safety and quality culture and how you have engaged930workers in the process, generating 26,000 improvement ideas931from employees.932    Could you talk about how you have--what work you have done933on open communications and how are you ensuring that employees934continue to speak out on issues when they see them?935    Mr. Ortberg. Thank you, Senator. The culture change and936allowing people to speak up is critically important to me and I937think to the success in the long term of the Boeing Company. We938have made significant changes in our business processes to get939people--as I mentioned, closer to the people building and940designing the aircraft.941    We have initiated a culture change process within the942company, which, again, I believe culture starts with the values943and behaviors at the top, the leadership. We need to walk the944talk and people need to see that in the organization.945    We are putting those values and behaviors into our946performance management system so that people are evaluated, and947their annual performance is determined based on how they be--948how they exhibit those values and behaviors.949    We are putting it into our training program so that we are950training our leaders. We are also making leadership selection951decisions based on how do these people exhibit the behaviors in952the company.953    Senator Klobuchar. OK, thanks. Go ahead. You have one more954thing.955    Mr. Ortberg. My experience is that once people understand956what behaviors are acceptable, they tend to align to them. It957is when we have a leadership that maybe is not exhibiting958those--the behaviors that are on the poster, on the wall, but959not exhibiting those--people are smart. They figure out how to960understand what they are really being rewarded on.961    So we are really working to change that culture, and I962think get to a culture where people feel free to speak about963issues and communicate across their team so that we can get964issues resolved quickly before they turn into bigger issues.965    Senator Klobuchar. Thank you. We also have the issue of966pipeline of workers. And the Wall Street Journal did a report967on this just last year. Senator Moran and I got included in the968FAA reauthorization, our bill that created a new grant program969to train aircraft manufacturing technical workers. Could you970talk about what you have done to make sure that we are getting971in more workers, and what we should be doing better on that972front?973    Mr. Ortberg. Senator, we spend a lot of activity in early974STEM education and supporting STEM related activities to try to975get more young students into STEM fields to support the work976that we need.977    Our workforce is relatively stable right now, which is978good. I think we came out of COVID and had significant979workforce demand. We have been through that. Our focus right980now is on training and ensuring the people that we have brought981in are effective and efficient in what they are doing.982    Senator Klobuchar. Thank you. Just one last question983following the Alaska Airlines Flight 1282, the door blowout,984can you walk through what the enhanced oversight, because since985then you have been under this enhanced oversight--walk through986it very quickly compared to the previous oversight, FAA987oversight.988    Mr. Ortberg. So, there is additional formal inspections989being done at Boeing. There is more formal inspections being990done at Wichita. Every door, whether it is a door plug or an991active door, is going through additional inspection to make992sure there is no workmanship errors that would require rework993at a later date in our production facility.994    And as I said, we are seeing very good improvement in the995overall quality of the fuselages, and particularly around any996door related issues. We have added significant amount of997inspection.998    Senator Klobuchar. OK. Thank you.999    The Chairman. Thank you. Senator Moran.10001001                STATEMENT OF HON. JERRY MORAN,1002                    U.S. SENATOR FROM KANSAS10031004    Senator Moran. Chairman, thank you. I am told that, with1005your consent, I get to make an opening statement, and I am1006grateful for that because I want to follow up on the point that1007you made in your earlier indication of a failure to hear a1008return from the Army. And just to highlight the issue and its1009broad magnitude and consequence, the NTSB report in regard to1010Flight 5342 originating in Wichita, Kansas, and having its1011fatal conclusion at Reagan National, now 63 days ago.1012    NTSB's preliminary report indicates that within the files1013of the FAA, there were--the indication is that there were101415,000 near misses between a helicopter and a commercial1015airplane at Reagan National between October 21 and December101624--15,000 near misses.1017    NTSB also found in the records of the FAA it is possible1018for a helicopter on Route 4 to have as little as 75 feet of1019vertical separation from airplanes on approach to Runway 33.1020That suggests to me there are significant challenges and1021potential tragedies that take place at Reagan on a consistent1022basis known but not responded to over a long period of time.1023    And one of those issues, because of the potential for those1024near misses and the fact that they are happening on such a1025frequency--with such a frequency, is the issue of ADS-B Out for1026which the Chairman and the Ranking Member are seeking1027information from the Army as to why at potentially on all1028occasions ADS-B Out is turned off.1029    And so, Mr. Chairman, I am grateful for your efforts and1030your indications of how seriously you take this circumstance1031and your demand for information. In today's hearing, now to my1032opportunity to ask questions, this accident that occurred 631033days ago reminds me of the fragility of life and it makes me1034even more compassionate and concerned for the victims of those1035who died in previous crashes.1036    It is a wakeup call and an opportunity to reassess things1037that are really important in life, and we need to do1038everything, as we know we need to do, to make certain that1039those who fly know they are safe because they are safe.1040    I am going to ask you, Mr. Ortberg, about a number of1041things related to Wichita and manufacturing there, but I want1042to highlight my view that before we talk about the economic and1043job opportunities that occur with your company, that the most1044important thing for a future of the aviation industry is the1045public knows they can fly safely because they can.1046    In the absence of that, there really is no future for the1047aviation--for the commercial aviation industry. And so, safety1048undergirds everything that you need to do and that we need to1049do for a future for your company and a future for the aviation1050industry in our country. So, I want to ask you specifically1051about some things in Wichita. You were kind enough, you were1052gracious enough on your third day on the job to visit Wichita.1053    You have indicated in your testimony the role of Spirit1054AeroSystems to the Boeing Company. And I don't know that you1055said this in your testimony. If you did, I will repeat you, but1056otherwise, Boeing is in the process of acquiring Spirit1057AeroSystems.1058    That is a hugely important company in Kansas, our largest1059private employer, employing about 12,000 people. And I want to1060use this opportunity because it will be rare for folks back in1061Kansas to have the opportunity to ask you about what the future1062of their jobs are and what the future of many businesses who1063rely upon work at Spirit. We have hundreds of small businesses1064who do work for Spirit--I am sorry, who do work for Spirit, but1065also do work for Boeing.1066    And so it is not just one company, it is not just Spirit1067AeroSystems, it is the whole system by which Kansas aerospace1068and aviation, the air capital of the world, operates. When I1069first had a conversation with Boeing officials about the1070potential acquisition of Spirit AeroSystems, one of the things1071I think that was said to encourage me to be supportive, and1072this is me putting my own motives into this sentence, but the1073point was made that--it was indicated that without the1074acquisition of Spirit AeroSystems, the new generation of any1075aircraft developed by Boeing would not be--would not involve1076work in Wichita or work in Kansas. With the acquisition, the1077statement was made, that the work could be more likely occur.1078So you are going to build a new aircraft one of these days, and1079what is the plan for where that work will take place?1080    Mr. Ortberg. Senator, we will. We are an airplane company.1081We will do a new airplane. That is not in the near future given1082the financial performance and the challenges that we have.1083    Obviously we are studying that, and we have to determine1084what the final design of that aircraft would be to determine1085where we are going to manufacture certain components. Let me1086just assure you that Spirit AeroSystems and the work we do in1087Kansas is critically important.1088    We are spending a significant amount of our capital to1089acquire that company, and we are not going to do that and move1090work out of Kansas. The work that we are doing there is going1091to stay there. In fact, I am very hopeful that once we get the1092acquisition closed, we will find opportunities to do actually1093even more work.1094    And again, it is critical that we return--ramp up our1095production because as you know, all those fuselages are built1096by Spirit AeroSystems. So every time we can move to a higher1097production rate, it is going to create jobs and opportunities1098for us in Wichita.1099    Senator Moran. What is the reason that the acquisition of1100Spirit, makes sense, is necessary for the purposes of Boeing1101building a safer aircraft and having a process in place that1102works better than what we saw with the door plugs?1103    Mr. Ortberg. Senator, we really believe that focus--that1104being able to focus the organization and integrate it within1105our commercial production system as one integrated organization1106will help us be more efficient and will help improve the1107overall quality and performance of the fuselages that we are1108getting from Spirit.1109    Now, as you know, it is not just 737 fuselages. We also1110have defense related activity, and I am also excited about the1111opportunities to couple that with our defense business to grow1112the work that we are doing there.1113    There is great people in Wichita. You and I had an1114opportunity to go meet with them. There is a great development1115of the workforce going on for future employees in Wichita. It1116is a great opportunity for us to exploit that workforce and1117build more products in Wichita.1118    Senator Moran. Mr. Ortberg, you surprised me by bringing up1119the topic of defense work. I was going to forego that this1120morning because on every occasion you and I have had that1121conversation because I insisted on it.1122    You have voluntarily brought it up, and I am appreciative1123of that. It causes me to then ask this question. First of all,1124congratulations to Boeing on its successful Air Force contract1125with the F-47 NGAD. What can I expect in regard to work in1126Kansas that would help fulfill that contract?1127    Mr. Ortberg. Senator, I can't answer that right now. I am1128headed to--after this hearing, I am headed to St. Louis to talk1129with my team. There is clear security classifications that I1130need to understand exactly what that answer is. I will get back1131with you on that if you will.1132    Senator Moran. I look forward to having that conversation1133again. Thank you very much.1134    Mr. Ortberg. Thank you.1135    The Chairman. Thank you. Senator Duckworth.11361137              STATEMENT OF HON. TAMMY DUCKWORTH,1138                   U.S. SENATOR FROM ILLINOIS11391140    Senator Duckworth. Thank you, Mr. Chairman. Again, thank1141you, Mr. Ortberg, for a meeting with me a couple weeks ago.1142    On a January earnings call--and this is to touch on some of1143the questions you have been asked, but I think it is important1144to clarify. On a January earnings call, you told investors that1145you wanted to get through the production cap of 38 jets per1146month and ultimately reach a production of 42 per month by some1147time this year.1148    When I asked you about this, and as I have listened to you1149answer some of my colleagues here this morning, I am1150encouraged. When you told me that this was not an expectation1151that you were setting for Wall Street and that your priority1152was to ensure production quality, not a particular increase in1153a production rate.1154    Can you assure this committee that you have not set a 7371155MAX production goal for this year, and that neither Boeing's1156directors nor its other senior management are under pressure to1157reach a particular production rate by the end of this year?1158    Mr. Ortberg. Senator, we have an internal plan. We have to1159have an internal plan to allocate our financial resources. So1160we have an internal plan that has an assumption on the number1161of aircraft, but we have not committed that plan externally.1162Normally airplane manufacturers put out a number of aircraft1163that they will deliver, and then they march to that throughout1164the year. We are not doing that.1165    We are not putting out the--either the financial component1166or the number of aircraft we will produce. I have said what I1167have said here today, which is I do hope that we move from 38--1168move above 38 per month this year, sometime later this year.1169    When that happens is when these KPIs indicate we are ready1170to do that. And obviously we have to have the FAA oversight,1171and the FAA essentially makes the decision as to whether they1172approve our ability to move beyond that rate.1173    Senator Duckworth. In light of that internal plan, can you1174assure this committee that neither you, yourself, nor any other1175Board member or senior manager at Boeing has a financial1176incentive tied to an increase in production rate?1177    Mr. Ortberg. We have--Senator, we have an incentive plan1178that is based on the overall performance of the company. If we1179produce higher airplanes, that will result in higher1180performance. So it is indirectly, but we don't have a specific1181number tied to that. And nor have I communicated a specific1182number to the employees in the company. So, the employees are1183not marching to a particular airplane production rate.1184    Senator Duckworth. But if the production rate increases,1185there is financial incentives for yourself and other Board1186members and senior managers?1187    Mr. Ortberg. Our annual incentive plan has sales, profit,1188the normal financial measures, and obviously the more airplanes1189we deliver, the higher those numbers would be.1190    Senator Duckworth. OK. I want to go to the Delegation Of1191Inspection Authority, a discussion that has already happened1192already today. In October, the DOT's Inspector General found1193FAA's oversight of Boeing production was not effective.1194    The FAA's oversight was so bad that the IG issued six1195separate recommendations to the FAA to fix its process. There1196were many terrible findings in the report, but one of the most1197shocking was that shortly before the door plug blowout,1198individuals within the FAA wanted to delegate airplane1199airworthiness inspection authority back to Boeing.1200    Even worse, these individuals at FAA wanted to do this1201without any criteria by which to assess whether Boeing could be1202trusted to properly carry out these inspections. It isn't just1203unacceptable, it is a total dereliction of duty on the part of1204the FAA.1205    Prior to the 737 MAX crashes and production problems with1206the 787, FAA allowed Boeing to self-inspect their aircraft to1207ensure they conform to the FAA approved type design. However,1208in the wake of the MAX crashes, we learned that Boeing had1209abused its authority. Boeing had knowingly and repeatedly1210produced 737 MAX aircraft with non-functioning angle of attack1211disagree alerts in blatant violation of the plane's approved1212type design.1213    And I believe strongly that FAA must not delegate1214inspection authority back to Boeing until at a minimum FAA1215fixes its own ineffective oversight of Boeing's productions.1216Mr. Ortberg, will you commit to not seeking and not accepting1217delegation of airworthiness inspection authority from the FAA1218until the FAA has implemented all 16 recommendations from the1219October Inspector General report?1220    Mr. Ortberg. Senator Duckworth, what I can commit to is1221that we are working transparently with the FAA, and we will1222support by providing them whatever information they need from1223the Boeing Company to address the IG report. Those1224recommendations were specific to the FAA, so I would have to1225defer to them in terms of their plans relative to implementing1226those recommendations.1227    Senator Duckworth. That is not what I am asking you. It is1228up to the FAA to determine if the delegation is permissible,1229but it will be up to Boeing to decide whether to accept that1230delegation of that responsibility.1231    You are trying to restore Boeing's reputation. I don't see1232how it would help that effort for Boeing to return to1233inspecting its own airplanes for Federal compliance while the1234FAA's oversight process is still broken. That would just look1235like Boeing is taking advantage of a hobbled regulator.1236    Will you commit to not seeking and not accepting re-1237delegation until FAA fixes its oversight by implementing all of1238the IG inspector's recommendations?1239    Mr. Ortberg. Senator, again, we have to work very closely1240with the FAA. They are our regulator. They provide the1241oversight and direction. And so, I can't commit to that. We----1242    Senator Duckworth. Why not? If they came to you right now1243and say, we want to give you inspection authority back today,1244would you accept it?1245    Mr. Ortberg. Only if that made sense relative to--in1246performing the task and the overall safety of the aircraft. We1247would not sacrifice safety of the aircraft by asking for1248delegation.1249    Senator Duckworth. I am asking you to not--to commit to not1250accepting it until the process has been fixed. So you would1251accept it back?1252    Mr. Ortberg. Senator, we--delegation is a very important1253part of our business process and how we interact with the FAA.1254So, we have to continue to go forward with delegation. We are1255committed to make improvements where improvements--needs have1256been identified.1257    Senator Duckworth. But you have a track record of abusing1258that self-inspecting authority. And you have already said that1259you and senior managers and Board members would make more money1260if you can put more aircraft out.1261    I think that it is not appropriate at this time for you to1262accept that delegation of authority should it be offered to you1263by the FAA, before the FAA has met all 16 of the IG's1264recommendations on how to fix the inspection system.1265    The Chairman. Thank you. Senator Blackburn.12661267              STATEMENT OF HON. MARSHA BLACKBURN,1268                  U.S. SENATOR FROM TENNESSEE12691270    Senator Blackburn. Thank you, Mr. Chairman. Mr. Ortberg,1271thank you for being with us today. I think that listening to1272this today, it made me think of Secretary Duffy's remarks that1273it was time for you all to have some tough love.1274    And I agree with that, and I appreciate the conversation1275around how dedicated you are to addressing a comprehensive1276safety plan. That is important. And I want to talk with you1277about what you are doing to improve your company's culture and1278that work culture.1279    This is a very important part of any business. It appears1280that your company's work culture has been frayed. So very1281quickly, what are you personally doing to change this work1282culture at Boeing?1283    Mr. Ortberg. Senator, the first thing I am doing is leading1284by example and getting our people closer to the people doing1285the design and the production of the airplane. So, tomorrow I1286will be in St. Louis with the people that are manufacturing1287military airplanes on the floor.1288    Next week I will be in Everett, Washington with our wide1289body team talking to union members about the difficulties that1290they are having in manufacturing the aircraft and what we need1291to do to help them be successful.1292    So that is the first step in changing the culture, is1293getting people to recognize that leadership's role is to help1294the organization be successful, not to make themselves1295successful. So, we have got a lot of activity underway to do1296that. We have made----1297    Senator Blackburn. How are your employees responding to1298that?1299    Mr. Ortberg. Very positively, very positively. We just did1300an all employee survey, which is a means that I am going to use1301to measure the culture change, and we have that survey1302structured so I can look at any place in the organization----1303    Senator Blackburn. OK. Then let me do this. I want to ask1304you about whistleblowers.1305    Mr. Ortberg. OK.1306    Senator Blackburn. Because we have heard from some of the1307Boeing whistleblowers. And I know you are familiar with their1308names, but you don't have a good record of protecting and1309supporting whistleblowers.1310    And some of the stories around these whistleblowers has1311been very upsetting to people like me who have worked through1312my public service to protect whistleblowers. I think that they1313are essential. So talk to me about what you are doing to change1314that policy to support and not to ostracize or isolate1315whistleblowers?1316    Mr. Ortberg. Senator, the company has an anti-retaliation1317policy. It is unacceptable for anybody to retaliate against1318whether it is a whistleblower or anybody bringing up a quality1319issue. And I have made that perfectly clear in all of our--all1320employee meetings, all employee sessions.1321    In fact, I have told employees if they have an issue, send1322me a note. I will address it. And some have sent me a note. I1323have met with the whistleblower--one of the whistleblowers.1324    My door is open to discuss with any of the whistleblowers1325what they are seeing and make sure that there is no retaliation1326in the organization. But this is a part of the culture change1327within the company, is we need------1328    Senator Blackburn. Not to interrupt, but I want to ask you,1329are you stepping back to some of those whistleblowers who have1330experienced a less than positive relationship? Are you righting1331those wrongs?1332    Mr. Ortberg. Senator, in many cases, the whistleblowers1333that I am aware of, those activities happened a long time ago.1334    Senator Blackburn. Know that.1335    Mr. Ortberg. Some of those are still with the company and I1336have met with one of the whistleblowers with the company. So, I1337know that in the past all the retaliation claims have been1338thoroughly investigated. And if there is retaliation, there has1339been corrective action taken.1340    Senator Blackburn. OK. Let me move on, COMAC. I think we1341are all concerned about COMAC and the Chinese Communist Party.1342And the CEO of Ryanair recently said they were opening--opened1343to buying planes from COMAC.1344    We are all concerned about competition that would come from1345China and the Chinese Communist Party. So what steps are you1346taking to innovate and to make certain that you are competing1347and outcompeting our foreign competitors?1348    Mr. Ortberg. Senator, COMAC is a competitor. We also have a1349much bigger competitor in Europe that we compete with on a1350regular basis in all of our markets. We have to stay1351competitive.1352    We have to invest in the future of our company. We are1353investing in new versions of the MAX aircraft. We are investing1354in the new largest wide body airplane, dual engine airplane in1355the history with our 777X program.1356    And all those airplane investments are about staying ahead1357of the competition and making sure that we can compete in a1358global market.1359    Senator Blackburn. Got it. Thank you.1360    Senator Moran. Senator Lujan is recognized.13611362               STATEMENT OF HON. BEN RAY LUJAN,1363                  U.S. SENATOR FROM NEW MEXICO13641365    Senator Lujan. Thank you, Mr. Chairman. Thank you for this1366hearing as well. Mr. Ortberg, thank you for being here today. I1367am going to follow up with something that Senator Blackburn1368asked. What specific steps has Boeing taken to strengthen1369whistleblower protections that ensure employees feel safe1370reporting potential safety issues?1371    Mr. Ortberg. So, we have a speak up system, which is an1372anonymous ability to speak up about something that is going on.1373    We have a Chief Compliance Officer who is independent from1374the organization, reviews those speak ups, and I have a monthly1375meeting with that Chief Compliance Officer to make sure that1376we--if people are bringing things up anonymously, that their1377anonymity is retained.1378    Look, our policy, as I said, we have a clear anti-1379retaliation policy and if we see any retaliation, then we1380address that immediately with disciplinary action up to1381including dismissal.1382    Senator Lujan. Appreciate that. Representatives from1383Boeing's Machinist Union, SPEEA, the Society of Professional1384Engineering Employees in Aerospace, have emphasized the1385importance of employees feeling empowered to speak openly about1386those safety concerns. Mr. Ortberg, will you commit to having1387union representatives directly involved in Boeing safety1388discussions and decisionmaking processes going forward?1389    Mr. Ortberg. Yes, Senator, we have made actually some new1390changes in that regard. As a part of our recent IAM1391negotiation, we set up to where the IAM, the union actually has1392an annual meeting with our safety committee of our Board so1393that they can actually go completely around the management and1394talk directly to our Board of Directors about any safety issues1395that they see.1396    I also have a regular meeting with the union leadership on1397all sorts of issues, including any safety related issues. And1398of course, this speak up system I have talked about is1399certainly open to all of our union members, as well as non-1400union employees.1401    Senator Lujan. So it sounds like that is something you will1402commit to, and you already have.1403    Mr. Ortberg. Yes, yes. We are doing that, and I certainly1404want to have an environment where if there is a safety--I don't1405care who it is in the organization, if there is a safety1406related issue, that that is communicated and acted upon1407immediately. And that is the environment we are trying to make.1408    Senator Lujan. I appreciate that. Later today, President1409Trump plans to announce reciprocal tariffs against a number of1410countries. Few details are known beyond this. If the Trump1411Administration moves forward with proposed tariffs, what impact1412would this have on Boeing's operations, particularly your1413suppliers and workforce in states like New Mexico?1414    Mr. Ortberg. Well, Senator, a little bit of the answer to1415that is it depends on what the tariffs are. And I obviously1416don't know that, so I will be watching this afternoon as that1417is announced. That is important to us.1418    But I will say that 80 percent of the airplanes we deliver,1419the commercial airplanes we deliver, are outside of the United1420States. So free trade is very important to us. And 80 percent1421of the content of those airplanes, it comes out of the United1422States.1423    So we really are the ideal kind of an export company where1424we are outselling internationally, it is creating U.S. jobs,1425long term, high value U.S. jobs. So it is important that we1426continue to have access to that market and that we don't get in1427a situation where certain markets become closed to us.1428    Senator Lujan. Appreciate that. Where does Boeing see the1429most significant growth opportunities over the next decade? And1430how will Boeing ensure that its safety and quality management1431practices keep pace with your ambitions?1432    Mr. Ortberg. The--we have nearly half a trillion dollars in1433current backlog. That is airplanes that have been ordered. Our1434biggest opportunity in the next 5 years is perform--is to1435deliver high quality. Get our safety quality plan in place.1436    We do have a couple new variants that as I talked about,1437that we need to get through certification and into the market.1438But I am confident that the Boeing Company can thrive if we get1439our safety and quality plan done right, and we will.1440    Senator Lujan. I appreciate that, sir. I am not going to1441ask you who named the F-47. I will leave that to someone else.1442    Mr. Ortberg. OK.1443    Senator Lujan. With that, Mr. Chairman, I yield back.1444    Senator Moran. Thank you, Senator Lujan. We will begin a1445second round of questions, and I recognize the Ranking Member,1446Senator Cantwell.1447    Senator Cantwell. Thank you so much. That is a trivia1448question if we are--oh, he was a test pilot from your state. Is1449that what you are saying? OK.1450    [Laughter.]1451    Senator Cantwell. OK. Well, we want to return to, ``if it1452ain't Boeing, we ain't going''. That is where we want to go.1453That is where we want to go. This question is on ODA and1454compliance. I just want to point out that in the 2020 Act that1455we passed in the aftermath of the MAX crashes, we mandated that1456you cannot delegate certification tasks related to critical1457functions.1458    So we basically have said you can't delegate. And so, the--1459I understand my colleague's question, but and it is an1460important one, but in reality, we decided as a committee, we1461are not allowing the delegation of critical functions anymore1462because the MCAS system was a critical change and it was1463something the FAA missed, in addition to the company mentioning1464it missing it.1465    The FAA didn't understand. And we don't think that we--we1466believe in redundancy in a lot of different areas and1467redundancy in this case of the FAA doing its job and1468understanding what is being proposed. So those critical1469features can't be delegated--can't be delegated. And so, the1470FAA has to do its job.1471    And so, I think in the next--the next time we get--well, we1472have a nominee now for an FAA Administrator. These will be very1473relevant questions for them on their strategy. But we will be1474asking them how they are going to have the workforce, the1475technological expertise, and all of that to stay at pace and1476then to make an ODA system work, but we are not allowing them1477to take critical features, critical safety features, we are not1478allowing them to delegate that.1479    So, anyway, that will be an interesting point. Now, I do1480think the question I have on the compliance administrator, you1481guys have a Boeing problem solving method. I know that the1482person who was in charge of that has just been recently either1483laid off or changed. What are you doing to make sure that that1484position--why the change? What are you doing to make sure that1485who you have in this job is standing up for these root cause1486analysis issues that you mentioned?1487    Mr. Ortberg. Senator, we will go through an elaborate1488interview process and ensure that we select the best talent to1489do that job. That is critical--a critical component of that job1490is to be able to provide that overall independence. And we1491recognize that, and we will fill it with the appropriate person1492when--after we get through the interview process.1493    Senator Cantwell. And do you think that you are in1494alignment with SPEEA and machinists on what the feedback1495process is in the company? I asked the former FAA Administrator1496whether he believed that the FAA should have oversight into1497those issues being brought up. So you have mentioned speak up a1498couple of times.1499    Mr. Ortberg. Yes----1500    Senator Cantwell. And I am just not familiar where you are1501in your conversations with SPEEA and machinists. Whether they1502are satisfied--what do we have to do to make sure that they1503feel like they--that they have a voice without intimidation?1504    Mr. Ortberg. Yes. I think we are making progress, Senator,1505in that area. We do survey to make sure we understand what is1506the current situation. We have seen three times the number of1507speak ups in the last year over the prior year. So that gives1508you an indication that people are feeling comfortable to use1509the system.1510    We still have culture work to do. I think that there is--1511there probably are people in the organization who say I am not1512sure I feel comfortable about utilizing the system, and we1513continue to work on that to make sure that everybody feels1514comfortable utilizing it. But we are seeing improvements. We1515also have improved the system, so it is easier to use, and I1516think that is helping as well.1517    Senator Cantwell. Well, I think--going back to the expert1518panel report, they were saying that ``the processes on SMS are1519not,'' I am quoting now, ``structured in a way that ensure all1520employees understand their role. And the procedures and1521training are complex and in a constant state of change,1522creating employee confusion especially among different work1523sites and employee groups.''1524    So I think this--getting this employee input, and then what1525would you say about the FAA having some insight into that?1526Listen, this committee is--you know, we have--we were having a1527very big discussion with both FAA and NTSB on trend reports.1528The NTSB is identifying a lot of trends, and we are saying,1529well, why FAA aren't you paying attention to the trend reports?1530In fact, we also mandated a requirement that they publish a1531trend report every year so that we can see what the NTSB thinks1532are those trend reports.1533    So, are you committed to the FAA having some insight into1534that process, whatever it becomes, where the machinists and1535SPEEA members can speak up and the FAA can have some insight1536into that?1537    Mr. Ortberg. Yes, Senator. We are absolutely committed to1538that. And I have talked to the FAA. I have talked to Chairman1539Homendy from the NTSB, to make sure they know that we will be1540transparent and provide them the information to allow them to1541do that. I think Chair Homendy has publicly said she believes1542the next accident is lying in the data and that we need to do a1543better job of analyzing the data.1544    We have stepped up our in-service data collection process1545for our airplanes in service so we can do just that. Start1546doing more data analytics on what we are seeing, identify1547trends before they become incidences. And I think what she says1548is absolutely right, and we need to be transparent, the1549industry needs to be transparent on this data.1550    Senator Cantwell. Thank you for that. I see my time is1551expired to go to the next round, but I just--that is a change.1552What you just said is a big change. Is it not? The in-service--1553the in-service data analytics.1554    Mr. Ortberg. Yes. Senator, it is a massive change that we1555have been making in the company. We have talked a lot about1556manufacturing changes, how we build the airplane, how we design1557the airplane, but it is also super important that we pay1558attention to how the airplane is being operated, how it is1559being maintained.1560    And we have the ability to collect a lot of that1561information from our customers and look for trends, use1562artificial intelligence algorithms to help us sort through that1563data, and find trends, and then go address those trends. And1564those trends could result in changes to the airplane or changes1565to the training or changes to the maintenance processes.1566Whatever the corrective action, it is important that we do1567that.1568    Senator Cantwell. Well, I actually believe that you could1569do a better job at analyzing that information faster and in1570getting that to your engineers that give them data to think1571about things.1572    And so, I think that is an important--that is a very1573important change. And I also--just as my colleague was asking1574about trade, I am not going to ask you about that, but I would1575just point out that the world demand for airplanes is 40,0001576planes over, I think, the next 10 years. So the race is on.1577    Mr. Ortberg. Yes.1578    Senator Cantwell. So I really appreciate you getting the1579safety right. Thank you.1580    Senator Moran. Senator Markey.15811582               STATEMENT OF HON. EDWARD MARKEY,1583                U.S. SENATOR FROM MASSACHUSETTS15841585    Senator Markey. Thank you, Mr. Chairman, very much. I first1586want to offer my deepest condolences to the families of the1587victims of the Boeing crashes who are here today. Thank you for1588being here, and we are going to remember your family members1589every day that we are working on these issues.1590    Your courage in fighting for a safer aviation system is1591inspiring and it is going to make our committee accountable to1592you to make sure that we do the work that you want to see put1593in place for every family that flies in our country and around1594the globe. So I am very grateful for your incredible work on1595these issues and thank you for being here.1596    Mr. Ortberg, thank you for being here today and your work1597over the past several months to improve Boeing's safety culture1598and improve lines of communication with workers. I want to1599discuss that safety culture and the importance of labor1600representation in key engineering decisions.1601    So, I want to get straight to the point. Mr. Ortberg, does1602Boeing currently have a single representative of workers on its1603Board of Directors?1604    Mr. Ortberg. No, sir.1605    Senator Markey. Do you agree that it is a problem that the1606engineers and aerospace professionals responsible for designing1607and manufacturing the planes are excluded from Boardroom1608decisionmaking?1609    Mr. Ortberg. Senator, as I mentioned, we have a process1610where we do have the union membership come and meet with our1611aerospace safety committee of our Board of Directors on an1612annual basis to discuss with the Board any issues that they1613see, whether it is safety related or any other related issues.1614They also have access to me and the management of the1615organization.1616    Senator Markey. Yes. Well, again, I think that all of the1617communication should be much more frequent and direct. And that1618is why the Board of Directors is such a focal point because1619obviously you and the other executives have to deal with the1620Board of Directors on an ongoing basis.1621    In Boeing's 2025 proxy statement, it identifies seven1622directors with expertise in safety. So let's take a closer look1623at those directors with suppose safety expertise. One Board1624member with ``safety expertise'' was up until her retirement1625yesterday the CEO of Duke Energy and was previously a senior1626partner at Arthur Anderson, the accounting firm indicted1627following the Enron scandal.1628    And another Board member with ``safety expertise'' is the1629CEO of a biopharma company who previously served on the Board1630of Directors of Norfolk Southern and spent nearly two decades1631at Morgan Stanley. Mr. Ortberg, in your view, do those Board1632members have ``safety expertise''?1633    Mr. Ortberg. Senator, those Board members provide a very,1634very good input on safety. Now, the safety is not aerospace1635safety, I grant it, but for us to be able to learn on how1636pharma treats safety, it is very interesting to have Board1637members who can provide different perspectives on how they1638treat safety in their different industries.1639    Clearly, the energy industry, how they treat safety is very1640important to their business. And so, we view having a diverse1641set of inputs into that. It helps us think through and1642benchmark what are other people doing in this area to see if1643there is better ways for us to do it.1644    Senator Markey. In my opinion, using that as the criteria,1645Duke Energy or biopharma, makes every person in America a1646safety expert. They could bring the perspective of their1647industry into your Boardroom. And I just think that that is1648absolutely not accurate. That there has to be a particular1649expertise about the aerodynamics that are at the heart of your1650industry, and that is a very, very specialized kind of safety1651knowledge.1652    So there is no way that these Board members should qualify1653as safety experts any more than any other industry should. And1654I recognize that Boeing has added a couple of individuals with1655real expertise and experience flying planes and overseeing1656important organizations over the past few years, but Boeing's1657Board still includes numerous financial professionals and no1658representatives from its workforce.1659    You know, financial engineering and real engineering, never1660the twain shall meet. Just two different concepts altogether.1661So let me address this from a different perspective. The FAA1662has delegated authority to Boeing to conduct certain safety and1663compliance oversight on its design and manufacturing processes.1664In return for that delegation, the public should be confident1665that Boeing is prioritizing safety at all levels of the1666organization.1667    But without representation of workers on its Board of1668Directors, Boeing is still flying blind because you don't have1669the workers there, on the Board, giving the insights that the1670Board should hear about whatever safety defects are potentially1671going to rise. And again, the Board should not be shielded from1672hearing this directly.1673    So, Mr. Ortberg, do you agree that companies like Boeing1674that have been delegated, you have been delegated the oversight1675authority by the FAA--you are given essentially a take home1676exam. That you shouldn't include representatives of the workers1677on the Board of Directors to make sure that you are hearing1678their voices on an ongoing basis?1679    Mr. Ortberg. Senator, at every Board meeting we have an1680aerospace safety committee meeting that goes through all safety1681related issues. That input comes from anywhere in the company,1682including our labor workforce. So I do believe that the message1683is coming through. I think the message is analyzed, and the1684Board takes it very, very seriously.1685    Senator Markey. Well, from my perspective, that is not1686enough. That the Board members themselves should be hearing1687from a worker with expertise in safety issues so they are1688hearing it directly in every Board meeting what the concern is1689that workers may have. And I think it is a fair trade to be1690honest with you.1691    Boeing receives some authority to self-regulate while1692creating structures on its Board to ensure that it is1693prioritizing safety and not profits. And that is why today I am1694introducing the Safety Stocks at the Top Act, which will1695require major aerospace manufacturers that have been delegated1696regulatory oversight from the FAA to include multiple labor1697representatives and safety experts on their Board of Directors.1698    Safety must start at the top, and the top is Boeing's Board1699of Directors. Safety must be in the room, expertise must be in1700the room, and I am looking forward to working with my1701colleagues to ensure that that kind of representation is on the1702Board. And I thank you, Mr. Chairman. I thank you, Mr.1703Chairman, for your indulgence.1704    Senator Moran. Senator Markey, thank you. Senator Rosen.17051706                STATEMENT OF HON. JACKY ROSEN,1707                    U.S. SENATOR FROM NEVADA17081709    Senator Rosen. Thank you. I really appreciate that. And I1710want to thank the Chair and Ranking Member for holding this1711really important hearing today. And last year, this committee1712held a hearing to discuss the findings and recommendations1713issued by the Organization Designation Authorization, ODA--the1714expert review panel.1715    In that hearing, I asked a question about how the ODA1716report found that input from Boeing's pilots were neither1717consistently nor directly delivered to the highest levels of1718decisionmakers in the organization. I believe it is essential1719to make sure that pilots have a seat, not just in the cockpit,1720but at the table so that we ensure their expertise guides and1721enhances airline safety.1722    It is why I am glad to see that in the summary of its new1723safety and quality plan, Boeing has committed to elevating1724human factors and strengthening the role of pilots in the1725design process. So, Mr. Ortberg, how has the role of pilots in1726the Boeing design process changed since the ODA review?1727    What are you doing differently now, and what will Boeing1728ensure, and how will you, excuse me, ensure that there is1729meaningful and consistent input from pilots integrated and1730prioritized into the design process?1731    Mr. Ortberg. Senator, first of all, I agree with the1732premise of your discussion. We really do need to have very1733strong input from the pilots in both the design and the1734operation of the aircraft. And we have changed our1735organization.1736    We have added a human factors chief engineer, which is a1737pilot who spends time understanding the interaction between the1738pilot and the aircraft in all the design aspects of the1739airplane but also the operational aspects, looking at our1740manuals, looking at our fault trees to make sure that from a1741pilot perspective how will that be--how will that interaction1742with the aircraft happen. And I think this is an area that will1743help improve our overall safety going forward.1744    Senator Rosen. Thank you. I do agree because at the end of1745the day, the pilot, that crew--that emergency might happen. It1746happens like this, and there has to be a way that that1747integration works. So, thank you.1748    I want to talk also a little bit about retaliation and its1749impact on safety because the ODA expert panel report we1750reviewed last year found instances where Boeing supervisors1751worked on annual assessments and self-audits or investigative1752processes which could present conflicts of interest. It could1753erode independence or even compromise Boeing's commitment to a1754non-retaliatory and impartial environment for its workforce.1755    Throughout the report, those folks interviewed gave1756examples of the consequences of raising concerns about1757potential interference and retaliation for managers and1758supervisors. It is not acceptable. Not acceptable.1759    So again, do you have confidence that Boeing is now taking1760the necessary steps to implement systems that provide workers1761with multiple channels for raising concerns? Because this is1762really important that they are addressed without fear of1763retaliation.1764    As well as creating a culture of encouraging and1765incentivizing safety at every level. And it is just so1766important that each piece of the puzzle, if somebody has a1767concern, that they are able to raise it without fear of1768retaliation. I can't stress this enough because as you know,1769lives are on the line--many people sit in your planes.1770    Mr. Ortberg. Yes, Senator. First of all, I agree with what1771you said. I think it is absolutely critical that we have an1772environment--we did take the feedback from the report, and we1773have changed our organization structure to address that1774specific issue. So we provided more independence for the ODAs1775so they don't have a situation where someone's providing a1776performance review that could provide--apply pressure to them.1777    So I think we have sincerely addressed the concerns that1778were outlined in the report. And as I said before, we have1779added an ombudsman as well to the ODA and that gives them1780someone to go talk to if they see something or if they are1781concerned about bringing up an issue.1782    And we think that has been having a good effect as well.1783So, I believe we are addressing those issues, but we will1784continue to monitor it. And if we have to make more changes, we1785will do that because I absolutely agree with you. People need1786to be free to make the right decisions without any kind of1787overpressure from management.1788    Senator Rosen. Thank you. I have one--I have just one1789question. It is very brief. If you could be brief about it. You1790talk about your rebuilding your human factors expertise. Not1791everything can be done by AI and artificial intelligence, or1792machines and all of that. We still need to be engaged. So how1793is the process of rebuilding this capability, the human1794factors, going at Boeing?1795    Mr. Ortberg. So, we just stood up this organization, and it1796is an organization that is filled with pilots. We have also1797developed what we call ECAPs, which are actually cockpits that1798they can go fly. They fly designs.1799    We have potential design implementation. They go fly those1800to look and understand what the pilot implication is early in1801the design phase so that they can drive human factors related1802requirements into the design and we don't have to deal with it1803later on after the design is done.1804    So I do think we are making really good changes to get more1805of that upfront in the design development process. And we are1806filling this with world class people who are very expert at1807flying aircraft.1808    Senator Rosen. Yes. Thank you. I yield back.1809    Senator Moran. Thank you, Senator. Senator Blunt Rochester.18101811            STATEMENT OF HON. LISA BLUNT ROCHESTER,1812                   U.S. SENATOR FROM DELAWARE18131814    Senator Blunt Rochester. Thank you, Mr. Chairman. And1815really appreciate the convening of this hearing. On behalf of1816the families who are before us, as a Senator who represents1817individuals who perished in the most recent flight in1818Washington, D.C., this hearing about aviation safety is1819critical to all Americans and in our ability to have confidence1820in flying.1821    And so, Mr. Ortberg, thank you so much for taking the time1822to speak with me prior to the hearing as well. I want to focus1823my questions on workforce. And I served in the state of1824Delaware as Head of State Personnel, and so, I understand the1825challenges and the importance of hiring, firing, and retention1826culture, as you have talked about. The fact that we have an1827aging population in this country and that really impacts1828retirements and our workforce planning and succession planning.1829    Boeing's workforce, its engineers, its machinists, safety1830inspectors are the backbone of the company's ability to1831manufacture safe and reliable aircraft. However, recent safety1832concerns and production delays, coupled with over 4,000 layoffs1833in November and December 2024, suggest that Boeing's workforce1834may not be adequately supported, trained, or staffed to meet1835the company's own quality and safety commitments. And from my1836understanding, if I were to order an airplane today, it could1837take more than a decade for it to be delivered, which suggests1838major challenges in the production pipeline.1839    Challenges that might stem from workforce shortages or1840training gaps. Can you talk to me a little bit about workforce1841planning? Describe how current or projected workforce shortages1842are affecting the company's ability to safe--to maintain its1843safety and production standards.1844    Mr. Ortberg. Senator, one great thing we have is that our1845mission is awesome, and people want to work for the Boeing1846Company. So we really don't have a challenge attracting people1847who want to work for the Boeing Company. I think where our1848challenge is more making sure that we can train them.1849    You know, the kids of today are more digital than1850mechanical. And so, that means a different set of training1851curriculum for when we bring them into the company. Our1852retention is quite high. For all the challenges we have had,1853that has been--that is actually good. So, you know, my focus1854right now on our employees is engagement, better communication,1855and you know, helping train them to do their jobs more1856effectively.1857    And I think if we continue to do that, our mission will1858remain awesome. We will be able to recruit who we need to, to1859make the company successful.1860    Senator Blunt Rochester. So just to be clear, there are no1861areas where you are seeing workforce shortages or challenges?1862As a State Personnel Director, we were challenged with, again,1863people leaving, that talent, that brain drain. You don't see1864that in any area, particularly in safety positions?1865    Mr. Ortberg. You know, I saw that much more five or so1866years ago than what I see today. I mean, I am sure there is a1867pocket within the company where we need some additional1868resources, but in the main, I don't see any major resource gaps1869for us to execute our plans.1870    Senator Blunt Rochester. It would be helpful as a follow1871up, if you could go back and just share with us if there are1872any particular areas, especially since I am also on the1873Committee that works on labor. And so, looking at education and1874labor, and making sure that there is a real pipeline, is really1875important to us.1876    The FAA and the NTSB rely on Boeing to maintain strict,1877internal safety reviews. However, every company has employees1878that make difficult workforce decisions such as retiring and1879seeking other employment.1880    So again, just ensuring that your new hires are even1881trained. Can you talk a little bit about how you are adequately1882training new hires to prepare them to uphold your safety1883commitments?1884    Mr. Ortberg. Senator, this has been a big part of our1885safety and quality plan with the FAA is additional training. We1886have added additional 550 hours of curriculum to our training1887because--we found some gaps in what we were training. On1888average, we have--increased the training program by about 201889hours, from say around 120 hours to 140 hours. So we are1890increasing the training.1891    We are also adding competency evaluations for our employees1892before they get onto an airplane and start doing work to make1893sure they are competent in the work that they have to do. If1894they aren't--if they don't pass the competency, they go back1895through additional training to make sure that they are trained1896to do the actual work that they are doing. We have also kind of1897changed how we are training.1898    We found that in a lot of cases we were training people in1899a lab and that didn't replicate the actual environment that1900they--once they go out and build the airplane. So we have1901brought actual airplane parts, tried to replicate much more of1902the actual work they are going to eventually do, in their1903training program.1904    Senator Blunt Rochester. I would just close with, as I1905shared with you, we have some of my constituents that work at1906Ridley Park. They take great pride in their work. They have1907been fortunate to have good leadership, union leadership as1908well that have advocated for fair wages and safe working1909conditions.1910    And I would love to follow up on your relationship with1911labor unions, and particularly with increased automation and1912global competition. Just the concrete steps that you have taken1913to protect and sustain union jobs for the long term.1914    Senator Schmitt. Thank you, Senator. Senator Young.19151916                 STATEMENT OF HON. TODD YOUNG,1917                   U.S. SENATOR FROM INDIANA19181919    Senator Young. Thank you, Mr. Chairman. Mr. Ortberg, great1920to have you here today. I appreciated the phone call we had1921just days ago, and want to learn more, in coming days, weeks,1922and months as it relates to your new strategy for improvement.1923But you have done a good job answering questions today.1924    There is, as we discussed, there has been a public loss of1925trust due to systemic issues that have put lives at risk at1926your company. I get the sense from our conversation and also1927your answers to questions today that you realize this, you are1928committed to changing this, and we are here to the extent we1929can be constructive in that effort, either critically or1930supportively in making sure you succeed.1931    Relatedly, AI automation and data analytics, I keep hearing1932have the potential to revolutionize production not just in the1933aerospace industry but also seemingly every other facet of life1934and certainly manufacturing.1935    I would like to understand what concrete steps Boeing is1936taking to ensure that these tools, of the digital economy,1937aren't just in place, but are going to make a measurable1938difference in preventing defects, predicting failures,1939restoring public confidence in your aircraft? Has Boeing1940integrated AI or automation to detect defects before planes are1941delivered to customers? And if so, how effective has it been so1942far?1943    Mr. Ortberg. Senator, we use generally large language1944models. We are using those large language models right now to1945enhance our assembly instructions and our documentation, to1946make sure that it is clear, it is more concise, and that will1947help with the overall safety and quality of the aircraft.1948    I know we are doing data analytics as well using AI1949algorithms. I am not an expert on that, so I can't give you too1950much details, but certainly can look into that and get back1951with you. But I assure you our team is looking at how to1952utilize AI to do the data analytics to find trends, and predict1953trends, and improve the overall performance of the aircraft.1954    Senator Young. That is great. I know it will be important1955to your customers, to the broader public, and to your employees1956moving forward. You have 8,000 direct and indirect jobs that1957your company supports just in the state of Indiana alone.1958    I want to thank you for that. Almost a, you know, half1959billion dollars of economic impact on our state. In light of1960these new tools like AI and automation, can you speak to steps1961that Boeing is taking to ensure that the employees are1962adequately trained and prepared for this future of aerospace,1963which we all anticipate bringing more safety to the operations1964and things we manufacture as well?1965    Mr. Ortberg. Yes, so within our engineering organization in1966the company sits expertise in AI, and we have our own internal1967AI algorithms. So we are not using external algorithms and1968data. And we have a training program where we train new1969engineers on how to utilize--how to utilize these AI tools in1970their everyday tasks.1971    So, you know, it is almost like how do you design a circuit1972card? You have to have training--and people have these tools,1973and they are available to our engineers, and they utilize them1974on a day in, day out basis.1975    Senator Young. If there are things that we can be doing1976here at the Federal level of Government to change existing1977workforce training programs, to better prepare even our young1978people for these jobs of tomorrow, which increasingly seem here1979today, so that the changes in the technology and therefore the1980workforce skill needs are changing so quickly.1981    But we want to keep up the best we can, so please don't1982hesitate to work with members of this committee on optimizing1983those programs or replacing them if necessary. How is Boeing1984leveraging data analytics to track patterns and maintenance1985issues to prevent future failures? Is that something you could1986speak to?1987    Mr. Ortberg. Yes. We have a program we call our cost1988program, which is a program with our airline customers where1989they report data to us. And we have a large base of airline1990customers. Not everyone reports, but most of them do. And that1991allows us to analyze events, look for trends, follow up on1992safety issues with the airlines.1993    It has been very effective on--I mentioned earlier, we are1994stepping up our efforts in those analytics to look for more1995trends, using AI tools to sort through the data to see if there1996are trends or things that we can't see with the human eye, and1997ensure that we are identifying those before they turn into an1998incident.1999    Senator Young. Thank you, sir. Chairman.20002001                STATEMENT OF HON. ERIC SCHMITT,2002                   U.S. SENATOR FROM MISSOURI20032004    Senator Schmitt. Thank you. I will now call on myself.2005Thank you, Senator. Good to see you, Mr. Ortberg and really2006enjoyed our visit. And we had certainly something to celebrate2007when we were able to talk. We can talk a little bit more about2008that, but I did--one of the things I found fascinating about2009our conversation as it relates to this hearing probably more2010specifically is the culture shift, right.2011    That the transition from different divisions and maybe some2012different silos to sort of more of a team oriented spirit.2013Could you just talk a little bit more about what that looks2014like practically, as you guys have made some internal decisions2015about that?2016    Mr. Ortberg. Yes. So culture is very important, and I think2017in some cases we are too isolated. Our people stay in their2018swim lanes or their organizational lanes, and everything we do2019is team-based in the Boeing Company, large teams. And so, to be2020most effective, we need people working across the2021organizational boundaries and feeling comfortable to do that.2022    And so, we are off on a big effort to change the culture of2023the company. And that starts with values and behaviors, and how2024we reward people, and how we evaluate people, and how we select2025people. And we are implementing those. This is going to be a2026big year for us in the overall culture change.2027    I will tell you one thing that excites me is that the2028employees of the company are the ones who really want to see2029the company culture change. They recognize that we need to be2030better in how we work together.2031    So I think we have got the case for change really nailed.2032We are just going to have to go do the hard work of making sure2033we walk the talk and get the right people in the right2034positions.2035    Senator Schmitt. And you guys work with--obviously you work2036with a lot of vendors and suppliers across the country. So, in2037light of this hearing, what are some of the things that you are2038doing to ensure the highest quality, and safety, and all of2039those sorts of things?2040    Mr. Ortberg. Yes. So as a part of our safety and quality2041plan, that also includes our supply chain. And one of the major2042efforts is reducing the number of defects we are bringing into2043our factory from our supply chain and reducing the number of2044notice of escapes that we get.2045    This is where a vendor would call us up and say, hey, I2046sent you something, but now I found something wrong with it. It2047escaped their factory. And major activities to reduce those.2048One is stronger first article inspection and doing first2049article inspection when we actually move a product even within2050a company. So if it moves from one location to another, one2051factory to another, reevaluating the first article to make sure2052that something didn't happen in that transition.2053    We have 1,000 activities underway, or 1,000 vendor2054engagements underway right now, to improve the overall2055performance and safety, and the quality of the deliveries from2056our supply chain. And we are seeing better performance. I2057mentioned earlier the fuselages that we get from Spirit2058AeroSystems.2059    We have seen a 56 percent reduction in the number of2060defects that we are having to do repair on, in our factory2061facilities. And we got more work to do there, but I do think2062getting to root cause and getting these defects out of our2063supply chain is just as important as getting them out of our2064Boeing production system.2065    Senator Schmitt. Well, switching gears just a little bit to2066something that obviously hits home. I also serve on the Armed2067Services committee, and you know, the next generation air2068defense or dominance, the program was--you know, whether or not2069the Administration was going to move forward, was paused in the2070previous Administration, and then the selection of what that2071next-gen fighter was going to look like.2072    We got some very--we got some clarity about 10 days ago,2073and I just, I couldn't be more thrilled. You know, of course,2074St. Louis is the sort of the hub of the operations on the2075military side and we are building the F-47.2076    There are thousands of jobs. I know everyone is very2077excited about that, not just for our country, but in Missouri.2078Could you just talk a little bit about that program and how you2079see that playing into this architecture of our national2080defense?2081    Mr. Ortberg. Well, first of all, this contract award was2082very, very important to the Boeing Company. In fact, I am going2083to St. Louis tonight to go congratulate the team on this very2084large win. And we are honored to be given this opportunity. Our2085fighter business in St. Louis is historically legacy fighters,2086the F-15, F-18.2087    As you know, the F-18 is reaching toward the end of its2088life. So this is an important program for us to continue our2089fighter franchise in St. Louis. And we will, you know, create2090jobs and opportunities for a long time coming. So we are very2091pleased to have that.2092    Senator Schmitt. It is generational. We are happy about2093that as well and look forward to working with you on that and2094so many other issues. Mr. Chairman.2095    The Chairman. Thank you, Senator Schmitt. Mr. Ortberg, the2096FAA has played an integral role in solidifying a safe approach2097to production adjustments at Boeing, following the Alaska2098Airlines Flight 1282 incident.2099    As Boeing continues to monitor its KPIs and begins to2100increase production as appropriate, it will likely grow more2101autonomous in its internal oversight. As Boeing regains2102autonomy and eventually increases production caps, how will2103Boeing guarantee safety without enhanced FAA oversight?2104    Mr. Ortberg. Senator, I am not aware of increased autonomy2105that will come as we increase production rates. We are going to2106continue to provide transparency to the FAA on all the key2107performance indicators. We will go through a series of2108production increases. So the first one cap is at 38, but we2109will go through the same process for every subsequent rate2110increase. And if the KPIs aren't showing that we are meeting2111the performance, then we won't move forward with a rate2112increase.2113    So, I think this is a good practice. I think what we have2114in place--it is data-driven. It is not subjective. We have2115agreed with our regulator on what things we need to be2116measuring. If we find we need to adjust that, we will, do that.2117But I think getting to a data-driven process I think helps them2118also have insight and prioritize where they should focus.2119    If our key indicators in one area are not good, that allows2120them to say, OK, we need to put more oversight in that2121particular area because there is instability in the production2122system. So, again, I think the--I think the system we have in2123place, the plan we have in place will be effective, not just in2124the near term but for the long term.2125    The Chairman. Since you have become the Chief Executive2126Officer at Boeing, there have been significant changes on the2127Board and in the leadership. As the leadership changes, this2128affects the culture at Boeing. What personnel changes have been2129made at Boeing and how have these impacted the safety culture2130of the company?2131    Mr. Ortberg. Well, in my opening remarks, Senator, I made2132the comment, we have made massive organizational, and people2133changes. And if you go back to the door plug timeframe, just to2134time-frame of the changes, we have got a new Chairman of our2135Board. We have got a new CEO. We have got a new head of our2136Boeing commercial airplanes. We have new people in many of the2137program management roles.2138    And so, we are changing. As we are changing the culture, we2139are also changing people to make sure they are focused on2140safety and quality as the foundation of the company. And so2141far, I would say the results are showing good results.2142    We will continue to have to refine either promoting2143different people or bringing some additional people from the2144outside to help us on our journey, but I think the progress we2145have made so far looks like we are getting the results we want.2146    The Chairman. Ranking Member Cantwell.2147    Senator Cantwell. Thank you, Mr. Chairman. I just wanted to2148ask a couple of follow ups on the--just the broader subjects.2149But one, is the company concerned about a corporate monitor in2150the DOJ discussions of the settlement with the families of the2151victims? Are you concerned about that? Do you have a problem2152with that?2153    Mr. Ortberg. No, Senator. As you--I am sure you are very2154aware, we had an agreement with the DOJ. We reached an2155agreement, which did include a corporate monitor. That2156agreement was not accepted by the courts.2157    And so, we are in the process right now of going back with2158the DOJ and coming up with an alternate agreement. Look, I want2159this resolved as fast as anybody. We are still in those2160discussions and hopefully, you know, hopefully we will have new2161agreement here soon.2162    Senator Cantwell. Do you have a problem with the corporate2163monitor?2164    Mr. Ortberg. Senator, I don't want to prejudge what the2165outcome of those discussions is going to be. I don't personally2166have a problem, no.2167    Senator Cantwell. OK. On the, I mentioned in my statement,2168thermoplastics. Do you see this thermoplastics as a really--a2169game changing manufacturing technology focus? Is it really what2170people are saying? Is it really something that we as a nation2171have to get focused on? By that, I mean our skilling of a2172workforce, test bedding technology, being ready for the next2173big aviation change?2174    Mr. Ortberg. Yes, Senator. First of all, I appreciate your2175leadership in this particular area and the hub work that you2176have done in Washington is very helpful------2177    Senator Cantwell. For the supply chain. We just lifted that2178up a little bit, yes.2179    Mr. Ortberg. Yes. No, I think thermoplastics offer a huge2180advantage for the future, and probably more to streamline the2181production of the aircraft. And so, I think it is an2182important--one of those major important technology areas we2183should be investing in, and I think that it is going to find2184its way into many applications in the future aircraft2185environment.2186    Senator Cantwell. But do you see it as something that we,2187if we neglect, that we could fall behind in as a nation2188juxtaposed to other countries? And I mentioned earlier the2189demand for 40,000 planes worldwide. I mean, that is an2190unbelievable--if we are somewhere--in the Nation it is about 22191million. I think we have come up with this number, 2 million2192impacted workers in aviation in general.2193    But if you think about what 40 million--I mean, 40,0002194plane represents, it is a huge demand increase. But if getting2195a big part of that means doing the right investments and2196innovation, and we have always looked at this and said get the2197safety right. Focus on the innovation. Don't cut the safety2198person who. is just doing this inspection on these critical2199parts. Go get the innovation right.2200    So, is it really that big of an innovation sea change, I2201guess is the question, juxtaposed to that demand? Or could we2202wake up in 5 years and find ourselves way behind?2203    Mr. Ortberg. Senator, I think in general we are a little2204behind. I think Europe has invested probably more than we have2205general in this particular area. I don't think we are behind in2206a way that we can't recover.2207    I do think it is an area that we need to continue to have2208overall focus, not just as the Boeing Company, but you know, in2209terms of new technology evolution within the country. And I2210think thermoplastics isn't an area that--is an area that can2211differentiate in a lot of different product applications. So, I2212support your efforts for sure.2213    Senator Cantwell. Yes. Well, and I am just, again, on the2214workforce side, this is a big opportunity for a lot of jobs in2215the United States. Is it not?2216    Mr. Ortberg. Yes.2217    Senator Cantwell. Are you continuing to grow?2218    Mr. Ortberg. Yes, I think so. I think what you will see is2219thermoplastics will replace typical metal applications. And as2220you know, how to do that is a totally different manufacturing2221process. So, we will have to learn how to do that.2222    We will have to train a whole different kind of2223application, a different workforce to utilize thermoplastics.2224And so, you know, I think we are on that journey, but we have2225got a lot of work to do.2226    Senator Cantwell. Thank you. Thank you, Mr. Chairman.2227    The Chairman. Thank you, Mr. Ortberg. Thank you for your2228testimony here today. Senators will have until the close of2229business on Wednesday, April 9 to submit questions for the2230record.2231    The witness will have until the close of business2232Wednesday, April 23 to respond to those questions. This2233concludes today's hearing. The Committee stands adjourned.2234    [Whereupon, at 12:13 p.m., the hearing was adjourned.]22352236                            A P P E N D I X22372238     Response to Written Question Submitted by Hon. John Thune to2239                             Kelly Ortberg2240    Question. Former Federal Aviation Administration (FAA)2241Administrator Michael Whitaker capped production of 737 MAX planes at224238 aircraft per month after the Alaska Airlines door plug incident in2243January of 2024. Boeing is currently producing under that production2244cap rate of 38 737 MAX planes per month. The FAA's cap was justifiably2245intended to reorient the company toward a focus on quality and safety.2246However, Boeing's failure to meet the FAA-imposed production cap and2247subsequent delay in delivering aircraft to major airlines impacts2248flight safety and availability across the country, including in my home2249state of South Dakota.2250    Please detail the specific steps Boeing is taking get back on2251schedule and safely increase production of the 737 MAX.2252    Answer. To meet our commitments to our customers, Boeing is working2253to ensure stability across our production system and within our supply2254chain so that we can safely increase 737 production. A critical step to2255ensuring this stability is Boeing's implementation of its safety and2256quality plan, under the close oversight of the FAA. Boeing developed2257this plan based on feedback from the FAA, employees, customers, and2258independent experts. The plan focuses on four major work areas:2259reducing defects, enhancing employee training, simplifying processes2260and procedures, and elevating our safety and quality culture.2261    The plan also sets forth measures--known as key performance2262indicators (``KPIs'')--to continuously monitor and manage the health of2263our production system. Each KPI has defined criteria that help identify2264areas of potential risk to our operations and trigger corrective action2265through our Safety Management System (``SMS''). These metrics have2266helped Boeing conduct more targeted safety risk assessments in priority2267areas and maintain production health.2268    The KPIs are important criteria that we use to measure the2269stability of our production system, which is necessary to increase the2270737 production rate beyond 38 airplanes per month. If the KPIs are not2271showing production stability, then we will not request to move to a2272higher production rate. Boeing closely monitors the KPIs, shares them2273with the FAA, and regularly discusses them with the FAA. It is2274important that we do this right rather than fast to ensure that we are2275not increasing the production rate before the production system is2276ready. That said, the KPIs are generally trending in the right2277direction, and we are encouraged with the progress we are making.2278                                 ______22792280    Response to Written Questions Submitted by Hon. Jerry Moran to2281                             Kelly Ortberg2282    Question 1. It's clear Boeing has taken steps individually, and at2283the direction of the FAA, to conduct safety audits, identify Key2284Performance Indicators (KPIs), minimize traveled work, and employ other2285process changes to address systemic issues.22862287    a. How are you measuring sustained progress on the production line2288in Wichita and in Renton, Everett, and other Boeing facilities?2289    Answer. Boeing is implementing a comprehensive plan to improve2290safety and quality across our production system and within our supply2291chain, under the close oversight of the FAA. Boeing developed this plan2292based on feedback from the FAA, employees, customers, and independent2293experts. The plan focuses on four major work areas: reducing defects,2294enhancing employee training, simplifying processes and procedures, and2295elevating our safety and quality culture.2296    The plan also sets forth six measures--known as key performance2297indicators (``KPIs'')--to continuously monitor and manage the health of2298our production system. These KPIs, which are listed below, are2299important criteria that we use to measure the sustained progress of our2300production system, including our supply chain. The KPIs are:23012302   Employee proficiency, which measures the share of employees2303        currently staffed who are deemed proficient in core skills.23042305   Notice of Escape (NoE) rework hours, which measures time2306        performing rework due to non-conforming work from Boeing2307        Fabrication and suppliers.23082309   Supplier shortages, which measures shortages per day from2310        Boeing Fabrication and suppliers.23112312   Rework hours per airplane, which measures time spent2313        performing rework in Final Assembly.23142315   Travelers at factory rollout, which measures unfinished jobs2316        traveling from Final Assembly.23172318   Ticketing performance, which measures quality escapes per2319        ticketed airplane prior to delivery.23202321    Each KPI has defined criteria that help identify areas of potential2322risk to our operations and trigger corrective action through our Safety2323Management System (``SMS''). These metrics have helped Boeing conduct2324more targeted safety risk assessments in priority areas and maintain2325production health. The KPIs are geared to monitoring three main areas2326essential to production system health: employee staffing and2327proficiency (KPI #1 in the list below), the performance and stability2328of Boeing's and its suppliers' production systems (KPIs #2, 3, and 4);2329and the quality of Boeing's production system output (KPIs #5 and 6).23302331    Question 2. You indicate six metrics outlining your Safety and2332Quality Plan with the FAA.23332334    a. Are you anticipating shifts in the parameters for these metrics2335as you receive feedback from the FAA, your airline customers, but also2336Boeing employees?2337    Answer. Boeing worked with the FAA to select the six KPIs2338identified in our comprehensive safety and quality plan. The KPIs have2339been established and operationalized across Boeing Commercial Airplane2340(``BCA'') programs and will be continuously assessed for potential2341modification based on implementation experience.23422343    b. What gives you confidence that the issues that predicated the2344door-plug incident--fuselage defects upon arrival, improper2345reinstallation, lack of documentation of the process, etc.--have been2346resolved and result in safe airplanes to operate and fly in?2347    Answer. In the wake of the Alaska Airlines Flight 1282 accident,2348Boeing took action to ensure the safety of our fleet and production2349operations for all of our airplanes. The NTSB has reported that a door2350plug was removed from the Alaska Airlines Flight 1282 accident airplane2351for rework and was improperly reinstalled, and that required records2352for the rework were not created, which is contrary to Boeing's policy.2353Following the accident, in Boeing factories, we revised build plans to2354ensure the security of all door plugs and added inspections to validate2355proper installation. More broadly, to ensure compliance with removal2356requirements, we mandated new removal training, tightened restrictions2357on who can initiate a removal, and clarified our policy. We have also2358taken broader actions to significantly reduce defects at our fuselage2359supplier. Boeing has confidence in the actions it has taken--and2360continues to take--based on the results we are seeing. For example, as2361of March 2025, we have seen a 58 percent reduction in defects per 7372362fuselage from Spirit. We also have confidence in our actions because we2363believe in the dedication of our employees and suppliers.23642365    c. How has communication changed between supervisors and scheduled2366assembly and maintenance employees?2367    Answer. Boeing is committed to effectively engaging and2368communicating with all employees to strengthen our culture of safety,2369quality, and compliance. As part of our comprehensive safety and2370quality plan, we have taken actions to enhance manager communication2371with front-line personnel, since it is critical that we listen to and2372learn from our employees.2373    Following the Alaska Airlines Flight 1282 accident, we held quality2374stand downs across every major BCA facility. More than 70,000 employees2375participated in these events, which paused operations for a full2376workday to focus on safety, quality, and compliance issues. The quality2377stand downs generated over 26,000 improvement ideas from our employees.2378The centerpiece of the events were breakout sessions at which front-2379line personnel and managers participated in structured conversations2380and activities to identify underlying quality challenges and reinforce2381the importance of core values. We have transitioned from these stand2382down events to holding quarterly manager-led safety and quality events2383across BCA to maintain focus on these issues and facilitate2384communication between managers and front-line personnel.2385    In addition, based on employee feedback, we have implemented2386Employee Involvement Teams (``EITs'') across BCA, to bring teammates2387from different work disciplines together to raise and solve issues, ask2388questions, and offer assistance. EITs convene manufacturing personnel,2389front-line leaders, and supporting personnel for weekly problem-solving2390sessions, during which members review, track, and resolve employee-2391generated ideas for improving the production system. We are continuing2392to enhance EITs to further facilitate manager communication with front-2393line personnel.2394    More broadly, Boeing is actively working to change our culture to,2395among other things, improve communications between managers and their2396employees. To help facilitate this culture change, we recently used2397extensive employee feedback from an all-employee survey and a culture2398working group of employees to redefine Boeing's values and behaviors.2399These values and behaviors will be core to our culture change, as they2400will redefine how we work with one another every day, how we manage2401performance, and how we develop our people. These values include having2402a focus on our people. For our managers, that involves effectively2403communicating with their teams, listening to them, and making2404improvements for them. Success will mean creating a cohesive culture2405where the new values and behaviors are deeply embedded in our daily2406operations and everyone is held accountable to living them every day.2407This includes making measurable improvements in manager engagement with2408employees and employee sentiment.24092410    Question 3. Last fall, Boeing machinists voted to approve a2411contract offer that ended a bruising eight-week strike in Washington-2412state and California.24132414    a. Can you speak to how Spirit's continued operations and2415nimbleness during that eight-week period allowed for a stronger ramp in2416production following the conclusion of the strike?24172418    b. Will the surplus of 737 MAX fuselages coming from Wichita during2419the strike and Spirit's current readiness assist Boeing's ability to2420meet its production goals for the year?2421    Answer. Spirit is Boeing's largest supplier, building significant2422structures and components for all Boeing commercial airplane models,2423including fuselages for the 737. We are excited about the plan to2424reintegrate Spirit into Boeing. As one company, our world-class2425engineers and mechanics can work more seamlessly together to design,2426build, and deliver safe, high-quality airplanes to our customers.2427Boeing's planned acquisition of Spirit will enable us to further2428strengthen safety, quality, and stability. During the International2429Association of Machinists (``IAM'') 751 strike last year, we were2430fortunate that Spirit was able to build up an inventory of 7372431fuselages. In addition, the Spirit team did a great job of improving2432the overall quality and production flow of 737 fuselages, which they2433have continued to do. As a result, 737 fuselages were not a constraint2434on Boeing's ability to re-start production after we completed our2435contract negotiations with the IAM. And, currently, Boeing does not2436view fuselages as a constraint on 737 production.24372438    Question 4. Steady competition in the aviation and aerospace2439industry results in a healthy supply chain.24402441    a. How are you utilizing the changes you have outlined this morning2442to influence your ability to compete for next-generation aircraft2443design?2444    Answer. Boeing is an airplane company and at the right time in the2445future we need to develop a new airplane. We have a lot of work to do2446before then. But the changes we are making now to address the2447challenges of today will help set the foundation to enable Boeing to2448develop a new airplane. These changes include stabilizing our business,2449improving execution on our airplane development programs, evaluating2450our product portfolio to ensure we are focused on what will keep us2451growing and competitive in the long term, and restoring our balance2452sheet so that we do have a path to the next commercial aircraft.24532454    Question 5. On March 6th, a Seattle Times report highlighted a2455then-recent dialogue you held with employees in St. Louis and joined by2456employees virtually. Some quoted in the article indicate, ``The only2457thing that matters to us is what we see on the factory floor''. During2458the hearing, we discussed some changes that have been made on the2459factory floor.24602461    a. Though, are there particular actions you are taking to make2462certain you meet the expectations set by your workforce?24632464    b. We have also discussed what sustained progress looks like on the2465factory floor for strong production numbers, but what does sustained2466progress mean to your employees?2467    Answer. Boeing is taking action to meet our workforce's2468expectations by, among other things, changing our culture. Working2469together to fix Boeing's culture will take time, but it is perhaps the2470most important change we need to make as a company. Restoring the2471values that were foundational to Boeing's storied history and setting2472expectations for behavior will move us forward. Change must start at2473the top and includes getting Boeing's leaders back to the factory2474floor, into our engineering labs, and connected to other places where2475our people work every day. Boeing's leaders must understand and remove2476the challenges our teams face to make it easier for them to do their2477jobs. For our teammates, we need to restore our trust in one another2478and break down the barriers that prevent us from working together2479across the company.2480    To help facilitate this culture change, we launched a culture2481working group of Boeing employees focused on sharing ideas and2482perspectives from across the company. In addition, we conducted a2483confidential all-employee survey focused on improving our workplace and2484culture, which the vast majority of Boeing employees took. Employee2485feedback from this survey and culture working group were recently used2486to redefine Boeing's values and behaviors. The redefined values and2487behaviors will be used to help guide Boeing's culture change efforts2488and will provide a baseline for measuring progress over the years. They2489will be built into every step of the employee experience, including2490performance management and leadership development. Success will mean2491creating a cohesive culture where the new values and behaviors are2492deeply embedded in our daily operations and everyone is held2493accountable to living them every day. This includes making measurable2494improvements in manager engagement with employees and employee2495sentiment. There is nothing more important than creating a culture2496where we're all working together. While it will take time and a2497concerted effort, when we get it right, our culture will lead to our2498future success.24992500    Question 6. You recently hosted Secretary Duffy and FAA Acting2501Administrator Rocheleau at Boeing's 737 and 777 production facilities2502in Washington state. After their visit, they committed to maintaining2503the FAA cap on 737 MAX production--leaving it to Boeing to provide the2504confidence that lifting the cap will not negatively impact safety or2505quality.25062507    a. What do you need to see in Boeing's MAX production to deliver to2508Secretary Duffy, Acting Administrator Rocheleau, and the American2509people the confidence needed to consider any changes in the current2510production cap?2511    Answer. Boeing is working to ensure stability across our production2512system and within our supply chain so that we can safely increase 7372513production. A critical step to ensuring this stability is Boeing's2514implementation of its safety and quality plan, under the close2515oversight of the FAA. As discussed above, the plan also sets forth KPIs2516to continuously monitor and manage the health of our production system.2517The KPIs are important criteria that we use to measure the stability of2518our production system, which is necessary to increase the 7372519production rate beyond 38 airplanes per month. If the KPIs are not2520showing production stability, then we will not request to move to a2521higher production rate. Boeing closely monitors the KPIs, shares them2522with the FAA, and regularly discusses them with the FAA. It is2523important that we do this right rather than fast to ensure that we are2524not increasing the production rate before the production system is2525ready. That said, the KPIs are generally trending in the right2526direction, and we are encouraged with the progress we are making.2527                                 ______25282529   Response to Written Questions Submitted by Hon. Maria Cantwell to2530                             Kelly Ortberg2531Quality Inspection Changes--Verification Optimization2532    The FAA approved changes to Boeing's quality inspection process--2533known as Verification Optimization--to allow Boeing to forgo regular2534inspections by trained quality inspectors based on a risk assessment2535process.2536    Instead of keeping quality personnel responsible for determining2537whether or not a job performed on the assembly line or a part complies2538with FAA regulations, mechanics are now responsible for making this2539decision, which means they have to inspect and sign off on their own2540work.25412542    Question 1. How are these changes to quality inspections ensuring2543that your airplanes comply with FAA-approved designs?2544    Answer. Boeing is committed to quality, and inspections are an2545important part of checking our work to ensure that we produce and2546deliver conforming aircraft to our customers. To that end, we have2547increased the number of quality inspections on the 737 program in2548recent years. These inspections are conducted throughout every2549airplane's build process, including during final assembly, in wings,2550and during pre-flight. Although the number of inspectors fluctuates2551with production rate, we have also increased the number of quality2552inspectors on the 737 program in recent years.2553    Beginning in 2018 and concluding in 2021, Boeing implemented an2554initiative called Verification Optimization to reduce visual2555inspections by relying more heavily on technology and precision2556manufacturing to maintain quality. While some inspectors were2557redeployed elsewhere in the factory, we entered into an agreement with2558the International Association of Machinists (``IAM'') that no union2559jobs would be lost. Boeing discontinued Verification Optimization in25602021 and added inspections back into the process. Some of the added2561inspections were ones that had been removed, and some were new--the net2562result is that there are now more inspections than there were before2563Verification Optimization began.2564    Boeing's inspection processes are conducted by properly trained2565personnel under appropriate controls and oversight.25662567    Question 2. How are inspection requirements being met on the2568production line if mechanics are not trained in quality assurance as2569much as quality inspectors, but yet still have to inspect and sign off2570on their own work?2571    Answer. Please see the response to Question 1.2572ADS-B In Equipage2573    In 2008, the NTSB told FAA that it should mandate ADS-B In, not2574just ADS-B Out, in aircraft operating in controlled airspace. NTSB said2575at the time that ``equipage of aircraft with ADS-B In capability will2576provide an immediate and substantial contribution to safety, especially2577during operations in and around airports.'' But fifteen years later,2578commercial aircraft are still not required to have ADS-B In.25792580    Question 1. Do you believe that ADS-B In would strengthen safety2581for commercial airlines operating in complex airspace near busy2582airports?2583    Answer. There are certain Automatic Dependent Surveillance-2584Broadcast (``ADS-B'') In applications that can help enhance safety for2585aircraft operating in high-density or complex airspace. ADS-B Out2586generally refers to the automatic broadcast by an aircraft of its GPS2587location, altitude, velocities, and other data to ground stations and2588other aircraft. ADS-B In generally refers to applications that leverage2589ADS-B Out data to provide capabilities and benefits for flight crews2590and/or air traffic control. There is no single ADS-B In application.2591Instead, there are multiple ADS-B In applications--some developed and2592others being researched. The capabilities and benefits of ADS-B In2593applications vary from application to application. The benefits of ADS-2594B In applications can include safety enhancements, improved situational2595awareness, and/or increased operational efficiency.25962597    Question 2. What are the options that Boeing can provide to help2598airline customers ensure ADS-B In can be easily installed on Boeing2599aircraft?2600    Answer. The research, development, and deployment of ADS-B In2601applications depends on the efforts and coordination of multiple2602aviation stakeholders, including the FAA, avionics suppliers, and2603aircraft manufacturers. Through the years, Boeing has played an active2604role in the research, development, and deployment of ADS-B In2605applications. Currently, certain ADS-B In applications are available2606for some of our aircraft. We continue to research additional ADS-B In2607applications, work with avionics suppliers to mature requirements for2608ADS-B In applications, and study the potential deployment of ADS-B In2609applications on additional aircraft.2610Regulatory Compliance--Aircraft Certification2611    Since the certification of the 737 MAX, FAA and others have2612identified numerous safety issues with the airplane's design that do2613not meet FAA's airworthiness standards. One example is the engine anti-2614ice system for which Boeing sought an exemption. I joined Sen.2615Duckworth in stating that it wasn't the time to talk about exemptions--2616it was time to fix this safety problem as soon as possible.26172618    Question 1. The FAA Reauthorization Law, enacted last May, requires2619aviation manufacturers to certify that their aviation product designs2620are compliant when they submit data to FAA for approval. What is Boeing2621doing to comply with this requirement?2622    Answer. The FAA's regulations require an applicant for a type2623certificate or for approval of a major change in type design to show2624compliance with all applicable requirements, provide the FAA the means2625by which such compliance has been shown, and certify it has complied2626with the applicable requirements.2627    To comply with these regulations, under the authority of the Boeing2628Chief Program Engineer for each airplane model, Boeing certifies to the2629FAA that each product design requiring the submittal of data to the FAA2630for approval has complied with the applicable airworthiness standards.2631For each individual data submittal, Boeing also requires the engineer2632responsible for the design data to attest that the submitted data is2633complete, accurate, and demonstrates compliance to the applicable2634airworthiness standards. Further, the Boeing Organization Designation2635Authorization (``ODA'') Procedures manual, which the FAA approves,2636emphasizes that Boeing, as the applicant, is responsible for a complete2637and accurate showing of compliance for every change to type design.2638    Boeing is currently working with the FAA as it implements all of2639the new requirements created by the FAA Reauthorization Act of 2024. We2640will continue to follow the lead of the FAA as they work through the2641law's statutory changes.26422643    Question 2. What systematic changes are you making to improve2644Boeing's compliance with FAA airworthiness and certification standards?2645    Answer. Boeing has implemented important measures to improve the2646compliance of engineering data with FAA airworthiness and certification2647standards. These improvements have focused on raising engineering2648knowledge of key design and regulatory requirements, clarifying and2649standardizing procedures for developing design data submitted to the2650FAA, and ensuring ODA unit members maintain independence in the2651performance of their FAA authorized functions. The improvement measures2652include:26532654   Enhancing our engineering workforce training curriculum2655        covering the FAA's type certification procedures and2656        airworthiness standards, since knowledge of this information is2657        foundational to ensuring product design compliance.26582659   Increasing technical excellence in our engineering designs2660        and compliance with certification requirements through2661        documentation and use of curated design practices that capture2662        key engineering knowledge, lessons learned, and best practices2663        drawn from Boeing's long history of aerospace design2664        innovation.26652666   Using independent Technical Design Reviews led by domain2667        experts to identify risks and issues earlier in the design2668        process and help ensure first-pass engineering quality.26692670   Clarifying and strengthening procedures to create and2671        validate design safety assessments, and standardizing and2672        documenting engineering guidance for applying robust system2673        engineering principles, such as development assurance.26742675   Establishing enterprise-wide Functional Chief Engineers2676        dedicated to ensuring technical excellence. Most recently this2677        includes the appointment of a Human Factors Functional Chief2678        Engineer, who is a senior engineering leader dedicated to2679        ensuring excellence within the practice of human factors across2680        Boeing.26812682   Strengthening the ODA system by completing the re-2683        organization of ODA engineering unit members to give them an2684        independent reporting structure aligned with their functional2685        engineering organizations.2686Safety Reporting Systems and ASAP Reporting2687    A key component of an effective SMS is an effective employee safety2688reporting system and voluntary reporting culture, in which frontline2689workers feel that their safety concerns will be heard and meaningfully2690addressed, without fear of retaliation.2691    The ODA Expert Review Panel recommended that Boeing implement an2692Aviation Safety Action Program (ASAP) at all production sites. ASAP is2693a tri-party agreement for the FAA, Boeing, and a union representing2694Boeing employees to jointly review filed safety reports and address2695problems early.2696    ASAPs would leverage Boeing's current employee reporting system--2697known as Speak Up--while providing important transparency for FAA on2698what concerns are raised.2699    While the Machinists, Boeing, and the FAA have a tri-party2700agreement for the Everett and Renton production lines, modeled after2701ASAP, it took years of advocacy by the Machinists to get there. And2702now, public reporting highlights that, in trying to reach an ASAP2703agreement for Puget Sound facilities with the engineering union SPEEA,2704Boeing would like to control the flow of information that reaches the2705FAA.27062707    Question 1. Is controlling the flow of information part of an2708effective reporting system? Is it part of a healthy safety culture? Why2709or why not?2710    Answer. Boeing is focused on fostering a healthy safety culture by2711empowering and encouraging all employees to speak up if they have2712safety or quality concerns. We have a reporting system called Speak Up2713that provides every employee with the opportunity to anonymously or2714confidentially report safety and quality concerns related to Boeing2715products and services. Retaliation against those who do is strictly2716prohibited and Boeing has strong policies against such conduct that we2717consistently communicate to our employees.2718    In 2024, the FAA issued a 14 C.F.R. Part 5 Safety Management System2719(``SMS'') rule that requires Boeing to have ``[a] confidential employee2720reporting system in which employees can report hazards, issues,2721concerns, occurrences, incidents, as well as propose solutions and2722safety improvements, without concern of reprisal for reporting.'' 142723C.F.R. Sec. 5.71(a)(7). Boeing has implemented this requirement through2724Speak Up. With respect to the flow of information, the FAA's SMS rule2725requires Boeing to submit an anonymized summary of its confidential2726employee reports to the FAA once every six months. 14 C.F.R.2727Sec. 5.71(c). Boeing is working on implementing this requirement.27282729    Question 2. Do you consider it to be important for FAA to have2730visibility into a filed ASAP report? If yes, why? If no, why not?2731    Answer. As described above, through the implementation of the FAA's2732SMS rule, the FAA will have visibility into anonymized Speak Up2733reports. In addition, the FAA currently has visibility into certain2734Speak Up reports under a tri-party agreement between Boeing, the FAA,2735and the International Association of Machinists (``IAM'') 751 in2736Washington state. Under this agreement, which is modeled after the2737Aviation Safety Action Program (``ASAP''), the FAA sits on an event2738review committee (``ERC'') that jointly reviews certain product safety-2739related issues reported through Speak Up by IAM 751-represented2740employees.27412742    Question 3. What are you doing to implement the ODA Expert Review2743Panel's recommendation to set up an ASAP at all Boeing production2744sites?2745    Answer. Boeing supported the Aircraft Certification, Safety &2746Accountability Act Section 103 Organization Designation Authorization2747(``ODA'') Expert Panel's review and acknowledges the importance of its2748work. Under the FAA's oversight, we have been working to make changes2749in response to the panel's recommendations and we will continue that2750critical work. As described above, Boeing, the FAA, and IAM 751 in2751Washington state currently have a tri-party agreement, which is modeled2752after ASAP. Like the expert panel, we recognize the value of this2753program. We are evaluating its progress and considering deploying2754similar programs more broadly. For example, we have had discussions2755with the Society of Professional Engineering Employees in Aerospace2756(``SPEEA'') about adopting an ASAP-like tri-party agreement that would2757continue to strengthen safety, quality, and compliance.27582759    Question 4, What steps have you taken since the Alaska 12822760accident to ensure Boeing's Speak Up system does not filter out2761legitimate complaints and concerns?2762    Answer. As described above, Boeing empowers and encourages all2763employees to speak up if they have safety or quality concerns. Boeing2764understands the importance of carefully reviewing the reports submitted2765to our Speak Up system. Accordingly, once a report is received in Speak2766Up, a cross-functional enterprise triage team reviews the report to2767determine the nature of the issue raised and the appropriate2768investigative path for its disposition. Since the Alaska Airlines2769Flight 1282 accident, Boeing has taken important steps to simplify and2770enhance the Speak Up system process. Boeing increased promotion of how2771to report, the benefits of reporting, and the confidentiality2772protections for those who report, resulting in a substantial increase2773in the number of reports to Speak Up. Increased reporting is a sign of2774progress toward a robust reporting culture. In addition, Boeing2775improved the Speak Up reporting interface to make it more user-friendly2776and increased transparency about the status and resolution of reports.2777As a result, employees who confidentially submit Speak Up reports2778receive e-mail notifications about the status of their reports and can2779check the status of their reports on a personalized dashboard.2780                                 ______27812782Response to Written Questions Submitted by Hon. Lisa Blunt Rochester to27832784                             Kelly Ortberg2785Safety Inspectors2786    Question 1. Given the concerns raised about Boeing's Organization2787Designation Authorization (ODA) program contributing to past safety2788incidents, what specific measures has Boeing implemented to ensure its2789self-inspection processes are rigorous and transparent?2790    Answer. Organization Designation Authorization (``ODA'') is an FAA2791program that authorizes certain approved Boeing personnel to act as2792representatives of the FAA for certain purposes. These ODA personnel2793only act on behalf of the FAA when delegated by the FAA to do so.2794Boeing employees selected as ODA unit members perform a critical role2795on behalf of the FAA in aircraft certification and safety assurance. In2796recent years, under FAA oversight, Boeing has implemented important2797measures to strengthen our ODA program and improve independence so that2798ODA unit members can perform their delegated duties free from2799interference. These measures include:28002801   Restructuring the management and reporting structure of our2802        ODA engineering unit members to give them greater independence.28032804   Adding ODA unit member capacity and improving the future ODA2805        pipeline to address retirements and to meet current needs.28062807   Establishing a dedicated ODA ombudsperson, who serves as a2808        neutral third party to advise and assist ODA unit members with2809        concerns, including related to independence.28102811   Implementing an annual assessment of the effectiveness of2812        the Boeing ODA Administration team's oversight of the ODA2813        program with the goal of improving support to the ODA unit.28142815   Updating the ODA unit member interference reporting process2816        and associated training.28172818   Creating and disseminating design practices and2819        participating in technical design reviews to ensure that our2820        historical best practices are applied to design changes through2821        detailed technical reviews by engineers and independent expert2822        reviewers.2823Safety Culture and Employee Reporting2824    Question 1. Reports have indicated that Boeing's safety management2825system (SMS) may confuse employees, potentially hindering effective2826safety reporting. What steps is Boeing taking to simplify and clarify2827safety protocols to encourage proactive reporting and address safety2828concerns raised by employees?2829    Answer. Over the last year, simplification has been a focus area2830for Boeing and has resulted in changes to both our reporting system2831processes and other important Safety Management System (``SMS'')2832processes. Boeing is focused on fostering a healthy safety culture by2833empowering and encouraging all employees to speak up if they have2834safety or quality concerns. We have a reporting system called Speak Up2835that provides every employee with the opportunity to anonymously or2836confidentially report safety and quality concerns related to Boeing2837products and services. Retaliation against those who do is strictly2838prohibited and Boeing has strong policies against such conduct that we2839consistently communicate to our employees.2840    Since the Alaska Airlines Flight 1282 accident, Boeing has taken2841important steps to simplify and enhance the Speak Up system process.2842Boeing increased promotion of how to report, the benefits of reporting,2843and the confidentiality protections for those who report, resulting in2844a substantial increase in the number of reports to Speak Up. Increased2845reporting is a sign of progress toward a robust reporting culture. In2846addition, Boeing improved the Speak Up reporting interface to make it2847more user-friendly and increased transparency about the status and2848resolution of reports. As a result, employees who confidentially submit2849Speak Up reports receive e-mail notifications about the status of their2850reports and can check the status of their reports on a personalized2851dashboard.2852Workforce Challenges/Inspectors2853    Question 1. Boeing has faced notable challenges in recruiting and2854retaining qualified safety inspectors, particularly following2855significant workforce reductions during the COVID-19 pandemic. This2856loss of experienced personnel has been linked to subsequent quality2857control issues. Additionally, the FAA has encountered difficulties in2858maintaining adequate staffing for effective oversight of Boeing's2859operations. Given these challenges, what specific strategies is Boeing2860implementing to attract, train, and retain a skilled safety inspector2861workforce to uphold the highest safety standards in manufacturing and2862quality control?2863    Answer. Boeing is committed to attracting, training, and retaining2864a talented workforce, including quality inspectors and mechanics, to2865produce safe, high-quality airplanes. Boeing offers employees a wide2866range of competitive benefits, including market-leading health and2867retirement plans, paid time off, and programs that support employees,2868their families, and communities. For example, in November 2024, we2869completed union contract negotiations with the International2870Association of Machinists (``IAM'') in Washington state and Oregon that2871included a thirty-eight percent general wage increase over four years.2872Boeing also supports the performance, development, and professional2873growth of our workforce, including by providing meaningful work2874assignments, generous tuition assistance, leadership development2875opportunities, and virtual and in-person learning resources.2876    As part of Boeing's comprehensive safety and quality plan, we are2877enhancing training and development of our quality inspectors and2878mechanics. Often new employees join us with varying experience levels.2879As a result, we are investing in comprehensive training programs to2880improve their baseline expertise. Our goal is to ensure all employees2881have the necessary knowledge and skills to perform their roles2882effectively. For example:28832884   We have overhauled our foundational training, lengthening2885        its duration to better equip new employees, and enhanced on-2886        the-job training.28872888   We have added hundreds of hours of new curriculum to2889        training programs.28902891   We have deployed workplace coaches and peer trainers and2892        established skills enhancement centers on the production floor.28932894   We have implemented proficiency assessments for many quality2895        inspectors and mechanics, ensuring their understanding of2896        drawings and specifications.28972898    In addition, as part of our safety and quality plan, we are2899simplifying the plans and processes that our quality inspectors and2900mechanics use to perform their jobs. For example, we are consolidating2901and clarifying procedures and eliminating overlaps and confusion in2902build plans and work instructions to make them more accessible and2903understandable to our employees, particularly those with less2904experience.29052906    Question 2. How is Boeing collaborating with the FAA to ensure that2907both organizations have the necessary personnel to maintain rigorous2908safety oversight now and in the future? Can you also provide general2909projections on the number of safety inspectors required to meet future2910needs?2911    Answer. Under the FAA's close oversight, Boeing is implementing our2912comprehensive safety and quality plan. One of the plan's major work2913areas is enhancing employee training, which will help ensure that2914Boeing has the necessary personnel to maintain safety and quality in2915our production system now and in the future. To that end, Boeing worked2916with the FAA to select a KPI that focuses on employee proficiency. This2917KPI measures the share of employees currently staffed who are deemed2918proficient in core skills. Each KPI, including the employee proficiency2919KPI, has defined criteria that help identify areas of potential risk to2920our operations and trigger corrective action through our Safety2921Management System (``SMS''). Boeing closely monitors these KPIs, shares2922them with the FAA, and regularly discusses them with the FAA.2923    With respect to FAA Aviation Safety Inspectors, in September 2025,2924then-FAA Administrator Michael Whitaker told Congress the following2925about the number of FAA Aviation Safety Inspectors at Boeing production2926and supplier facilities: ``The total target to answer your direct2927question is 55 by the end of the year. We're at 46 right now, and we2928expect to hit the 55. Basically, it's 13 in any of the three big Boeing2929facilities and 16 in various supplier facilities.'' Our understanding2930is that there are currently more than 50 FAA Aviation Safety Inspectors2931resident in Boeing production and supplier facilities. However, the FAA2932would be the best source for a definitive answer on current FAA2933Aviation Safety Inspector staffing levels and future needs.2934Long-Term Safety Improvement Plans2935    Question 1. Beyond immediate corrective actions, what long-term2936strategies does Boeing have in place to institutionalize a culture of2937safety, ensure continuous improvement in safety practices, and prevent2938future lapses in safety oversight?2939    Answer. In the wake of the Alaska Airlines Flight 1282 accident,2940Boeing took immediate corrective actions to ensure the safety of our2941fleet and production operations for all of our airplanes. Then, we2942gathered feedback from the FAA, employees, customers, and independent2943experts to develop a comprehensive plan to improve safety and quality2944across our production system and within our supply chain. The plan2945contains both short-term and long-term strategies. It focuses on four2946major work areas: reducing defects, enhancing employee training,2947simplifying processes and procedures, and elevating our safety and2948quality culture. We are implementing this plan under the close2949oversight of the FAA. Boeing is committed to this plan and to2950continuous improvement.2951    Among other things, the plan sets forth six measures--known as key2952performance indicators (``KPIs'')--to continuously monitor and manage2953the health of our production system. These KPIs are part of our long-2954term strategy to strengthen safety and quality. Each KPI has defined2955criteria that help identify areas of potential risk to our operations2956and trigger corrective action through our Safety Management System2957(``SMS''). These metrics have helped Boeing conduct more targeted2958safety risk assessments in priority areas and maintain production2959health.2960    As part of the plan, we are also focused on elevating our safety2961and quality culture. This includes providing our workforce with the2962long-term infrastructure and support needed for continuous improvement,2963reporting issues, and solving problems. For example:29642965   We have enhanced and further promoted the use of our2966        confidential employee reporting system--Speak Up--to report2967        safety and quality concerns.29682969   We have implemented Employee Involvement Teams across Boeing2970        Commercial Airplanes (``BCA'') to bring teammates from2971        different work disciplines together on a weekly basis to raise2972        and solve issues, ask questions, and offer assistance.29732974   We have conducted mandatory product safety and quality2975        training for all employees.29762977   We are conducting quarterly manager-led safety and quality2978        events across BCA to maintain our long-term focus on safety and2979        quality.29802981    Working together to fix Boeing's culture will take time, but it is2982perhaps the most important change we need to make as a company.2983Restoring the values that were foundational to Boeing's storied history2984and setting expectations for behavior will move us forward. Change must2985start at the top and includes getting Boeing's leaders back to the2986factory floor, into our engineering labs, and connected to other places2987where our people work every day. Boeing's leaders must understand and2988remove the challenges our teams face to make it easier for them to do2989their jobs. For our teammates, we need to restore our trust in one2990another and break down the barriers that prevent us from working2991together across the company.2992    To help facilitate this culture change, we launched a culture2993working group of Boeing employees focused on sharing ideas and2994perspectives from across the company. In addition, we conducted a2995confidential all-employee survey focused on improving our workplace and2996culture, which the vast majority of Boeing employees took. Employee2997feedback from this survey and culture working group were recently used2998to redefine Boeing's values and behaviors. The redefined values and2999behaviors will be used to help guide Boeing's culture change efforts3000and will provide a baseline for measuring progress over the years. They3001will be built into every step of the employee experience, including3002performance management and leadership development. Success will mean3003creating a cohesive culture where the new values and behaviors are3004deeply embedded in our daily operations and everyone is held3005accountable to living them every day. This includes making measurable3006improvements in manager engagement with employees and employee3007sentiment. There is nothing more important than creating a culture3008where we're all working together. While it will take time and a3009concerted effort, when we get it right, our culture will lead to our3010future success.30113012                                  [all]