Boeing CEO keeps job intact after facing questions on 737 MAX crashes

Boeing Chief Executive Dennis Muilenburg speaks during a news conference after the company's annual shareholders meeting at the Field Museum in Chicago, on Monday, April 29, 2019. (AP)
Updated 30 April 2019
Follow

Boeing CEO keeps job intact after facing questions on 737 MAX crashes

  • Muilenburg survived a shareholder motion to split his chairman and CEO roles
  • He later told reporters he would continue to lead the company through a crisis that has triggered the grounding of Boeing's fastest-selling plane

CHICAGO: Boeing Co CEO Dennis Muilenburg emerged with his job intact at an annual meeting on Monday and promised to win back the public's trust after facing tough questions in the wake of two fatal crashes of the 737 MAX plane.
Battling the biggest crisis of his nearly four years as chief executive officer, Muilenburg survived a shareholder motion to split his chairman and CEO roles.
He later told reporters he would continue to lead the company through a crisis that has triggered the grounding of Boeing's fastest-selling plane, lawsuits, investigations and lingering concerns over the 737 MAX's safety.
"I am very focused on safety going forward," he said after the meeting when reporters asked if he had considered resigning. "I am strongly vested in that. My clear intent is to continue to lead on the front of safety, quality and integrity."
However, Boeing will need to win back the trust of customers, passengers and regulators following the crashes.
"We know we do have work to do to earn and re-earn that trust and we will," Muilenburg said before ending the 16-minute news conference and ignoring shouted questions from reporters as he walked away.
The family of one American victim, 24-year-old Samya Stumo, staged a silent protest outside the meeting site in Chicago, while the families of other victims among the 157 killed in the crash of an Ethiopian Airlines 737 MAX on March 10 held a tearful press conference at a Chicago law firm.
That plane plunged to the ground shortly after takeoff from Addis Ababa, five months after a similar Lion Air nosedive in Indonesia that killed all 189 passengers and crew.
The families spoke after filing a wrongful death lawsuit against Boeing and Rosemount Aerospace Inc, which designed the sensors used in the 737 MAX, in Chicago federal court, one of dozens of lawsuits Boeing is facing over both crashes.

STUBBED TOE
Daniel Johnson, an engineer and an intermittent Boeing shareholder since 1984, said the company "really stubbed their toe" by allowing the plane's anti-stall system - called Maneuvering Characteristics Augmentation System or MCAS - to rely on only one sensor.
"The question is: Will they need to rebrand? We don’t know how much the general public actually knows what a 737 MAX is,” Johnson said outside the meeting.
About 150 shareholders gathered in the auditorium of the Chicago Field Museum for the meeting, but only a handful questioned Muilenburg over the MAX or the push to split the chairman and CEO jobs.
One shareholder asked Muilenburg what Boeing was doing on safety assessments following the crashes. The CEO said the company's commitment to safety has not wavered.
“Safety is at the core of what we do. Every day, we try to get better," Muilenburg said at the meeting, which took place exactly six months after the Lion Air crash.
Shares of the company, worth $214 billion, have lost nearly 10 percent of their value since the March 10 crash.
Boeing is under pressure to deliver a software fix to prevent erroneous data from triggering the MCAS system and a new pilot training package that will convince global regulators, and the flying public, that the aircraft is safe.
Boeing has acknowledged that the accidental firing of the software based on bad sensor data was a common link in the chain of events leading to the two accidents.
"We know we can break this link in the chain. It’s our responsibility to eliminate this risk," Muilenburg told shareholders. When asked by reporters if the MCAS system was flawed, he said only that Boeing was making improvements to it.

$1 BILLION IMPACT
The U.S. Federal Aviation Administration could clear Boeing's 737 MAX jet to fly in late May or the first part of June, two people familiar with the matter said on Friday, though Boeing has yet to submit the updated software and training for review.
Some pilots have warned that draft training proposals do not go far enough to address their concerns.
Boeing said on Monday it was making progress to certify its grounded jets with the software update.
Meanwhile, deliveries of the 737 MAX, which airlines around the world had been relying on to service a growing air travel industry for years to come, are on hold.
Muilenburg said Boeing has been talking to customers and is sensitive to the impact of the crisis on their operations. He said the focus is on getting the MAX flying again.
Last week Boeing abandoned its 2019 financial outlook, halted share buybacks and said lowered production due to the 737 MAX grounding had cost it at least $1 billion so far.
Shareholders have filed a lawsuit accusing the company of defrauding them by concealing safety deficiencies in the plane. The model is also the target of investigations by U.S. transportation authorities and the Department of Justice.
Manant Vaidya of Canada, who lost six family members in the Ethiopian crash, said he had repeatedly heard Muilenburg defending the design and certification of the 737 MAX.
"At the end of the day, if everything was followed how could the crash have occurred?" Vaidya asked at the news conference at Clifford Law Offices.


Youth voters take center stage in Bangladesh election after student-led regime change

Updated 4 sec ago
Follow

Youth voters take center stage in Bangladesh election after student-led regime change

  • About 45% of Bangladeshis eligible to vote in Thursday’s election are aged 18-33
  • Election follows 18 months of reforms after the end of Sheikh Hasina’s 15-year rule

DHAKA: When he goes to the polls on Thursday, Atikur Rahman Toha will vote for the first time, believing that this election can bring democratic change to Bangladesh.

A philosophy student at Dhaka University, Toha was already eligible to vote in the 2024 poll but, like many others, he opted out.

“I didn’t feel motivated to even go to vote,” he said. “That was a truly one-sided election. The election system was fully corrupted. That’s why I felt demotivated. But this time I am truly excited to exercise my voting rights for the first time.”

The January 2024 vote was widely criticized by both domestic and international observers and marred by a crackdown on the opposition and allegations of voter fraud.

But the victory of the Awami League of ex-Prime Minister Sheikh Hasina was short-lived, as a few months later the government was ousted by a student-led uprising, which ended the 15-year rule of Bangladesh’s longest-serving leader.

The interim administration, led by Nobel laureate Muhammad Yunus, took control in August 2024 and prepared a series of reforms to restructure the country’s political and institutional framework and organize the upcoming vote.

About 127.7 million Bangladeshis are eligible to cast their ballots, according to Election Commission data, with nearly a third of them, or 40.4 million, aged 18-29. Another 16.9 million are 30-33, making it a youth–dominated poll, with the voters hopeful the outcome will help continue the momentum of the 2024 student-led uprising.

“We haven’t yet fully transitioned into a democratic process. And there is no fully stable situation in the country,” Toha said. “After the election we truly hope that the situation will change.”

For Rawnak Jahan Rakamoni, also a Dhaka University student, who is graduating in information science, voting this time meant that her voice would count.

“We are feeling that we are heard, we will be heard, our opinion will matter,” she said.

“I think it is a very important moment for our country, because after many years of controversial elections, people are finally getting a chance to exercise their voting rights and people are hoping that this election will be more meaningful and credible. This should be a fair election.”

But despite the much wider representation than before, the upcoming vote will not be entirely inclusive in the absence of the Awami League, which still retains a significant foothold.

The Election Commission last year barred Hasina’s party from contesting the next national elections, after the government banned Awami League’s activities citing national security threats and a war crimes investigation against the party’s top leadership.

The UN Human Rights Office has estimated that between July 15 and Aug. 5, 2024 the former government and its security and intelligence apparatus, together with “violent elements” linked to the Awami League, “engaged systematically in serious human rights violations and abuses in a coordinated effort to suppress the protest movement.”

It estimated that at least 1,400 people were killed during the protests, with the majority shot dead from military rifles.

Rezwan Ahmed Rifat, a law student, wanted the new government to “ensure justice for the victims of the July (uprising), enforced disappearances, and other forms of torture” carried out by the previous regime.

The two main parties out of the 51 contesting Thursday’s vote are the Bangladesh Nationalist Party and Jamaat-e-Islami. Jamaat, which in 2013 was banned from political participation by Hasina’s government, heads an 11-party alliance, including the National Citizen Party formed by student leaders from the 2024 movement.

“I see this election as a turning point of our country’s democratic journey … It’s not just a normal election,” said Falguni Ahmed, a psychology student who will head to the polls convinced that no matter who wins, it will result in the “democratic accountability” of the next government.

Ahmed added: “People are not voting only for their leaders; they are also voting for the restoration of democratic credibility. That’s why this election is very different.”