Boeing Announces Design Changes Following NTSB Hearings on Cybertruck Incident

1.5K

On Tuesday, Boeing (BA.N) disclosed its plans to implement design modifications aimed at preventing future mid-air cabin panel blowouts, following a significant incident involving an Alaska Airlines (ALK.N) 737 MAX 9 earlier this year. This accident has placed Boeing in a difficult position, triggering its second major crisis in recent years.

The National Transportation Safety Board (NTSB) has been conducting hearings to investigate the incident, which severely damaged Boeing’s reputation, led to a two-week grounding of the MAX 9, and resulted in heightened scrutiny including a criminal investigation. During the hearings, it was revealed that the NTSB and Boeing have yet to determine who was responsible for the removal and reinstallation of the plane’s door plug during production.

The NTSB’s hearings, which began on Tuesday and are expected to continue, have been extensive, lasting nearly 10 hours. The investigations focus on multiple aspects including Boeing’s manufacturing processes, safety management systems, FAA oversight, and issues related to the door plug.

Elizabeth Lund, Boeing’s Senior Vice President for Quality, stated that the company is working on design changes intended to address the problem. These changes are expected to be implemented within the year and retrofitted across the entire fleet to prevent similar incidents in the future. The changes will ensure that the door plug cannot be closed if it is not securely installed, which should mitigate the risk of a recurrence.

Investigators have identified that the door plug in the Alaska MAX 9 was missing four crucial bolts, a significant factor contributing to the incident. Boeing has also faced scrutiny over its manufacturing documentation, particularly the lack of paperwork regarding the removal of these bolts.

NTSB Chair Jennifer Homendy criticized Boeing’s safety practices, emphasizing that the company’s safety culture needs substantial improvement. The NTSB’s investigation will now shift focus to the FAA’s oversight of Boeing, with concerns raised about the agency’s previously “hands-off” approach. FAA Administrator Mike Whitaker had acknowledged in June that the agency’s oversight of Boeing had been insufficient.

In response to the investigation, Boeing has taken steps to address safety concerns. Two employees likely involved with the door plug issue have been placed on paid administrative leave. Additionally, Boeing has implemented new visual warnings and procedures to prevent unintended openings of the door plug.

The hearings also revealed systemic issues at Boeing’s factory, including a tendency among employees to deviate from established instructions and inadequate tool control. Problems with fuselages from Spirit AeroSystems, which Boeing acquired for $4.7 billion last month, were noted as contributing factors.

Boeing has faced challenges in meeting production targets for the 737 MAX, with current production levels significantly lower than the allowable 38 per month. The company has also agreed to plead guilty to a criminal fraud conspiracy charge and pay a $243.6 million fine related to two fatal 737 MAX crashes, as part of a Justice Department investigation.

As Boeing navigates these issues, the company remains focused on addressing the design flaws and improving its safety protocols to restore confidence and ensure the continued safety of its aircraft.