Boeing CEO addresses 737 safety concerns on Capitol Hill
Shares of Spirit AeroSystems (SPR) rise 6% following a Seattle Times report suggesting the company is not responsible for a mid-air incident on an Alaska Airlines (ALK) flight. According to The Seattle Times, Boeing (BA) mechanics improperly reinstalled the panel after a repair on the 737 Max 9 jet. Boeing CEO Dave Calhoun appeared on Capitol Hill to discuss the safety of the company's jets with US lawmakers.
Calhoun expressed confidence in the safety of Boeing airplanes but acknowledged the gravity of the situation.
Yahoo Finance's Julie Hyman and Josh Lipton weigh in on Calhoun's comments and the challenges ahead for the aviation manufacturer.
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Editor's note: This article was written by Eyek Ntekim
Video Transcript
[AUDIO LOGO]
JULIE HYMAN: Welcome back. And we're watching shares of Spirit AeroSystems today the stock rising some 6% on a report that the company is not responsible for the door panel that blew off an Alaska Airlines jet earlier this month. It's according to the Seattle Times, which said Boeing's mechanics improperly reinstalled the panel after removing it for a repair.
That news coming as just a few hours ago Boeing CEO Dave Calhoun appeared on Capitol Hill. He met with senators about the safety of the company's jets. And here's what he said to reporters after that meeting.
DAVE CALHOUN: We believe in our airplanes. We feel that safe airplanes are people do. We have confidence in the safety of our airplanes. And that's what all of this is about. And we fully understand the gravity.
JULIE HYMAN: And that's something apparently that he told members of Congress as well. We fully understand the gravity of this situation. The issue now is what to do about it.
JOSH LIPTON: Yeah. I mean, also, remember, this-- a couple of things here. One is Calhoun's on Capitol. I mean, listen, it's a huge story. And it's a really bad story, and it's a bad headline. And Calhoun clearly feels like he has to get on Capitol Hill. He has to talk to these lawmakers and kind of answer their questions. That's on top, by the way, of the report in the Seattle Times talking about Spirit saying the company wasn't responsible for this mid-air mishap.
Obviously, the report says it was kind of Boeing mechanics that screwed up here. I saw Boeing did respond, at least talking to the press. I mean, basically, their response was, we don't have a response at this time.
JULIE HYMAN: We don't know yet.
JOSH LIPTON: Basically, yeah, the investigation is ongoing, and we're waiting.
JULIE HYMAN: Yeah. I think Calhoun took over after the 737 Max situation. And he was tasked at that point with changing the culture, improving the culture, so that this type of thing wouldn't happen. So it seems like at this point, he's not only going to have to answer to people on Capitol Hill, he's going to have to answer to shareholders and maybe even the board at some point, depending on what happens from here.
JOSH LIPTON: Yeah. Remember, of course, Boeing reports earnings next week January 31, so investors will be looking for a lot more insight, color, and commentary at that point.
