Boeing Unifies Safety Responsibilities--Update

By Doug Cameron 

Boeing Co. instituted a second set of internal changes aimed at bolstering its aircraft-safety culture in the wake of twin fatal crashes involving its 737 MAX jetliner.

The company said Monday that it would centralize safety oversight in a new unit to enhance such efforts and channel any concerns raised by employees, implementing recommendations from a board committee set up to review the company's aircraft design and manufacturing processes.

Boeing's new Product and Services Safety Organization will be headed by company veteran Beth Pasztor, reporting to a board-level committee that includes Chief Executive Dennis Muilenburg and Chief Engineer Greg Hyslop.

Shares in Boeing fell 0.8% to $379.97 in midday trading.

The announcement came on the day Boeing had previously set as a self-imposed deadline for delivering planned software fixes on the MAX to U.S. regulators. Some airlines such as Ryanair Holdings PLC have said they don't expect those changes to be submitted until October, based on their communications with Boeing.

Boeing didn't comment on when it would submit the software updates. It hasn't updated its July guidance that it expects regulators will approve the currently-grounded 737 Max jetliner's return to flight early in the fourth quarter.

The safety-oversight revamp comes after the company last week amended its governance rules to make safety-related experience a criterion for choosing future directors. Two of the three most recent recruits to Boeing's board -- Nikki Haley and Caroline Kennedy -- have political backgrounds. The third, Robert Bradway, CEO of drugmaker Amgen Inc., has experience with federal regulators.

Ms. Pasztor previously served as head of safety, security and compliance at Boeing's commercial jetliner arm. She will also oversee its existing accident-investigations team and safety review boards, as well as Boeing staff seconded to handle aircraft certification work handled overseen by the Federal Aviation Administration.

Boeing also said it had expanded an anonymous reporting system for employees to flag concerns and strengthened existing safeguards such as safety review boards.

Write to Doug Cameron at [e-mail]

(END) Dow Jones Newswires

September 30, 2019 15:01 ET (19:01 GMT)

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