Boeing CEO Says Company Needs To Acknowledge 'Mistake' As 737 Max 9s Remain Grounded

Boeing Company (NYSE: BA) CEO David Calhoun on Tuesday told employees the company will acknowledge its mistake and act with complete transparency as investigations into Friday’s incident involving a Boeing 737 Max 9 proceed.

What Happened: According to a Wall Street Journal report, Boeing is owning the "mistake" that led to a door-plug failure incident on a recent Alaska Airlines flight. 

Calhoun reportedly addressed employees on Tuesday, noting that Boeing engineers are examining the recovered door plug in an effort to identify possible causes of the incident. 

“We are gonna approach this—No. 1—acknowledging our mistake. We’re gonna approach it with 100% and complete transparency every step of the way,” Calhoun said.

The Federal Aviation Administration (FAA) has grounded all Boeing 737 Max 9 jets while investigations are underway, and both Alaska Airlines and United Airlines have reported finding loose parts after conducting initial inspections on their Boeing fleets. 

Calhoun also addressed the potential for airlines to lose confidence in Boeing and vowed to regain trust through full transparency and corporate responsibility. 

“Moments like this shake them to the bone, just like it shook me,” Calhoun said.

“They have confidence in all of us—they do—and they will again.”

Related Link: BofA's Mixed Airline Ratings: Upbeat On United's Growth, Cautious On JetBlue's Challenges, Bullish On Delta's Cash Flow

BA Price Action: According to data from Benzinga Pro, Boeing shares closed Tuesday's session down 1.41% at $225.76. Boeing shares are now down more than 10% over the last week.

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