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Boeing CEO Says Mistake Made On 737 MAX Planes

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Boeing Co.'s (BA) Chief Executive Officer Dennis Muilenburg said the company made a mistake in handling the cockpit warning system on the 737 MAX aircraft.

Muilenburg said this while speaking to reporters on the eve of the 53rd International Paris Air Show from Jun 15 to Jun 23, 2019 at Paris-Le Bourget Airport.

Muilenburg admitted that the aircraft maker should have been more forthcoming and open in their communications with regulators and its customers. He noted that it made communications errors and "inconsistent" communication that he said was "unacceptable."

When the company started delivery of the Max to airlines in 2017, Boeing believed the warning light was operational on all the jets. However, after the Max began flying, Boeing engineers learned that the warning light would work only if a carrier's had purchased a separate cockpit indicator, which most of the most of the MAX customers, including Lion Air and Ethiopian Airlines, did not buy.

Boeing 737 MAX jets have been grounded globally on safety concerns, but CEO expects a return to service later this year. He also apologized to the family of the victims of the two crashes involving 737 MAXs in Ethiopia and Indonesia.

Boeing has been reeling under the impact of two deadly crashes of its 737 Max aircraft within a short span of five months that killed a total of 346 people. The 737 MAX 8 is Boeing's best-selling aircraft.

The 737 MAX jets were grounded following the Ethiopian Airlines crash in the outskirts of Ethiopia's capital city Addis Ababa in March that killed all 157 people on board. It was the 737 Max's second disaster in five months, after 189 people were killed on a Lion Air flight in Indonesia in October last year.

In mid-May, Boeing reported 56 percent lower deliveries for the month, and there were no new orders, amid the ongoing suspension of its top-selling 737 Max jet following the crash. The company received no new orders for the second straight month. It also announced the worst quarterly results in years recently.

The Paris Air Show, a key trade event at which companies announce new orders, is also expected to be a damp squib for the aircraft maker amid the ongoing crisis, with buyers showing reluctance in placing orders until the issues are settled.

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