Shares of Boeing were down 1.1% to $378.84.
President and CEO Dennis Muilenburg said the new group "will unify safety-related responsibilities currently managed by teams across several Boeing business and operating units."
The move followed recommendations from Boeing's board that resulted from a five-month review of the company's policies and processes for the design and development of its airplanes by a specially appointed committee after two fatal crashes involving the company's troubled 737 MAX.
The 737 MAX has been grounded worldwide following the deadly accidents in March 2019 and November 2018 that killed 346 passengers.
Boeing announced the changes on the same day The Wall Street Journal reported that engineers working on a flight-control system for the 737 MAX omitted key safeguards that had been included in an earlier version of the same system used on a military tanker jet.
Last week Boeing said it would establish the Aerospace Safety Committee to be led by retired Adm. Edmund Giambastiani Jr., former vice chairman of the Joint Chief's of Staff and Boeing director since 2009.
The new team will be led by vice president of product and services safety, Beth Pasztor, who will report jointly to the aerospace safety committee and Greg Hyslop, Boeing's chief engineer and senior vice president of engineering, test and technology.
Pasztor is a 34-year Boeing veteran, who was previously vice president of safety, security and compliance for Boeing Commercial Airplanes.
The organization is responsible for reviewing all aspects of product safety, including investigating cases of undue pressure and anonymous product and service safety concerns raised by employees.
Pasztor also will oversee the company's accident investigation team and safety review boards, Boeing said, as well as the enterprise organization designation authorization - the company's engineering and technical experts who represent the Federal Aviation Administration in airplane certification activities.
Boeing said it is also was establishing a design requirements program; enhancing the continued operation safety program; partnering with commercial and defense customers, and other stakeholders, to ensure flight deck designs continue to anticipate the needs of future pilot populations; and expanding the role and reach of the company's safety promotion center.
Boeing noted that software engineers have run 390,000 flight hours on the 737 MAX, the equivalent of flying 45 years.
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