Boeing (BA) - Get Report chairman Dave Calhoun defended CEO Dennis Muilenburg in a CNBC interview and insisted production rates for the troubled 737 MAX won't be cut despite potential delays to its planned return to service.
Speaking with CNBC's Phil Lebeau, Calhoun said Muilenberg had "done everything right" and "has our confidence" despite criticism from investors and lawmakers for his handling of the crisis that followed two fatal crashes of the 737 MAX, which investigators has linked to failures of the plane's MCAS flight software system. Calhoun also said he doesn't see any changes to production rates for the MAX, which Boeing indicated last month would rise from 42 planes per months to 57 planes per month by the end of 2020, reported TheStreet's Martin Baccardax.
"From the vantage point of our board, Dennis has done everything right," Calhoun told CNBC. "Remember, Dennis didn't create this problem. From the beginning, he knew that MCAS could and should have been done better and he has led a program to rewrite MCAS to alleviate all of those conditions that ultimately beset two unfortunate crews and the families and victims."
Jim Cramer weighed in on the interview, saying that he believes that Boeing investors should 'feel better' about Boeing after the interview.
Over on Real Money, contributor Mark Sebastian weighed in on how he would approach Boeing, writing, "As the plane heads toward final approval to go back in the air, the move Boeing could make is to hire someone in the C-suite or just below that ensures this type of behavior never happens again. Alternatively, they could fire and replace someone in the C-suite who is hired to do the same. Either way, it changes the perception and likely makes passengers and airlines much more willing to hop on board."
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