Skip to content

Boeing CEO: We Know We Have to Re-Earn Trust on 737 MAX

April 24, 2019
5 min read
Boeing Holds First Test Flight For 737 MAX Aircraft
Boeing CEO: We Know We Have to Re-Earn Trust on 737 MAX
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don’t cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.

Boeing executives said returning the company's troubled 737 MAX to the sky is a "top priority" and pledged to commit all the resources needed to make that happen.

The jet was grounded by regulators around the world in March following the second of two deadly crashes that raised safety concerns about the MAX and shook travelers' confidence in the aircraft.

"We know we have some work to do to earn and re-earn the trust of our airline customers and the flying public, in particular," Boeing CEO Dennis Muilenburg said during the company's earnings call.

The comments, which came during the company's quarterly earnings call on Wednesday, are Boeing's most significant yet since the MAX fleet was grounded worldwide. That grounding came shortly after the crash of an Ethiopian 737 Max 8 in March. It was the second Max 8 crash in just five months, coming on the heels of a Lion Air Max 8 crash in October 2018. The crashes killed all 346 passengers and crew on the two flights. (Related: Boeing's First Earnings Report After 737 MAX Grounding Says Little About Its Return)

Crash investigations have put a spotlight on the MAX's new automated "Maneuvering Characteristics Augmentation System" (MCAS). Re-certification of the MAX by the Federal Aviation Administration and other global aviation regulators will likely hinge on software updates for the MCAS system.

"Ever since the Lion Air accident, our top technical experts, engineers and test pilots have been working with regulators from all over the world on a software update that will make the 737 MAX the safest airplane ever to fly," Muilenburg pledged during the earnings call, detailing the company's progress to date.

"Our test pilots have now completed over 135 flights, totaling more than 230 hours of air time with the software update," he added. "We are taking a disciplined approach. We completed our technical flight testing last week and look forward to completing near-term milestones leading to final certification."

But Boeing was unable to give any concrete guidance as to when that certification might be achieved, citing "uncertainty" about the subsequent regulatory approvals that will be needed for the jet to begin flying again.

"The timing for the return to service for the Max will continue to be paced by ongoing work with global regulators and our customers," Muilenburg said.

Daily Newsletter
Reward your inbox with the TPG Daily newsletter
Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG’s experts
Dennis Muilenburg, chairman, president and CEO of the Boeing Company, on December 6, 2018 in Washington, DC. (Photo by Mark Wilson/Getty Images)

For now, Muilenburg expressed "regret" for the inconvenience that the grounding has had on its airline customers and on passengers.

"All of us at Boeing have been deeply affected by the accidents in Indonesia and Ethiopia, beyond anything I can recall in my 34 years at this great company," he said at the start of the call.

In the United States alone, the grounding of the MAX has resulted in hundreds of cancellations among the three carriers that fly the jet here. Southwest has 34 737 MAX 8s in its fleet while American has 24. United has 14 of the larger MAX 9s in its fleet. Each of the airlines has pulled the aircraft out of its schedules through late summer.

At American and Southwest in particular, the grounding of the MAX forced the carriers to juggle their schedules for travel during the busy summer travel season.

"I … want to thank our Boeing (airline) customers and their passengers for enduring the disruption caused by this issue. We deeply regret the impact this has created," Muilenburg said during the call.

He acknowledged Boeing will face challenges winning over a travel public that may now feel skittish about the MAX's safety.

Asked specifically about possibility of travelers who might not want to fly on the MAX, Muilenburg said: "It's certainly an area we're very focused on. This is an area where collaboration with our airline customers is extremely important. The confidence of the flying public is very, very important to us."

Muilenburg said Boeing has been working with its 737 MAX airline customers, "talking with each of them in terms of what they're hearing from their passengers."

One key part of the plan is to win the confidence of pilots, a move that could in turn ease flyers' unease about the MAX.

"That bond between the passenger and the pilot is one that's critical," Muilenburg said.

During the grounding, Muilenburg said pilots from 90% of all carriers that operate 737 MAXes have been brought in for training sessions in flight simulators with the new software.

"The pilot feedback from those sessions has been excellent. It's been a big part of building confidence and how we talk about this going forward. We plan to leverage that pilot voice," he said.

Still, Muilenburg conceded winning back the public's confidence may not be easy.

"We know it will be important to earn – and re-earn – that trust," Muilenburg reiterated during the call. "This will be done jointly with our customers, the pilots, the flight crews, the flight attendants -- everybody that supports these airplanes."

"It will take time."

Featured image by Stephen Brashear

TPG featured card

Rewards rate
4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4XEarn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
5XNew! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
3XEarn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
2XEarn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
1XEarn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
Intro offer
Open Intro bonus
As High As 100,000 points. Find Out Your Offer.
Annual fee
$325
Regular APR
See Pay Over Time APR
Recommended credit
Open Credit score description
Excellent to Good

Pros

  • Valuable dining and food-related credits
  • Flexible rewards with airline and hotel transfer partners
  • Multiple travel and purchase protections
  • No foreign transaction fees
  • Access to Amex Offers for additional savings (enrollment required)

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
  • Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
  • Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
  • Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
  • $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
  • $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
  • New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
  • Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
  • Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
  • Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.