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The senator is drafting new FAA legislation and wants the CEO of Boeing to testify – Investor Bytes
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The senator is drafting new FAA legislation and wants the CEO of Boeing to testify

U.S. Senate Commerce Committee, Maria Cantwell, announced on Thursday that she has invited Boeing CEO Dave Calhoun to testify Commerce.

admin by admin
July 11, 2024
in Stocks
0
CEO

Written by David Shepardson

Boeing CEO Invited to Testify

Reuters, WASHINGTON – The head of the U.S. Senate Commerce Committee, Maria Cantwell, announced on Thursday that she has invited Boeing CEO Dave Calhoun to testify before her committee. This comes as Cantwell drafts legislation aimed at strengthening the Federal Aviation Administration’s (FAA) regulatory authority over airplane manufacturers.

Recent Testimonies and Future Hearings

Calhoun recently testified before a different Senate committee on June 19, but Cantwell anticipates that the departing CEO will also appear before her committee at a later date. She mentioned that this might occur after the National Transportation Safety Board’s investigation hearing on the mid-air incident involving an Alaska Airlines Boeing 737 MAX 9, scheduled for August 6-7.

Strengthening FAA Oversight

“Our task is to determine why the FAA failed to do its duty. What steps must we take to guarantee that the FAA carries out its duties?” stated Cantwell. Both Boeing and the FAA refrained from immediate comments.

Cantwell highlighted the need for a more reliable oversight system, noting that she will soon propose legislation requiring the FAA to implement safety management systems (SMS). “It’s really important to have an oversight system that does work,” she emphasized.

Recent Incidents and FAA Response

FAA Administrator Mike Whitaker admitted to insufficient monitoring during a January 5 incident when a door panel broke out during flight. He told the committee last month that the agency was “too hands-off” in its inspection of Boeing before a mid-air mishap involving a new 737 MAX 9.

The FAA announced in April that it was finalizing regulations mandating SMS installation by aircraft builders, charter and commuter airlines, and aviation tour operators. SMS systems, composed of rules and procedures, are designed to monitor and address potential operational risks. Since 2018, U.S. airlines have been required to provide SMS, and several aerospace firms, including Boeing, have already voluntarily implemented SMS services.

Investing Insights: Is Boeing Facing New Challenges?

Many investors are hesitant to increase their stock investments in 2024 due to rising valuations. Opportunities in the stock market are always present, but it seems harder to find them today than it was a year ago.

Finding High-Potential Prospects

Not sure what to buy next? A great place to start looking for fresh, high-potential prospects is the portfolios that have performed the best this year.

The six model portfolios known as Investing.com’s ProPicks are designed to help investors find the best stocks to purchase at this time. For instance, this year alone, ProPicks discovered 9 undervalued stocks that increased by more than 25%.

Potential Market Impacts

What are the potential impacts of the upcoming legislation on Boeing and other aviation companies? Stay tuned to find out how these developments might affect Boeing’s stock and broader market trends.

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