— This is the script of CNBC's news report for China's CCTV on October 24, 2019, Thursday.
According to Indonesian investigators who briefed the families, mechanical and aircraft design problems and poor regulation were the main reasons for the crash. Although Boeing has paid a lot of compensation to the families of the victims, representatives of the families of the victims questioned why the airlines were not severely punished as it's not a question of one or two lives, it's a question of 189 lives.
Boeing said it was too early to comment on the findings before they were made public. It is reported that the final investigation results of the Indonesian side will be officially released tomorrow.
In addition to the latest findings from Indonesia, Boeing has come under increasing public pressure recently. Last week, us media reported that Boeing pilots had raised internal warnings about the 737MAX's flight control system as early as 2016, but that the warnings had been removed from the pilot's manual in an email to regulators and the system was used in two airline crashes. The information suggests Boeing may have misled the FAA about important airplane safety issues.
The latest disclosures also show that senior Boeing pilots have told colleagues within the company that they felt pressure from management over safety issues to avoid expensive pilot tests of the plane before it was launched. These media reports further deepen the doubts of American public and lawmakers about Boeing's internal management. Under pressure, Boeing made two major changes this month, first removing CEO Dennis Muilenburg as chairman and replacing the chief executive officer of Boeing Commercial Airplanes, which is seen as the most significant management change for Boeing in seven months.
The personnel changes are part of an effort to quell public anger and part of an effort to make the go-around as quickly as possible. For now, Boeing is hoping that the 737 MAX will go-around in the fourth quarter of this year, the seven-month suspension, combined with a related loss of credibility and reduced orders, has taken a toll on Boeing's performance. The company's latest earnings report showed its third-quarter profit more than halved, worse than the market had expected.
We can also see from Boeing stock price that since the grounding of 737MAX in March, the stock price of Boeing has been unable to truly recover, and it shows a further downward trend with the continuous emergence of bad news recently, next, we'll focus on the House transportation committee hearing, Muilenburg, who has been fired as chairman, will appear as CEO of Boeing. It will be his first testimony to congress since the crash, and his speech will give us a chance to learn more about the safety details of the Boeing 737max.