So representative babbin. Yes, sir. Mr. Chairman, thank you very much. Id like to join the others in acknowledging those in attendance here today who lost loved ones in the accidents and our sincerest condolences to you and thank you for being here today. In the interest of time, id like to get right to it. Instead of directing my questions to one of you specifically. Id like to address these to both of you and let you decide who is best fit to answer. I think there is a feeling out there that after the lion air crash in indonesia boeing sat back and did nothing in terms of addressing the causes of the accident and since the second crash in ethiopia, weve heard a lot from boeing and the rest of the industry about how the information gleaned from these tragic accidents helped to ensure that they are not repeated. With that in mind, what did boeing do after the lion air crash to ensure that those circumstances were not repeated and do you have any specific examples of Lessons Learned that you can share with all of us that have positively impacted the entire commercial aviation arena, beyond just boeing. If you can give that to me as quickly as possible. Ill ask mr. Hamill to answer that and he referenced a concern that had been brought up by an employee. I responded to a question about whether the Vice President of the gm of the program had contacted me and i said yes and that was incorrect. My initial reception was direct from the employee, and i just wanted to clarify that to make sure it was right. We did follow up and i referenced several actions that were ongoing in our factory concurrently, and the letter from the employee addressed several of those topic areas and i just wanted to clarify that was separate from the actions that we were taking. Thank you. Just very, very quickly, mr. Hamilton because i have other things i want to say. Certainly, in the so in my previous role i led our Investigation Team including one that the chairman announced earlier and ive had corrective actions and we convened a group of experts from around the company and started postulating on what possibly could have happened given the limited data that was available. We quickly identified that this mcass activation could have been a scenario and we started running that through our labs and running scenario planning and once the flight data recorder came up later in the week and then verified what we had, we started working on the software change immediately to work on that. We separately convened the safety board and determined that was not enough, just the software change to mitigate the risk and we determined that while the crew and the captain of lion air was trimming out the airplane as it was getting mcass when he was handing out the control and it didnt quite follow the assumptions that they would base the design on, so we need to put an operation manual out to remind crews. Let me interrupt you because i have other things that i want to have, but i think ill just submit those for the record, but i do want to use the remaining time to be perfectly clear about something. As unfortunate as these tragedies are the systems will sometimes fail and well continue to learn from them until they dont fail. In the meantime, we need highly trained humans in the loop to make judgment calls until things go awry and that means ensuring that the operators of the systems know how to triage problems in order to put a plane safely on the ground in the case of an emergency. The day before the lion air crash when the identical problem occurred an offduty pilot riding in the cockpit guided the crew to disable the mcass and save the airplane. Let me be clear. This plane absolutely should not have been in the air on october the 29th in 2018, another human error, but this is an indicator that a welltrained crew potentially could have averted this disaster an all of that to say that athere are plenty of things that boeing should have done better and sorry to say that there are those who claim that boeings decisions are made only with the almighty dollar in mind. Are we under the illusion that boeing makes money when tragedies like these occur and hard to imagine that boeing would suppress information that would make the public safer and their product ultimately better. We should be using these opportunities to seek out solutions and not trying to hang blame on a country that has as much desire to keep the passengers safe as we do. Lets not forget that 5 Million People fly on boeing planes every single day and we must be careful not to erode leadership when it comes to aviation. America is unquestionably the Gold Standard when it comes to commercial aviation and boeing has played a major role in getting us to that point. And just for the record, i served no parochial interest in my district, 36 in the state of texas, so i willyearold back and i would submit further questions then. Thank you, mr. Chairman. Since you just made a clarification about your response to the representative, i just want to get this separate. You heard directly from this individual. The individual who four months before lion air said that he was hesitant about putting his family on the plane after he was complaining about the schedule and he corresponded before correctly. It was via a letter that i received and im not sure, that it was physical. You said you didnt ruse protection and despite what he raised, youre concerned about your supply chain. Just reflect on this for a second. You talked about your upbringing, modest upbring, but now youre a highly paid ceo of an instushgsz the boeing company. As mr. Cohen pointed out and i pointed out in the beginning and after lion air you got a 16 million bonus and people are being held accountable. This gentleman quit the company after 30 years in the industry because his concerns werent being addressed, but youre leading us to believe that they were significantly addressed. Im sorry, i just dont buy that and with that i recognize mr. Mitchell. [ inaudible ] sorry. No need. You were carrying on a line of questions that id like it on pursue. Mr. Mullenberg, youre the chief executive officer, do you set the standards and do you set the purpose and goal for the company . Congressman, thats part of my responsibility . The answer is y you do those things . Yes, sir. Good. As the chairman just said did you receive a 30 million ren remuneration from the company in 2013. Stock . Congressman, i recall my salary was roughly 23 million that year. Then i suppose this is incorrect. It came from the seattle times. It says 30 million. You have at least three employees that have left the company and Adam Dickinson and also a whistleblower in charlotte. All of which said the companys goal is profit over quality. Are they correct . Those comments are not accurate. And what is the companys standard for quality . Over profit . Our core values at the company and the top of the list is safety, quality and integrity. I see. So in 2016 when boeing started asking for time and cost reductions as part of the managers performance evaluation, and the manager who said that, mr. Dickinson, is that correct . That is not what happened in 2016 . Congressman, im not familiar with the specific communication, but it is true that we insensitivize our team to perform from a cost and schedule standpoint, as well. Is that contrary to quality and safety . Congressman, no, its not. So which is most important . Most important, clearly safety comes first. And we have the the 737 max to prove that that is incorrect. Congressman, i disagree with that premise respectfully. Its very true that we operate in a competitive environment around the world. Were the last remaining big commercial airplane builder in the u. S. And it is a competitive environment. And you were the first to lose two airplanes as a result of a problem with your quality and airplane. Is that correct . As i said, safety and quality are Top Priorities and safety and quality go hand in hand with operational excellence. Would you like to talk to me about the quality of the kc46 . Would you like to go into detail about the abject lack of quality of an airplane that the government wants to purchase for you the kc46 . You of twant to talk about the . You want to talk about the inability to keep cargo in place . Shall we talk about the quality there . Or would you like to talk about the quality of the dream liner . Congressman. Youve got a problem. We have improvements to maka quality. You have a systemic problem in your company. You are reaching for profit which, incidentally, was very, very significant in 2018, was it not . 15 billion in cash plus a Significant Impact on the profit. Youre not driving quality and youre sure as heck not driving safety. I just gave you three examples. Congressman, i disagree with your premise. Our Business Model is safe airplanes and thats the only sustainable Business Model for boeing. We work in a longcycle business. It takes five to ten years to bring a new product to the market. When those products come to market theyre typically used by our customers for decades, both military and commercial customers. The only sustainable Business Model for our company is safety. Thats what were built on. Thats why weve lasted 103 years, and thats why were the only u. S. Builder of big commercial u. S. Airplanes remaining today. Three of your principal product lines, the 737 max, the kc46, and the dreamliner all have quality issues. They certainly the case of the max they have a serious safety issue, and i would pause at the reality that you are pushing profits over quality and safety and those three examples of three of your main product lines and i see im out of time so i have to yield back. I thank the gentleman, and now i would turn to mr. Mitchell. Thank you, mr. Chair. Were talking about 346 lives here and we refer to it as an accident its not an accident. It reflects a failure. It reflects multiple failures. I think we need to stop talking about accidents. Its a tragedy. Accidents are mistakes that people make as a bad choice and its a fender bender. This is far from that. Safety begins with design. Thats where it starts. I met with the faa and the safety people there, and ive met with your folks as youre aware. The word assume was used way too often for my comfort level. I was ceo of a business much smaller than yours. We didnt build aircraft. Were makeriing assumptions and wont use it here in the public venue. You talk about changing your culture and they manipulate a sumpses. The worst thing in the world are assumptions. You talked about restructuring your team and who will test assumptions in your organization given that assumptions kill people . Congressman, thats a responsibility that i count on with what i call our engineering function. As weve recently announced, weve realigned all of our engineers to report to the chief engineer. Let me stop you because time is limited, unless you have a separate group doing that independently outside of the other decision making, literally theres pollution there and impact on that. Theyve got to do it totally independently. How are you doing that . Internally, typically in all of our design programs, we bring in external experts and well bring in senior advisory groups and sometimes well tap a team from boeing to call a nonadvocate review to get crosschecked so we use resources from a number of different areas. I would ask, if you would, that for the sake of the committee here that you explain how it is that youre going to go forward with testing your assumptions, in light of where we are at now, but we have to look forward based upon the experience that you have, and i would say that the mcass will operate in the background. Well, it certainly didnt when things went awry and then the circumstance we had it wasnt in the background and it was pretty much in the foreground. The 2014 slid, common the commonality between max and the x. The m cass wasnt in theed training model so it doesnt matter. The focus was trying to call it a stable irer and how the pilot will repovrnd spond. Wasnt in the manual and was it covered prayer to the lion air crash in they didnt know it was there, how do you train on something that you dont know its there that hasnt said up front heres whats going to happen under these circumstances. How do you train that . You dont. One of the thing weise learn side zee to provide more m cass documentation which were doing and the intend was that the training for m cass was to train on the runaway stabilizer as opposed to training on diagnosing the system itself, but we have learned that we need to provide more information on m cass and thats what were doing going forward. Let me in the last 50 seconds or so, im not operating on the basis and im not that profit is somehow evil and i was the ceo of a not for Profit Company and yebl that incentivized boeing on pressures and i dont care about your or any of your management teams bonuses. What you caompensate is up to your board and it was a much Smaller Company that i was a ceo of, but if i was ceo of a company that i led into, that i was responsible for that was mine, and in this set of circumstances, and i owned 38 of the company, i would be submitting my resignation to the board of directors because im responsible for it ultimately. I have one more question and its a simple yesterday or no. Have you submitted your resignation to your board of directors . Congressman, i have not. Im responsible. These two accidents happened on my watch. I feel responsible to see this through. As i mentioned earlier, i grew up on a farm in iowa. My dad taught me that you dont run away from challenges and this is a challenging situation. My responsibility is to stick to it and to help my team work through and to get boeing in the future and i feel a keen sense of responsibility to do that, and i am confident that thats what well do as a company. Thank you. Mr. Johnson would be next. Thank you, mr. Chairman. I would like to extend my heartfelt condolences to the families a effected by these tw tragedies. Looking at the faces of the deceased, their lively, smiling faces, im deeply saddened that they are no longer with you, but my sadness can in no way match the grief that you feel. Thank you all for being here. You would say the crews of lion air 610 and Ethiopian Airlines 302 were faced with multiple alerts during the accident sequences, correct . Congressman, my understanding of the accidents is thats correct. And you would agree that they received airspeed disagree indicator, correct . Congressman, i believe from what we understand they had airspeed disagree as well as other flight deck alerts occurring. Altitude disagree indications . Correct . That and also, i believe i believe stick shaker alerts, as well. Uhhuh. And you would agree that they had received various other cautions and warnings during that period, correct . Congressman, thats my understanding, yes. The National Transportation safety board reported in october in reference to these tragedies that, quote, multiple alerts and indications can increase pilots workload, end quote. Do you agree with that statement . Congressman, yes. That statement makes sense, yes. And the ntsb further observed that, quote, industry, perts generally recognize that an aircraft system should be designed such that the consequences of any human error are limited, end quote. Do you agree with that statement, as well . Congressman, i believe thats consistent with our design approaches. Yeah. And the ntsb went on to note is to develop airplanes and procedures that are less likely to result in operator error and are more tolerant of operator errors when they do occur, end quote. Do you agree with that statement . Thats one area that we learned in both of these accidents is that is an area that we need to review the longstanding principles and guidelines. I believe thats an important area for us to address. So you would agree that in terms of the design of the 737 max and the 730 maxs mcass and sensing systems were not designed such that the consequences of human error were limited. You would agree with that, correct . Congressman, on the mcass, as we said, weve identified areas where we need to improve and its related to pilot workload. Thats one of them, correct . The sequence that was not designed to accommodate. Let me put it like this. In other words, you would agree that the 737 maxs mcass and angle of attack sensing systems were not designed such that the c consequences of any human error were limited. You would have to agree with that statement. Congressman, again, from that standpoint, we designed the system to a longstanding Industry Standards but it was this one was not designed so as to accommodate the possibility of human error in terms of dealing with the mcass system, but let me move on. You in court filings, you intend to stop all litigation in the United States and ensure that as far as the indonesian crash and confined in indonesia and not in the court system of the United States, correct . Congressman, i cant comment on that. Im just not familiar with the details of that. So are you here to say that your company would not take efforts to protect itself from the u. S. Court system in so far as the victims of these air crashes are concerned . Congressman, if i could take that question ill get back to you. I dont know the answer. Well, you are attempting to settle things out of court with a 100 million Fund Available for claimants, correct . Congressman, i believe the 100 million fund that youre referring to is one that we recently set up thats completely separate from any Legal Proceedings and is being administered by mr. Feinberg. That is intended to be completely separate from any legal proceed little with the idea that we can more quickly assist the families and communities. Participation in that system cause the agrieved individuals familys next of kin to waive their ability to go to court later . Congressman, the 100 million fund that youre referring to if im understanding that youre referring to is completely separate. The one participating and the 100 million fund would not bar them from litigation thereafter . That is correct. They are completely separate. Thank you. I will say, mr. Nuremberg, im incredulous that you dont know whether or not your company is attempting to avoid the u. S. Courts for liability regarding lion air. Seriously . You know nothing if thats a fact . That would be a darn big thing. U. S. Court, we go through this with the maritime industry where mariners on these foreign flag ships arent allowed access to u. S. Courts and youre telling me that youre not aware of your legal strategy regarding indonesia . Yo