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President-elect Donald Trump’s nominee to succeed Pete Buttigieg at the Department of Transportation is promising to treat troubled aerospace firm Boeing (BA-0.35%) with “tough love.”
Scott Duffy, a former Wisconsin Congressman turned Fox Business host, made the comment as members of the U.S. Senate committee overseeing transportation quizzed him on his vision for the department. If confirmed, Duffy will lead the department overseeing the U.S.’ roads, airfields, rail system, and shipping ports.
When asked about how he would approach Boeing, Duffy said the company’s problems represent a “national security issue.” He added that he would push the Federal Aviation Administration (FAA) to ensure Boeing works on implementing its safety plan.
“We have to continue to push. There’s been a missing link. Obviously, there’s a lot more work to do,” Duffy said earlier in the hearing when asked by Democratic Sen. Maria Cantwell of Washington about mandatory safety management systems at the planemaker.
Boeing has struggled to regain the trust of investors, customers, and U.S. lawmakers since last January when a door plug fell off an Alaska Airlines-operated (ALK-0.72%) 737 Max 9 mid-flight. The incident led to the resignation of former CEO Dave Calhoun and a $8.3 billion bid to repurchase supplier Spirit AeroSystems (SPR-0.10%), which was spun off in 2005.
In the wake of the incident, the FAA imposed a 38-planes-per-month limit on 737 Max production and put more “boots on the ground” to inspect Boeing facilities. Production of the 737 Max also crawled to a halt during a nearly two-month-long strike by the company’s union-represented machinists as they worked out a new collective bargaining agreement.
That left Boeing with less than half of the deliveries that European rival Airbus (AIR+0.07%) delivered in 2024. Altogether, Boeing delivered 348 commercial aircraft last year, down from 611 deliveries in 2023.
Boeing recently hired someone for a “Human Factors Functional Chief Engineer” position and says it has “significantly reduced defects in 737 fuselage assembly.” A series of whistleblowers last year accused Boeing of ignoring safety and quality concerns with its aircraft.
“What’s needed is a fundamental cultural shift at Boeing that’s oriented around safety and quality above profits,” outgoing FAA Administrator Mike Whitaker wrote on Jan. 2. “That will require sustained effort and commitment from Boeing, and unwavering scrutiny on our part.”
Duffy pledged to work with Congress on a number of other issues, including renovating air traffic control towers, the mandatory retirement age for commercial pilots, and pilot shortages. He also said he would look into “what’s been happening at the FAA with regard to the launches.”
Elon Musk’s SpaceX in September accused the FAA of “lawfare” after the agency proposed fines of $633,009 over unapproved changes to two missions in 2023. Musk, who has sizable influence over the president-elect and a task force that could recommend cutting funding to agencies like the FAA, threatened to sue the FAA for “regulatory overreach.”
When asked by Democratic Sen. Ed Markey of Massachusetts, Duffy said he would not interfere with investigations into Musk’s Tesla (TSLA+7.98%). The National Highway Transportation Safety Administration has a number of open probes into the automaker, including one announced earlier this month.