Boeing will cut production of its troubled 737 MAX airliner this month, underscoring the growing financial risk it faces the longer that its best-selling plane remains grounded after two deadly crashes.
Boeing said it would not reduce jobs at the new production rate and will work to minimize the financial impact.
This is the first time Boeing has publicly acknowledged that the malfunctioning MCAS led to the accidents.
He also assured that when the MAX returns to the skies with the software changes to the MCAS function, it would be among the safest airplanes ever to fly.
The crash of a Lion Air plane in Indonesia last October that killed all 189 people on board and the crash in Ethiopia have left the world's largest planemaker in crisis as its top-selling jetliner is grounded worldwide.
The release of the report came after the US Federal Aviation Administration (FAA) said on Wednesday it is forming an global team to review the safety of the now-grounded Boeing 737 Max that will be headed by a formal top US safety official. In both cases, all crew and passengers on board were killed.
Contrary to the report of preliminary investigation by the Ethiopian authority, excess speed by the pilot and hasty command have been identified as possible factors responsible for the crash of Ethiopian Boeing Max 737 jet.
The report found that the crew onboard did their best to follow emergency procedures, but recommended that Boeing review the flight control system of the plane model.
Southwest Airlines Co and American Airlines Group Inc, the two largest USA operators of the MAX with 34 and 24 jets respectively and dozens more on order, each said on Thursday that they continued to await guidance from US regulators and Boeing on when the MAX could resume flying. The company expects to submit the planned fix to the FAA for approval "in the coming weeks", reflecting a delay from its earlier timeline.
Boeing president added with the release of the preliminary report of the Ethiopian Airlines Flight 302 accident investigation, it was apparent that in both flights, the MCAS was activated in response to erroneous angle of attack information.
Manufacturers avoid halting and then resuming production as this disrupts supply chains and can cause industrial snags. But amid a chorus of confusing alarms, they also made a critical oversight as they struggled for control, according to three pilots with experience in accident investigations: They left the engines set almost to maximum.
In total, the anti-stall system pushed the nose down four times during the six minutes of the flight and the pilots could not regain control. Since the Lion Air crash, the manufacturer has had teams of engineers and technical experts working with the U.S.
Ethiopian Airlines plane crash wreckage at the site where the plane dived into the ground.
"Everyone can talk about it from a desk, but when you see it happening it's another thing", said Dennis Tajer, a spokesman for the Allied Pilots Association at American Airlines. For reasons that haven't been explained, they didn't try to also trim the plane using switches on their control yokes.