Boeing Co’s CEO, Dave Calhoun, is set to resign by the end of the year as part of a significant management overhaul prompted by the ongoing safety crisis stemming from a mid-air panel blowout on a 737 MAX aircraft in January, as per Reuters story.
The planemaker also announced the retirement of Stan Deal, President and CEO of Boeing Commercial Airplanes, with Stephanie Pope taking over leadership of that division. Steve Mollenkopf has been named the new chair of the board.
Since the incident on January 5th, where a door plug detached from an Alaska Airlines-operated MAX 9 jet carrying 171 passengers at approximately 16,000 feet, Calhoun has faced mounting pressure.
Boeing is grappling with intense regulatory scrutiny, leading U.S. authorities to curtail production while the company addresses safety and quality concerns.
Last week, a coalition of U.S. airline CEOs sought meetings with Boeing’s directors to express apprehension over the Alaska Airlines 737 MAX 9 accident, highlighting a rare display of frustration with both the manufacturer’s issues and Calhoun’s leadership, reported The Financial Express.
Additionally, discussions are underway for the company to acquire its former subsidiary, Spirit AeroSystems. This move comes amidst the company’s ongoing crisis, which has exacerbated challenges for airlines grappling with delivery delays from both Boeing and its competitor Airbus. As a result, the planemaker has incurred a higher-than-anticipated cash burn in this quarter.
Brian West, the CFO, remarked last week, “For years, we prioritized the movement of the airplane through the factory over getting it done right, and that’s got to change.”
Recently, Airbus secured orders for 65 jets from two of Boeing’s key Asian customers, potentially reflecting executives’ concerns about Boeing’s situation. Despite the challenges, Boeing’s shares rose by 2.8% in premarket trading following the announcement.
