Boeing CEO stepping down amid 737 Max crisis.

0
33

Boeing CEO Dave Calhoun will step down by the end of 2024 as part of a significant management overhaul at the troubled aerospace giant. Larry Kellner, the current chairman, will not seek reelection in May and will be replaced by Steve Mollenkopf, a former CEO of Qualcomm. Stan Deal, president and CEO of Boeing’s commercial airplanes unit, is leaving the company immediately, with Stephanie Pope taking over his role after serving as Boeing’s chief operating officer.

These changes come amid increasing pressure from airlines and regulators following numerous quality and manufacturing issues with Boeing planes. Scrutiny intensified after an incident involving a Boeing 737 Max on an Alaska Airlines flight in January.

Calhoun emphasized the need for transparency and a renewed commitment to safety and quality. He stated that Boeing must address its challenges head-on and make necessary changes to improve operations.

Calhoun’s resignation is a personal decision, and he highlighted the importance of addressing production issues and allowing the supply chain to catch up. He took over as CEO in January 2020 after the removal of the previous CEO, Dennis Muilenburg, in the aftermath of two fatal 737 Max crashes.

Boeing has faced delays in aircraft deliveries due to production problems, leading to dissatisfaction among airline customers. The FAA has increased oversight, and Boeing is prohibited from increasing 737 production until quality control concerns are addressed.

The management changes were met with approval from some airline CEOs, including Ryanair’s Michael O’Leary, who praised the move but expressed concerns about Boeing’s manufacturing challenges.

Boeing’s stock rose slightly following the announcements, although it has experienced a significant decline this year.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Enable Google Transliteration.(To type in English, press Ctrl+g)