Boeing’s CEO, Dave Calhoun, is set to resign by the end of this year amid a comprehensive management overhaul, prompted by the company’s extensive safety crisis. This crisis originated from a mid-air panel blowout incident on a 737 MAX plane in January. Additionally, Boeing announced the retirement of Stan Deal, the President and CEO of Boeing Commercial Airplanes, with Stephanie Pope stepping in to lead the division. Steve Mollenkopf has been named the new board chair.
Ever since the January 5 incident, where a door plug detached from an Alaska Airlines flight at approximately 16,000 feet, Calhoun has faced mounting pressure. The incident has led to intense regulatory scrutiny from U.S. authorities, who have limited production as the company strives to address safety and quality concerns.
Despite these challenges, experts maintain that Boeing aircraft are safe to fly, with one stating, “I would happily fly any Boeing aircraft.”
“It has been the utmost honor of my life to serve at Boeing,” Calhoun expressed in a letter to the company’s employees. He emphasized the global attention on Boeing and expressed confidence that the company would emerge stronger, with a relentless focus on safety and quality after overcoming the significant hurdles of the past five years.
Recently, a group of U.S. airline CEOs requested meetings with Boeing directors to voice their concerns over the Alaska Airlines 737 MAX 9 incident, signaling an unusual level of frustration with the manufacturer’s ongoing issues and Calhoun’s leadership.
Boeing is currently negotiating the acquisition of its former subsidiary, Spirit AeroSystems, which produced the door plug involved in the Alaska Airlines incident.
The company’s ongoing crisis has caused frustration among airlines already dealing with delivery delays from both Boeing and its competitor, Airbus. Moreover, Boeing has been experiencing higher than anticipated cash burn this quarter.
“For years, we prioritized moving airplanes through the factory over quality, and that approach must change,” stated Boeing CFO Brian West.
In a recent development, Airbus secured orders for 65 jets from two key Asian customers of Boeing, indicating some executives’ concerns about Boeing’s current state.
Boeing shares saw a 2.2% increase in premarket trading following these announcements.
This story is still unfolding. More updates will follow.