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The CEO of Boeing, Dave Calhoun, is scheduled to resign by the conclusion of 2024 as a component of a comprehensive restructuring of the troubled aerospace corporation.
The resignation of Larry Kellner, the chairman of the board, signifies his decision not to seek reelection at Boeing’s annual meeting in May. According to Boeing, Steve Mollenkopf, who has served as a director at Boeing since 2020, will assume the role of chair and assume leadership of the board in the selection process for a new CEO.
Stanley Deal, the President and CEO of Boeing Commercial Airplanes, is resigning from his position at the business, with his departure taking effect immediately. Stephanie Pope, who formerly held the position of Boeing Global Services, has just assumed the role of Boeing’s chief operating officer.
The departures occur in response to mounting demands from airlines and authorities for significant reforms inside the corporation after a series of quality and production deficiencies were observed in Boeing aircraft. The level of scrutiny escalated after an incident on January 5th, whereby a door plug detonated from a recently manufactured Boeing 737 Max aircraft, about 9 minutes into an Alaska Airlines flight.
Calhoun communicated to staff on Monday that the Alaska Airlines Flight 1282 incident served as a significant turning point for Boeing. It is imperative that we persist in addressing this incident with a sense of modesty and unwavering openness. It is essential to foster a comprehensive dedication to safety and quality across all facets of our organization.
“The global attention is focused on us, and I am confident that we will emerge from this period as an improved organization, leveraging the knowledge we gained while collaborating to reconstruct Boeing in recent years,” he said.
Calhoun assumed the position of CEO in late 2019 and assumed leadership at Boeing in early 2020 after the removal of Dennis Muilenburg, the former CEO, due to his management of the consequences arising from two fatal 737 Max accidents.
For an extended period, Calhoun has made assurances to investors, airline customers, and the general public on Boeing’s efforts to effectively manage its many quality challenges. Following the Alaska Airlines tragedy, the Federal Aviation Administration has intensified its supervision of Boeing. Agency Administrator Mike Whitaker has said that Boeing would be prohibited from expanding 737 manufacturing until the FAA is satisfied with the company’s quality control measures.
The manufacturing issues faced by Boeing have resulted in delays in the delivery of new aircraft to clients and have impeded the company’s expansion strategies. The CEOs of major clients of the firm, such as United Airlines, Southwest Airlines, and American Airlines, have openly expressed their dissatisfaction with the delays.
Earlier this month, Scott Kirby, the CEO of United, encouraged Boeing to cease production of Max 10 jets that have not yet been authorized for the airline. This recommendation was based on the uncertainty surrounding the FAA’s approval of these aircraft for flight.
Recently, airline CEOs initiated meetings with Boeing officials to express their dissatisfaction with the absence of manufacturing quality standards and the production of 737 Max aircraft falling short of expectations. Kellner and one or more additional board members were scheduled to attend the meetings.
During a recent industry conference, Brian West, the Chief Financial Officer of Boeing, expressed concerns about the projected cash outflow due to the constrained manufacturing of the 737 Max aircraft.
Following Calhoun’s statement, Boeing’s shares saw a surge of almost 2% in early trade on Monday. As of Friday’s closing, the stock has seen a decline of 27% this year.
