In a major shakeup at Boeing, CEO Dave Calhoun is set to step down by the end of the year, marking a significant change in leadership due to the planemaker’s extensive safety crisis. This crisis was triggered by a mid-air incident in January, where a panel blew out on a 737 MAX aircraft.
As part of the restructuring, Stan Deal, President and CEO of Boeing Commercial Airplanes, will retire, with Stephanie Pope taking over that division. Additionally, Steve Mollenkopf has been named the new chair of the board.
This leadership overhaul comes after weeks of turbulence for Boeing, following the mid-air incident involving an Alaska Airlines-operated MAX 9 jet. The fallout has created a serious safety and reputational crisis for the iconic aircraft manufacturer, resulting in a 25% drop in Boeing shares since the incident.
Boeing is under intense regulatory scrutiny, and U.S. authorities have scaled back production as the company works to address safety and quality concerns. Discussions are underway for Boeing to acquire Spirit AeroSystems, its former subsidiary, to gain better control over its supply chain.
Last week, a group of U.S. airline CEOs requested meetings with Boeing directors without Calhoun present, expressing frustration over the Alaska Airlines accident and the company’s ongoing challenges.
Calhoun, who took on the CEO role in January 2020, faced the daunting task of navigating Boeing through multiple crises stemming from the MAX crashes in 2018 and 2019. Despite his efforts, production delays have persisted, prompting a cautious approach.
Dave Calhoun became the boss at Boeing in early 2020, replacing the old boss, Dennis Muilenburg. Muilenburg was removed because of how he dealt with the aftermath of two deadly crashes involving the 737 Max planes.
Since then, Calhoun has been telling investors, airlines, and everyone else that Boeing will fix its many quality problems. The Federal Aviation Administration, which makes sure planes are safe to fly, is keeping a closer eye on Boeing. The FAA boss, Mike Whitaker, said after the Alaska Airlines crash that Boeing can’t make more 737 planes until they’re sure Boeing can make them safely.
Calhoun told CNBC in an interview on Monday that the decision to resign was “100%” his own.
Boeing’s crisis has not only affected its own operations but has also caused headaches for airlines dealing with delivery delays from both Boeing and its competitor, Airbus. The company has been burning through more cash than anticipated, highlighting the urgent need for improvements in manufacturing processes.