Boeing, the aerospace giant, is undergoing a significant management shake-up as CEO Dave Calhoun announces his departure at the end of 2024. This move, alongside the resignation of chairman Larry Kellner and the departure of Stan Deal, president and CEO of Boeing Commercial Airplanes, reflects a broader effort to address concerns regarding quality and manufacturing flaws on Boeing planes.
The management shake-up comes amidst increasing pressure from airlines and regulators for major reforms at Boeing. Scrutiny intensified following a January 5 incident involving an Alaska Airlines flight, where a door plug blew out of a nearly new Boeing 737 Max 9 aircraft. Airline CEOs have been vocal about their concerns regarding manufacturing quality controls and production issues with the 737 Max planes.
Calhoun’s commitment to safety
Boeing has experienced problems with its airplanes for more than five years. This includes two fatal crashes of the 737 Max in 2018 and 2019 that killed 346 people. Most recently, a door plug blew out of the side of an Alaska Airlines 737 Max in January, leaving a hole in the side of the plane. Those incidents have raised concerns for safety, causing Boeing over $31 billion in cumulative losses.
In a message to employees, Calhoun acknowledged the significance of the Alaska Airlines incident. He also emphasized Boeing’s commitment to safety and quality. He expressed confidence in Boeing’s ability to overcome challenges and emerge as a stronger company. Moreover, he highlighted the importance of prioritizing transparency and humility.
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Calhoun’s tenure as CEO began in early 2020, succeeding Dennis Muilenburg, who was ousted for his handling of the aftermath of two deadly 737 Max crashes. Since then, Calhoun has been working to address Boeing’s quality struggles and restore confidence among investors, airline customers, and the general public.
Boeing’s stock rose more than 3 percent in premarket trading following Calhoun’s announcement, indicating investor optimism about the leadership changes. The company remains focused on resolving its quality issues and regaining trust within the aviation industry.
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