Dennis Muilenburg: Boeing CEO to stand down as crisis deepens after fatal 737 Max crashes
Caps a year of crisis for Boeing
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Your support makes all the difference.Boeing CEO Dennis Muilenburg has resigned with immediate effect, following two fatal 737 Max crashes.
Current Boeing chairman David Calhoun will replace Mr Muilenburg as chief executive officer and president from 13 January 2020, while board member Lawrence Kellner will become chairman, the planemaker announced today.
Shares jumped 2.7 per cent following the news.
Boeing is currently mired in a crisis over the 737 Max jet after two fatal crashes in the past 14 months.
Last week, Boeing announced it would suspend production of the 737 Max, the aircraft involved in two tragedies which cost a total of 346 lives.
The plane was grounded worldwide in March 2019, days after an Ethiopian Airlines Boeing 737 Max crashed in similar circumstances to a Lion Air aircraft the previous October.
Since the grounding, the US aircraft manufacturer has continued to build its best-selling plane at a slightly reduced rate. Boeing has more than 4,500 of the twin jets on order.
For the past nine months, Boeing has been seeking to fix anti-stall software known as the Maneuvering Characteristics Augmentation System (MCAS). In both fatal crashes, the system forced the nose of the aircraft down despite the pilots’ efforts to overcome it.
In October, Mr Muilenburg was quizzed at the US Congress about the two fatal crashes.
Boeing said that a “change in leadership was necessary to restore confidence in the company moving forward, as it works to repair relationships with regulators, customers, and all other stakeholders”.
With new leadership, the US planemaker said it would make a “renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers”.
“On behalf of the entire board of directors, I am pleased that Dave has agreed to lead Boeing at this critical juncture,” Mr Kellner said.
He added: ”Dave has deep industry experience and a proven track record of strong leadership, and he recognises the challenges we must confront. The board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company.”
Mr Calhoun said, “I strongly believe in the future of Boeing and the 737 Max. I am honoured to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation.”
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