Boeing CEO Dennis Muilenburg resigns

The Boeing Company, which has been reeling under the impact of the bad decisions taken concerning the Boeing 737 MAX, which eventually led to two plane crashes due to the newly installed MCAS software, has shaken up the top again, after more than eight months after the second incident. Three hundred forty-six people were dead in both events.

Boeing announced today that its Board of Directors has named current Chairman, David L. Calhoun, as Chief Executive Officer and President, effective January 13, 2020. Mr Calhoun will remain a member of the Board. Besides, Board member Lawrence W. Kellner will become non-executive Chairman of the Board immediately.

Boeing also announced that Dennis A. Muilenburg has resigned from his positions as Chief Executive Officer and Board director effective immediately. Boeing Chief Financial Officer Greg Smith will serve as interim CEO during the brief transition period, while Mr Calhoun exits his non-Boeing commitments.

The Board of Directors decided 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.

Under the Company’s new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers.

The grounding of Boeing 737 MAX aircraft since March 2019 has stalled deliveries, leading to about 400 aircraft piled up across factories, and other delivered aircraft not being operated at customer sites. The grounding has cost billions of dollars to the aircraft manufacturer so far, according to various estimates. Boeing initially let go CEO of Commercial Airplanes Kevin McAllister, but there was growing frustration within the FAA about the way the CEO of Boeing had been making statements. Just last week, Boeing announced the suspension of 737 MAX Assembly for the foreseen future.

What do you make of the latest move from Boeing? Do you think this will move the needle on the change Boeing needs to see?

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