Please ensure Javascript is enabled for purposes of website accessibility

Prime Minister of Yemen’s Houthi Government Killed in Israeli Strike

3 days ago

Texas Gov. Greg Abbott Signs Law Redrawing Congressional Maps

4 days ago

US Air Force will Offer Military Funeral Honors to Slain Capitol Rioter

4 days ago

US Republican Senator Joni Ernst Will Not Run for Re-Election, CBS News Reports

4 days ago

Wall Street Falls as Dell, Nvidia Drive Tech Losses

4 days ago

US Denies Visas to Palestinian Officials Ahead of UN General Assembly

4 days ago

Minneapolis Children Revealed Courage, Absorbed Fear During Church Shooting

5 days ago

Ford Recalls Nearly 500,000 Vehicles Over Brake Fluid Leak

5 days ago

Fresno-Bound Passenger Says Delta Attendant Slapped Him, Seeks $20M

5 days ago
After Deadly Crashes of Marquee Aircraft, Boeing CEO Is Out
gvw_ap_news
By Associated Press
Published 6 years ago on
December 23, 2019

Share

Boeing’s CEO is stepping down with no end in sight for a crisis that has enveloped the manufacturer and its marquee aircraft, the Max 737.

“This is something that we have been asking and struggling for quite some time. The CEO reluctantly and deliberately kept the aircraft in service after the Lion Air crash. The Ethiopian Airlines crash was a preventable accident.” — Ababu Amha, who lost his wife, an flight attendant, in the second crash involving an Ethiopian Airlines aircraft
The Chicago manufacturer said Monday that Dennis Muilenburg will depart immediately. The board’s current chairman David Calhoun will officially take over on January 13.
The Max was grounded worldwide after two crashes — one in October 2018 off the cost of Indonesia and another in March 2019 in Ethiopia — which killed a combined total of 346 people. The company’s board said a change in leadership is needed to restore confidence in the company as it works to repair relationships with regulators and stakeholders.
“This is something that we have been asking and struggling for quite some time,” said Ababu Amha, who lost his wife, an flight attendant, in the second crash involving an Ethiopian Airlines aircraft. “The CEO reluctantly and deliberately kept the aircraft in service after the Lion Air crash. The Ethiopian Airlines crash was a preventable accident.”
The resignation, however, is not enough, Amha said. “They should further be held accountable for their actions because what they did was a crime.”
The Max is crucial to Boeing and it’s been unable to get approval from regulators to put the plane back in the air. Sales at Airbus, Boeing’s top rival, surged 28% during the first half of the year.
Investigators say that in both crashes, a faulty sensor caused the plane’s MCAS system to push the nose of the plane down and pilots were unable to regain control.

Boeing Said That Production of the Max Would Be Wound Down in January

Boeing declined to make Calhoun or other executives available Monday. An email to employees said Greg Smith will serve as interim CEO. “This has obviously been a difficult time for our company, and our people have pulled together in extraordinary ways,” Smith said in the email.
Earlier this month, the head of the Federal Aviation Administration expressed concern that Boeing was pushing for an unrealistically quick return of the grounded 737 Max.
Calhoun says he strongly believes in the future of Boeing and the 737 Max.
Boeing said last week that production of the Max would be wound down in January. The shutdown will likely ripple through Boeing’s vast network of 900 companies that make engines, bodies and other parts for the 737.
Then United Airlines said it would pull the Boeing 737 Max from its flight schedule until June. The same day, Spirit AeroSystems, which makes fuselages, said it would end deliveries intended for the Max in January, and Boeing’s new Starliner capsule went off course on a planned trip to the International Space Station.
Board member Lawrence Kellner will become non-executive chairman of the board.
“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 in a prepared statement. “Dave has deep industry experience and a proven track record of strong leadership, and he recognizes 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.”

Trades of Boeing Shares Were Halted Before the Announcement

The crashes and the decisions that were made leading up to those tragedies have shaken Boeing.

“Mr. Muilenburg and other Boeing leaders deliberately put the desire for a heightened stock price and profits over safety by allowing the 737 Max 8 to stay in service after the Lion Air crash [in October 2018.]” — Robert Clifford, a Chicago lawyer representing several people who are suing Boeing after losing relatives in the second crash
“The company appears to have known about safety issues for quite some time. This indicates that there might be more fundamental cultural issues at the company,” said Tim Hubbard, assistant professor of management at the University of Notre Dame’s Mendoza College of Business. “Furthermore, the recent failure of a rocket test launch indicates that the company might not be as innovative as they once were. Increasing innovativeness and changing the culture of a company the size of Boeing is challenging. One way to jump start changes at Boeing could be new leadership.”
Boeing’s new Starliner capsule ended up in the wrong orbit after lifting off on its first test flight Friday, a blow to the company’s effort to launch astronauts for NASA next year.
Trades of Boeing shares were halted before the announcement but the stock jumped 3% after the opening bell.
Muilenburg’s departure was long overdue, said Robert Clifford, a Chicago lawyer representing several people who are suing Boeing after losing relatives in the second crash, which occurred March 10 in Ethiopia.
“Mr. Muilenburg and other Boeing leaders deliberately put the desire for a heightened stock price and profits over safety by allowing the 737 Max 8 to stay in service after the Lion Air crash” in October 2018, Clifford said. Boeing directors, he said, deserve no praise for ousting Muilenburg now.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Clovis Police Make DUI Arrest During Weekend Saturation Patrol

DON'T MISS

US Issues Iran-Related Sanctions on Network of Shipping Companies, Vessels

DON'T MISS

Wall Street Hits Over One-Week Low on Tariff Uncertainty, Data in Focus

DON'T MISS

US Judge Blocks Trump Administration’s Use of Troops in Los Angeles

DON'T MISS

Thousands of Israeli Reservists Report for Duty, as Military Chief Clashes With Ministers

DON'T MISS

Vogue Appoints Chloe Malle to Succeed Anna Wintour as US Editorial Head

DON'T MISS

Garnet Fire in Fresno County Grows to 26,982 Acres, 12% Contained

DON'T MISS

US Construction Spending Dips in July

DON'T MISS

New Quake of Magnitude 5.5 Shakes Devastated Afghan Region as Death Toll Exceeds 1,400

DON'T MISS

Trump Set to Move Space Command Headquarters to Alabama From Colorado, Sources Say

UP NEXT

Trump Set to Move Space Command Headquarters to Alabama From Colorado, Sources Say

UP NEXT

Trump Says Rudy Giuliani Will Receive Top US Civilian Honor

UP NEXT

US Judge Blocks Deportations of Unaccompanied Migrant Children to Guatemala

UP NEXT

Trump Says He Will Order Voter ID Requirement for Every Vote

UP NEXT

Chicago Mayor Says Police Will Not Aid Federal Troops or Agents

UP NEXT

Judge Blocks Pillar of Trump’s Mass Deportation Campaign

UP NEXT

Dollar Trades Lower With Fed Cut In View, On Course For Monthly Drop

UP NEXT

New $250 Visa Fee Risks Deepening US Travel Slump

UP NEXT

Lawsuit Links CA Teen’s Suicide To Artificial Intelligence

UP NEXT

Hearing Ends Without Ruling On Trump’s Firing Of Fed Governor Cook

US Judge Blocks Trump Administration’s Use of Troops in Los Angeles

41 minutes ago

Thousands of Israeli Reservists Report for Duty, as Military Chief Clashes With Ministers

44 minutes ago

Vogue Appoints Chloe Malle to Succeed Anna Wintour as US Editorial Head

47 minutes ago

Garnet Fire in Fresno County Grows to 26,982 Acres, 12% Contained

51 minutes ago

US Construction Spending Dips in July

53 minutes ago

New Quake of Magnitude 5.5 Shakes Devastated Afghan Region as Death Toll Exceeds 1,400

55 minutes ago

Trump Set to Move Space Command Headquarters to Alabama From Colorado, Sources Say

58 minutes ago

Tulare County Authorities Investigate Porterville Shooting

14 hours ago

Trump’s World Liberty Token Falls in First Day of Trading

15 hours ago

Bessent Expects Supreme Court to Uphold Legality of Trump’s Tariffs but Eyes Plan B

15 hours ago

Clovis Police Make DUI Arrest During Weekend Saturation Patrol

Clovis police arrested one driver on suspicion of DUI during a saturation patrol Saturday night that targeted impaired driving, the departme...

20 minutes ago

20 minutes ago

Clovis Police Make DUI Arrest During Weekend Saturation Patrol

United States Department of the Treasury logo and U.S. flag are seen in this illustration taken April 23, 2025. (Reuters File)
23 minutes ago

US Issues Iran-Related Sanctions on Network of Shipping Companies, Vessels

A view shows the New York Stock Exchange (NYSE) Wall Street entrance in New York City, U.S., April 7, 2025. (Reuters File)
26 minutes ago

Wall Street Hits Over One-Week Low on Tariff Uncertainty, Data in Focus

National Guard troops wear gas masks during protests against federal immigration sweeps, in Los Angeles, California, U.S., June 12, 2025. (Reuters File)
41 minutes ago

US Judge Blocks Trump Administration’s Use of Troops in Los Angeles

An Israeli soldier stands on top of a military vehicle at the Israel-Gaza border, as seen from Israel, August 26, 2025. (Reuters File)
44 minutes ago

Thousands of Israeli Reservists Report for Duty, as Military Chief Clashes With Ministers

Anna Wintour attends opening remarks during a press preview of The Costume Institute's exhibition "Superfine: Tailoring Black Style" at The Metropolitan Museum of Art in New York City, U.S., May 5, 2025. (Reuters File)
47 minutes ago

Vogue Appoints Chloe Malle to Succeed Anna Wintour as US Editorial Head

A lightning-sparked wildfire in the Sierra National Forest has burned 24,851 acres and is 12% contained, prompting evacuation orders for several zones in Fresno County as more than 1,470 firefighters work to contain the blaze amid thunderstorm threats, officials said Tuesday, Sept. 2, 2025. (U.S. Forest Service)
51 minutes ago

Garnet Fire in Fresno County Grows to 26,982 Acres, 12% Contained

Construction workers are shown at work on a multi-unit residential housing project in Encinitas, California, U.S., July 28, 2025. (Reuters File)
53 minutes ago

US Construction Spending Dips in July

Search

Help continue the work that gets you the news that matters most.

Send this to a friend