Please ensure Javascript is enabled for purposes of website accessibility
Boeing CEO to Exit in Broad Management Shakeup as Manufacturing Issues Plague Storied Plane Maker
gvw_ap_news
By Associated Press
Published 3 weeks ago on
March 25, 2024

Boeing announces CEO David Calhoun's departure amid leadership changes, facing intense scrutiny and efforts to enhance safety and quality. (AP/File)

Share

Getting your Trinity Audio player ready...

Boeing CEO David Calhoun will step down from the embattled plane maker at the end of the year as part of a broad management shakeup after a series of mishaps at one of America’s iconic manufacturers.

Immediate Retirement and New Leadership

Stan Deal, president and CEO of Boeing’s commercial airplanes unit, will retire immediately. Stephanie Pope, the company’s chief operating officer for less than three months, has taken over leadership of the key division.

The company said board Chairman Lawrence Kellner, a former airline chief, won’t stand for re-election in May and will be replaced by a former Qualcomm CEO.

Boeing Under Pressure

Boeing has been under intense pressure since early January, when a panel blew off a brand-new Alaska Airlines 737 Max. Investigators say bolts that help keep the panel in place were missing after repair work at the Boeing factory.

The Federal Aviation Administration has stepped up its scrutiny of the company, including putting a limit on production of 737s. An FAA audit of Boeing’s 737 factory near Seattle gave the company failing grades on nearly three dozen aspects of production.

Airline executives have expressed their frustration with the company, and even minor incidents involving Boeing jets have attracted extra attention.

Increased Scrutiny After Crashes

Fallout from the Jan. 5 blowout has raised scrutiny of Boeing to its highest level since two Boeing 737 Max jets crashed in 2018 in Indonesia and 2019 in Ethiopia. In all, the crashes killed 346 people.

In a note Monday to employees, Calhoun, 67, called the accident “a watershed moment for Boeing.” that requires ”a total commitment to safety and quality at every level of our company.”

“The eyes of the world are on us, and I know we will come through this moment a better company, building on all the learnings we accumulated as we worked together to rebuild Boeing over the last number of years,” he said.

Efforts to Improve Quality

Boeing’s most significant effort to improve quality has the opening of discussions about bringing Spirit AeroSystems, which builds fuselages for the Max and many parts for that and other Boeing planes, back into the company. Mistakes made at Spirit, which Boeing spun off nearly 20 years ago, have compounded the company’s problems.

Calhoun said the two companies are making progress in talks “and it’s very important.”

CEO’s Decision to Leave

Calhoun said the decision to leave was his. Calhoun was a Boeing director when he became CEO in January 2020, replacing Dennis Muilenburg, who was fired in the aftermath of the Max crashes. In 2021, Boeing’s board raised the mandatory retirement age for CEO to keep Calhoun in the job.

The company has chosen former Qualcomm CEO Steven Mollenkopf to become the new board chairman and to lead the search for Calhoun’s replacement.

Analysts’ Take on the Shakeup

Richard Aboulafia, a longtime aerospace analyst and now a consultant at AeroDynamic Advisory, said the management shakeup “is likely to be a pivotal moment in Boeing’s history, and probably a very positive one,” but the outcome depends on the next CEO. He said Patrick Shanahan, a former Boeing executive and acting U.S. Defense secretary who has led Spirit AeroSystems since last fall, would be “a great choice.”

Cai von Rumohr, aerospace analyst at Cowen, said the management changes are “a partial step toward changing its culture to underscore safety and rebuild investor confidence in the company.” He said the fact that Calhoun gave more than eight months’ notice will help the Boeing board make “a considered decision” instead of “a knee-jerk reaction.”

New Leadership in Commercial Airplanes Business

Pope, the new head of the commercial-airplanes business, was promoted to Boeing chief operating officer only in January. Before that, she was president and CEO of Boeing’s services business and chief financial officer of the airplanes division.

Shares of The Boeing Co. rose about 1% in early trading.

RELATED TOPICS:

DON'T MISS

Sacramento Gave Homeless Camp a Lease as an Experiment. Here’s What Happened.

DON'T MISS

Merced Supervisors Accused of ‘Triple Crown Race’ of Failures Amid Talk of Closing Fire Stations

DON'T MISS

Teacher Appreciation Week Surprises That Educators Will Love

DON'T MISS

A Mission of Mercy, Then a Fatal Strike: How an Aid Convoy in Gaza Became Israel’s Target

DON'T MISS

Walberg Era Begins With a Charge to ‘Revolutionize’ Bulldogs Basketball

DON'T MISS

California Man Sentenced to 40 Years to Life for Fatal Freeway Shooting of 6-Year-Old Boy

DON'T MISS

16 Clovis Students Rewarded With Scholarships for Their Resilience

DON'T MISS

Dr. Green Thumb’s Is Open. Sweet Flower Debuts Saturday in Fresno Cannabis Rollout.

DON'T MISS

Reacher Star Alan Ritchson Calls Donald Trump a ‘Rapist’

DON'T MISS

Community Leaders Call for Transparency in Fresno Superintendent Search

UP NEXT

Merced Supervisors Accused of ‘Triple Crown Race’ of Failures Amid Talk of Closing Fire Stations

UP NEXT

Teacher Appreciation Week Surprises That Educators Will Love

UP NEXT

A Mission of Mercy, Then a Fatal Strike: How an Aid Convoy in Gaza Became Israel’s Target

UP NEXT

Walberg Era Begins With a Charge to ‘Revolutionize’ Bulldogs Basketball

UP NEXT

California Man Sentenced to 40 Years to Life for Fatal Freeway Shooting of 6-Year-Old Boy

UP NEXT

16 Clovis Students Rewarded With Scholarships for Their Resilience

UP NEXT

Dr. Green Thumb’s Is Open. Sweet Flower Debuts Saturday in Fresno Cannabis Rollout.

UP NEXT

Reacher Star Alan Ritchson Calls Donald Trump a ‘Rapist’

UP NEXT

Community Leaders Call for Transparency in Fresno Superintendent Search

UP NEXT

Israeli Settlers Rampage Through a West Bank Village, Killing 1 Palestinian and Wounding 25

A Mission of Mercy, Then a Fatal Strike: How an Aid Convoy in Gaza Became Israel’s Target

11 hours ago

Walberg Era Begins With a Charge to ‘Revolutionize’ Bulldogs Basketball

22 hours ago

California Man Sentenced to 40 Years to Life for Fatal Freeway Shooting of 6-Year-Old Boy

23 hours ago

16 Clovis Students Rewarded With Scholarships for Their Resilience

1 day ago

Dr. Green Thumb’s Is Open. Sweet Flower Debuts Saturday in Fresno Cannabis Rollout.

1 day ago

Reacher Star Alan Ritchson Calls Donald Trump a ‘Rapist’

1 day ago

Community Leaders Call for Transparency in Fresno Superintendent Search

1 day ago

Israeli Settlers Rampage Through a West Bank Village, Killing 1 Palestinian and Wounding 25

1 day ago

US Intelligence Finding Shows China Surging Equipment Sales to Russia to Help War Effort in Ukraine

1 day ago

From Tragedy to Triumph: The Land Before Time Litter’s Journey

1 day ago

Sacramento Gave Homeless Camp a Lease as an Experiment. Here’s What Happened.

When Sacramento changed its plan to demolish a homeless encampment on a vacant lot on Colfax Street, instead offering the homeless occupants...

8 hours ago

8 hours ago

Sacramento Gave Homeless Camp a Lease as an Experiment. Here’s What Happened.

10 hours ago

Merced Supervisors Accused of ‘Triple Crown Race’ of Failures Amid Talk of Closing Fire Stations

10 hours ago

Teacher Appreciation Week Surprises That Educators Will Love

11 hours ago

A Mission of Mercy, Then a Fatal Strike: How an Aid Convoy in Gaza Became Israel’s Target

22 hours ago

Walberg Era Begins With a Charge to ‘Revolutionize’ Bulldogs Basketball

23 hours ago

California Man Sentenced to 40 Years to Life for Fatal Freeway Shooting of 6-Year-Old Boy

1 day ago

16 Clovis Students Rewarded With Scholarships for Their Resilience

1 day ago

Dr. Green Thumb’s Is Open. Sweet Flower Debuts Saturday in Fresno Cannabis Rollout.

MENU

CONNECT WITH US

Search

Send this to a friend