Boeing Co fired CEO Dennis Muilenburg. He failed to cope with the aftermath of the 737 Max crisis, which cost the company $ 9 billion, hurt suppliers and airlines..
Boeing said in a statement that the board of directors «decided that a change of leadership is necessary to restore confidence in a company that is moving forward as it works to rebuild relationships with regulators, customers and all other stakeholders».
Muilenburg, 55, has worked at Boeing for his 34-year career, serving as CEO since 2015. Boeing did not answer questions about how much it will receive in severance pay. Boeing shares more than tripled during Muilenburg's tenure as the airline ramped up production of jetliners and returned most of its profits to shareholders through share buybacks and dividend increases..
Chairman David Calhoun, a former CEO of General Electric who has served on Boeing's board of directors since 2009, will take over as CEO and president of the company on 13 January. Prior to that, CFO Greg Smith will lead the world's largest aircraft manufacturer.
Larry Kellner, who will take over as chairman of the board, said: «On behalf of the entire board of directors, I am delighted that Dave [Calhoun] has agreed to lead Boeing at this critical juncture. Dave has a wealth of industry experience and proven track record of strong leadership, and he understands the challenges we must face. The Board and I look forward to working with him and the rest of the Boeing team to make today a new step forward for our company.».
Calhoun said: «I am a firm believer in the future of Boeing and the 737 Max I am honored to lead this great company and 150,000 dedicated employees who are working to create the future of aviation.».
The Boeing 737 Max, which was the company's best-selling commercial aircraft, was decommissioned worldwide in March 2019 after two fatal accidents that killed 346 people. It is still not approved by regulators despite Boeing's efforts to fix software issues..
Boeing continued to produce the 737 Max during the ban, but uncertainty about when federal regulators would allow the aircraft to operate has rendered production bankrupt. Boeing changed the schedule for the return of the 737 Max to the skies several times throughout the year. Boeing has also lost the confidence of lawmakers, especially after a former employee testified before Congress earlier this month that Boeing ignored safety concerns when building the 737 Max..
The spacecraft, which Boeing is building to carry NASA astronauts to the International Space Station, crashed last week on its first ever space flight. The uncrewed test flight, which took place after years of delays and setbacks, was to be the last major test before humans were sent into space..
The company has also come under fire from federal oversight officials for overspending $ 1 billion and missed deadlines through another NASA contract to build a space rocket system, a huge rocket that the space agency wants to use to bring people back to the moon..
Boeing shares, which fell more than 20% in the past nine months, closed 2.9% higher after the release of the head of the company..