Boeing CEO Dave Calhoun to Step Down by End of Year
Boeing’s chief executive, Dave Calhoun, will leave the company by the end of this year, the company announced in a press release. This decision comes amidst quality concerns and production problems.
New Leadership at Boeing
The head of its commercial aircraft business, Stanley Deal, will step aside immediately, and its chairman, Larry Kellner, won’t stand for re-election. Deal will be replaced by Stephanie Pope, who was recently appointed operating chief.
A Turbulent Tenure
Mr. Calhoun took on the chief executive role in early 2020 after the previous boss, Dennis Muilenburg, was ousted in the aftermath of one of the biggest scandals in Boeing’s history.
Within five months, two brand new 737 Max planes had been lost in almost identical accidents that claimed the lives of 346 passengers and crew.
Mr. Calhoun promised to strengthen Boeing’s “safety culture” and “rebuild trust.”
Recent Setback
However, in January this year, a disused emergency exit door blew off a new Alaska Airlines Boeing 737 Max shortly after take-off from Portland International Airport.
An initial report from the US National Transportation Safety Board concluded that four bolts meant to attach the door securely to the aircraft had not been fitted.
Boeing is reportedly facing a criminal investigation into the incident itself, as well as legal action from passengers aboard the plane.
Pressure from Investors and Airlines
Boeing has been under pressure since a Jan. 5 midair blowout on an Alaska Airlines flight from investors and airline operators to spell out a plan for fixing the company’s quality problems.
A group of airline CEOs had recently requested meetings with Boeing’s board, an unusual move showing their dissatisfaction with the company and Calhoun.
A Second Consecutive CEO Exit
Calhoun, who took the top job about four years ago, had promised a turnaround of the giant manufacturer. Instead, he becomes the second consecutive Boeing boss to exit amid quality concerns and production problems.
His exit leaves the board openly searching for a replacement, and the board is looking both inside and outside its executive ranks for a new leader. That search will be led by a new chairman, Steve Mollenkopf, a former CEO of Qualcomm.
Closing Remarks
In a letter to staff, Calhoun described the Alaska Airlines incident as a “watershed moment” for Boeing and it had to respond with “humility and complete transparency.”
He said he had originally agreed to become chief executive “because of the unprecedented circumstances the company was facing at the time.”
Conclusion
Boeing is facing a critical moment in its history, and the company’s ability to respond effectively to the recent setbacks will be crucial in determining its future direction.
FAQs
Q: Why is Boeing’s CEO, Dave Calhoun, stepping down?
A: Calhoun will leave the company by the end of this year due to quality concerns and production problems.
Q: Who will replace Stanley Deal as the head of Boeing’s commercial aircraft business?
A: Stephanie Pope, who was recently appointed operating chief, will replace Deal.
Q: What is the reason for Larry Kellner’s decision not to stand for re-election as Boeing’s chairman?
A: The company has not provided a specific reason for Kellner’s decision.
Q: What is the status of the criminal investigation into the Alaska Airlines incident?
A: Boeing is reportedly facing a criminal investigation into the incident itself, as well as legal action from passengers aboard the plane.