After a tumultuous few months for the embattled aircraft manufacturer Boeing, a massive management shakeup has just been announced, with CEO Dave Calhoun announcing his decision to leave the company, along with the board chair and the head of Boeing’s problem-plagued commercial airlines division.
Although the writing has been on the wall for Calhoun for some time, he says he will stay on at the helm of Boeing until the end of 2024 in order to “stabilize and position the company for the future.”
Stan Deal, Boeing Commercial Airplanes President and CEO wasn’t, however, nearly as lucky and has been replaced, effective immediately, by Stephanie Pope. Meanwhile, board chair Larry Kellner says he won’t seek reappointment at Boeing’s upcoming annual shareholder meeting.
The catalyst for Monday’s resignations was, of course, the mid-cabin exit plug blowout on Alaska Airlines flight 1282 in January. In a memo to employees, Calhoun described the accident as a ‘watershed’ moment for the beleaguered company.
Boeing has been accused of neglecting safety in a desperate bid to boost profits, and Calhoun now admits that Boeing must become a “better company”.
In order to achieve that aim, it’s become apparent that change at the very top is desperately needed.
Calhoun became CEO following the fallout from the two fatal 737MAX accidents involving a Lion Air flight in October 2018 and an Ethiopian Airlines flight less than six months later in March 2019.
After five years in the role, however, Calhoun has run out of time to turn the company around.
“We have been working together for the last five years to address some of the most significant challenges our company and industry have ever faced in our 108-year history” Calhoun wrote in his all company memo.
“I am confident that the way we have confronted these challenges, and how we are responding to this specific moment, is establishing standards for future generations of employees and will be woven into the fabric of how we operate for decades to come.”
Boeing is facing increased regulatory oversight as a result of the Alaska Airlines accident, as well as a potential criminal investigation and multiple civil lawsuits. Increased scrutiny is also likely to slow down certification of Boeing’s very delayed 737MAX-10 model, as well as the eagerly anticipated 777X.
