Boeing’s Chief Executive To Step Down as Part of Larger Leadership Shakeup at Embattled Plane Maker

The company has come under intense scrutiny over its manufacturing process following a door-panel blowout in January and two crashes in 2018 and 2019.

AP/Wilfredo Lee, file
Two United Airlines Boeing 737s at Fort Lauderdale-Hollywood International Airport in Florida, July 7, 2022. AP/Wilfredo Lee, file

The top executive at embattled plane maker Boeing will step down this year amid a broader shakeup of the company’s top leadership, capping a tumultuous five plus years that has shaken faith in one of America’s most storied manufacturers.

The company has come under intense scrutiny over its manufacturing process since a pair of its marquee aircraft crashed, killing hundreds of people in late 2018 and 2019 in Indonesia and Ethiopia.

Those problems have snowballed and the Federal Aviation Administration recently ordered an audit of assembly lines at a Boeing factory near Seattle, where the company builds planes like the Alaska Airlines 737 Max that suffered a door-panel blowout on January 5. Investigators say bolts that help keep the panel in place were missing after repair work at the Boeing factory.

Boeing’s chief executive, Dave Calhoun, will step down from the embattled plane maker at the end of the year. Mr. Calhoun took over the company after chief executive Dennis Muilenburg was ousted following the two crashes.

The chairman of Boeing’s board, Larry Kellner, has also told the company he doesn’t plan to stand for re-election.

Boeing also said Monday that the president and chief executive of its commercial airplanes unit, Stan Deal, will retire from the company. Stephanie Pope will now lead the division.

Boeing is also under intense pressure from the chief executives of various airlines, who have been outspoken in their frustration with Boeing’s manufacturing problems, which have slowed deliveries of planes that the carriers were counting on.

Southwest Airlines recently said that it was reevaluating its financial expectations for this year because of related delays in the delivery of planes.

“As we begin this period of transition, I want to assure you, we will remain squarely focused on completing the work we have done together to return our company to stability after the extraordinary challenges of the past five years, with safety and quality at the forefront of everything that we do,” Mr. Calhoun wrote in a letter to employees.

Mr. Calhoun acknowledged that Alaska Airlines Flight 1282 was a “watershed” moment for Boeing.

“We must continue to respond to this accident with humility and complete transparency. We also must inculcate a total commitment to safety and quality at every level of our company,” he said.

The board has elected Steve Mollenkopf to succeed Mr. Kellner as independent board chairman. In this role, Mr. Mollenkopf will lead the board’s process of choosing Boeing’s next chief executive.

Associated Press


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