Leaders leave ailing airline
Boeing has announced a leadership overhaul amid its safety crisis.
Boeing has announced that its CEO, Dave Calhoun, Chairman Larry Kellner, and the head of its commercial aeroplanes division, Stan Deal, will be stepping down.
The changes, effective immediately for Mr Deal and at the end of 2024 for Mr Calhoun, come as the aerospace giant battles a crisis involving its flagship 737 Max jetliner.
Boeing has faced mounting criticism over its handling of manufacturing and safety issues, highlighted by a recent incident where a door detached from a 737 Max mid-flight. The US Federal Aviation Administration's comprehensive audit of Boeing has further spotlighted concerns over the company's safety culture.
Despite these challenges, Boeing's stock saw a modest rise of 2 per cent in early trading in New York, although it remains down 28 per cent for the year, marking it as the worst performer in the Dow Jones Industrial Average.
Mr Calhoun, who has a long history with Boeing, as well as with General Electric and Blackstone, took the helm during a turbulent time for the company.
Under his leadership, the 737 Max returned to commercial service in 2020 after a worldwide grounding following two fatal crashes.
Boeing's largest labour union, representing 32,000 workers, is now seeking a seat on the company's board, arguing for a stronger voice in company decisions to address ongoing quality control issues.
The call for worker representation on the board comes amidst contract negotiations, with the union pushing for significant pay increases and assurances for future aircraft production to remain in Washington state.
The incident with the 737 Max door panel, which occurred on an Alaska Airlines flight, has led to investigations by both the US Federal Aviation Administration and the Department of Justice.
In 2021, Boeing reached a $2.5 billion settlement over its role in the two fatal crashes, contingent upon the implementation of a compliance program.
Questions have been asked following the death of a former Boeing employee who raised concerns about the company’s safety and production standards.