Current:Home > InvestAfter tumultuous 5 years for Boeing, CEO will depart as part of broader company leadership shakeup-DB Wealth Institute B2 Expert Reviews
After tumultuous 5 years for Boeing, CEO will depart as part of broader company leadership shakeup
View Date:2024-12-23 20:29:59
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 Jan. 5. Investigators say bolts that help keep the panel in place were missing after repair work at the Boeing factory.
Boeing CEO Dave Calhoun will step down from the embattled plane maker at the end of the year. Calhoun took over the company after CEO Dennis Muilenburg was ousted following the two crashes.
Board Chair Larry Kellner has also told the company he doesn’t plan to stand for re-election.
Boeing also said Monday that Stan Deal, president and CEO of its commercial airplanes unit, will retire from the company. Stephanie Pope will now lead the division.
Boeing is also under intense pressure from the CEOs 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,” Calhoun wrote in a letter to employees.
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 Kellner as independent board chair. In this role, Mollenkopf will lead the board’s process of choosing Boeing’s next CEO.
Shares rose 4% before the market open.
veryGood! (1)
Related
- Trump has promised to ‘save TikTok’. What happens next is less clear
- Matthew Perry's Doctors Lose Prescription Credentials Amid Ketamine Case
- Donald Trump posts fake Taylor Swift endorsement, Swifties for Trump AI images
- Madonna Poses With All 6 Kids in Rare Family Photo From Italian Birthday Bash
- Beyoncé course coming to Yale University to examine her legacy
- Firefighters significantly tame California’s fourth-largest wildfire on record
- Taylor Swift asks production for help during 'Champagne Problems'
- University of Missouri student group ‘heartbroken’ after it was told to rename its Welcome Black BBQ
- Reese Witherspoon's Daughter Ava Phillippe Introduces Adorable New Family Member
- Taylor Swift asks production for help during 'Champagne Problems'
Ranking
- This is Your Sign To Share this Luxury Gift Guide With Your Partner *Hint* *Hint
- These Lululemon Under $50 Finds Include $39 Align Leggings & More Styles That Reviewers Call “Super Cute”
- Nebraska’s special legislative session is high on conflict, low on progress to ease property taxes
- A North Carolina woman dies after going on a Vodou retreat in Haiti. Her son wants answers.
- Sister Wives' Janelle Brown Details to Meri Why She Can't Trust Ex Kody and His Sole Wife Robyn
- Taylor Swift finally sings long awaited 'Reputation' track
- Joe Jonas Shares Glimpse Into His Crappy 35th Birthday Celebration
- When does the college football season start? Just a few days from now
Recommendation
-
Some women are stockpiling Plan B and abortion pills. Here's what experts have to say.
-
The Latest: Preparations underway for night 1 of the DNC in Chicago
-
Julianne Hough Reveals Which Dancing With the Stars Win She Disagreed With
-
2 dead, at least 100 evacuated after flooding sweeps through Connecticut
-
Trump announces Tom Homan, former director of immigration enforcement, will serve as ‘border czar’
-
Ernesto strengthens to Category 1 hurricane; storm's swells lead to 3 deaths: Updates
-
Ernesto strengthens to Category 1 hurricane; storm's swells lead to 3 deaths: Updates
-
In Wisconsin Senate Race, Voters Will Pick Between Two Candidates With Widely Differing Climate Views