Boeing CEO Dennis Muilenburg ousted as 737 Max crisis deepens
Boeing’s chief executive officer has been forced out by the board of directors amid continuing problems with the company’s troubled Max 737 aircraft.
The Chicago-based manufacturer said Monday that Dennis Muilenburg is stepping down immediately. Board chairman David Calhoun will take over as CEO on Jan. 13.
The board said a change in leadership was necessary to restore confidence in the company as it works to repair relationships with regulators and stakeholders. The Max was grounded worldwide in March after the second of two crashes, killing a combined total of 346 people.
Calhoun says he strongly believes in the future of Boeing and the 737 Max.
The leadership change follows Boeing’s announcement last week that it would halt Max production in January.
Then United Airlines said it would pull the Boeing 737 Max from its flight schedule until June. The same day, Spirit AeroSystems, which makes fuselages, said it would end deliveries intended for the Max in January.
And capping matters last Friday, Boeing’s new Starliner space capsule went off course on a planned trip to the International Space Station, heading into the wrong orbit due to a timing error. The unmanned vehicle landed safely on Sunday.
‘Emphasis on engineering’
Speculation that Muilenburg would be fired had been circulating in the industry for months, intensifying in October when the board stripped him of his chairman title.
Aerospace analyst Richard Aboulafia said the appointment of Calhoun, who previously served as head of Blackstone Group’s private equity portfolio operation, will provide needed short-term stability but not the long-term «emphasis on engineering» the company needs.
«Calhoun is respected in the industry,» Aboulafia said on Monday. «But long-term, does he bring the right tool kit? Private equity leans companies out. That’s not Boeing’s problem right now.»
Board member Lawrence Kellner will become non-executive chairman of the board.
«On behalf of the entire board of directors, I am pleased that Dave has agreed to lead Boeing at this critical juncture,» Mr. Kellner said in a prepared statement.
«Dave has deep industry experience and a proven track record of strong leadership, and he recognizes the challenges we must confront. The board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company.»
