Boeing CEO, other executives stepping down amid safety crisis
Boeing announced on Monday that three senior executives, including its CEO, are stepping down amidst an ongoing scandal and federal investigation into the safety of its passenger jets.
In a statement, CEO Dave Calhoun confirmed his departure by the end of the year. Stan Deal, CEO and president of Boeing Commercial Airplanes, has retired with immediate effect. Larry Kellner, chair of the company’s board of directors, will not seek re-election at the next shareholders’ annual meeting. He will be succeeded by Boeing board member and former Qualcomm CEO Steve Mollenkopf.
The company has faced a string of negative reports since a door panel blew out on a Boeing 737 Max plane operated by Alaska Airlines in January. The aftermath of this incident continues, with the FBI informing passengers last week that they may have been victims of a crime still under investigation.
Despite Boeing’s efforts to improve safety and cooperate with federal investigators, some passengers have expressed apprehension about boarding its aircraft.
In a letter to staff posted on Boeing’s website, Calhoun acknowledged the impact of the Alaska Airlines incident on the company. He emphasized the need for humility, transparency, and a renewed commitment to safety and quality at all levels of the organization.
Speaking to CNBC after the announcement, Calhoun admitted ongoing challenges at Boeing, citing production pressures that have affected performance.
Calhoun, who took over as CEO in 2020 following two air disasters involving Boeing planes, promised to address internal culture issues at the company. He acknowledged the depth of these challenges in an interview with the New York Times at the time of his appointment.
In 2021, Boeing agreed to pay a $2.5 billion penalty to settle criminal charges related to its 737 Max airplane. The company admitted to deceiving the FAA about the reliability of its MCAS system.
Michael Whitaker, administrator of the Federal Aviation Administration, emphasized the need for Boeing to improve its culture and practices to meet safety standards.
Alaska Airlines, which has a longstanding relationship with Boeing, expressed commitment to the company despite the recent incident. However, some Wall Street analysts have called for significant cultural changes at Boeing and its parts supplier, Spirit AeroSystems, in response to ongoing safety concerns.
