Boeing CEO Dave Calhoun to quit by end of 2024
Boeing's CEO, Dave Calhoun (66), has announced his plan to relinquish his role by the end of 2024. Larry Kellner, the current chairperson of the board, is also preparing to step down, and will vacate his position at Boeing's annual gathering in May. Steve Mollenkopf, a member of Boeing's board since 2020, is slated to fill Kellner's shoes.
Additional leadership shifts at the firm
Stan Deal, the President and CEO of Boeing Commercial Airplanes, is parting ways with the company effective immediately. Stephanie Pope, who recently transitioned into the role of Boeing's Chief Operating Officer after spearheading Boeing Global Services, will assume Deal's responsibilities. These exits are part of a substantial leadership shake-up at the aerospace giant.
Boeing under increased examination over quality concerns
Boeing is grappling with escalating demands from airlines and regulatory bodies, for significant alterations following a string of quality and manufacturing problems with their aircraft. The scrutiny intensified after an incident on January 5, when a door plug was ejected from an almost new Boeing 737 MAX 9 during an Alaska Airlines flight. This event has been labeled as a "watershed moment" for the company by Calhoun.
Boeing CEO addresses quality concerns
In a communique to employees, Calhoun underscored the importance of humility, transparency, and an unwavering commitment to safety as well as quality across all levels within the organization. "The eyes of the world are on us," he penned. He conveyed his belief that Boeing would navigate through this crisis and emerge as a stronger entity. Calhoun has been reassuring investors, airline customers, as well as the public that Boeing is actively addressing its quality concerns.
Airline CEOs voice discontent with Boeing
In recent times, airline CEOs have started arranging meetings with Boeing directors, to air their dissatisfaction with the perceived absence of manufacturing quality controls, and the slower than anticipated production of 737 MAX planes. These discussions were planned to involve Kellner and possibly other board members. This development comes in the wake of escalating demands for significant changes at Boeing.
Boeing's stock ascends amid management overhaul
In the wake of Calhoun's announced departure, Boeing's stock experienced a surge of over 3% in premarket trading in the US. Concurrently, Boeing's most substantial labor union, the International Association of Machinists District 751, is reportedly vying for a board seat at the company. The union represents 32,000 employees at factories in Washington and is presently negotiating a contract with Boeing.