Boeing CEO Dave Calhoun is set to step down at the end of 2024 as part of a major management reorganization at the troubled aerospace company. The current chairman of the board, Larry Kellner, will not seek reelection, with Steve Mollenkopf taking over as the new chair. Stan Deal, the president and CEO of Boeing’s commercial airplanes unit, is leaving the company immediately, and Stephanie Pope is stepping into his role after serving as the company’s chief operating officer.
The changes come amid increasing pressure from airlines and regulators following a series of quality and manufacturing issues with Boeing planes. Calls for change intensified after an incident on Jan. 5 where a plug blew out of a new Boeing 737 Max 9 aircraft shortly after takeoff on an Alaska Airlines flight.
In a message to employees, Calhoun acknowledged the significance of the Alaska Airlines incident and emphasized the need for transparency, safety, and quality throughout the company. He expressed confidence in Boeing’s ability to overcome challenges and emerge as a stronger organization.
Calhoun’s decision to resign was solely his own, and he stressed the importance of taking proactive steps to address issues in manufacturing and supply chain management. He took on the role of CEO in January 2020 following the removal of the previous CEO, Dennis Muilenburg, after two fatal crashes involving the 737 Max aircraft.
Boeing’s production struggles have led to delivery delays and growth impediments. Stakeholders, including airline CEOs, have voiced concerns over the company’s manufacturing quality controls and production volumes. Despite these challenges, Boeing’s stock price saw a slight increase following the announcement of the leadership changes, although it has declined more than 26% this year.
The management changes at Boeing have been met with a mix of support and criticism from industry experts and airline customers. Ryanair CEO Michael O’Leary welcomed the leadership changes, while United CEO Scott Kirby raised concerns about ongoing production of uncertified aircraft. Airlines have been engaging with Boeing directors to express their dissatisfaction with current practices and push for improvements in quality control.
Overall, the reshuffling of leadership at Boeing signals a pivotal moment for the company as it navigates ongoing challenges and works to rebuild trust with customers and regulators. The path ahead will require a concerted effort to address operational deficiencies and restore confidence in Boeing’s products and services.
Boeing CEO Dave Calhoun will step down at the end of 2024 as part of a management shake-up for the aerospace giant. Larry Kellner, chairman of the board, will also not stand for reelection at the annual meeting in May. Steve Mollenkopf will succeed him as chair and lead the board in picking a new CEO. Stan Deal, president of Boeing’s commercial airplanes unit, is leaving the company immediately, with Stephanie Pope taking over his role. The changes come as airlines and regulators call for improvements following recent quality and manufacturing issues with Boeing planes, including a recent accident on an Alaska Airlines flight. Calhoun emphasized the company’s commitment to safety and quality, saying the eyes of the world are on Boeing. The decision for Calhoun to resign was his own, with a focus on addressing the need for changes in the company’s production processes and supply chain. The management changes were welcomed by some of Boeing’s largest customers, including Ryanair and United Airlines. The stock price of Boeing increased after the announcements, but the company still faces challenges with production delays and quality control issues.
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