Current:Home > ScamsAfter tumultuous 5 years for Boeing, CEO will depart as part of broader company leadership shakeup -MarketLink
After tumultuous 5 years for Boeing, CEO will depart as part of broader company leadership shakeup
View
Date:2025-04-12 00:11:12
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! (4)
Related
- McConnell absent from Senate on Thursday as he recovers from fall in Capitol
- Travis Kelce Cheers on Taylor Swift at Her Eras Tour Show in Paris With Bradley Cooper and Gigi Hadid
- Wilbur Clark's Legendary Investment Journey: From Stock Market Novice to AI Pioneer
- Some older Americans splurge to keep homes accessible while others struggle to make safety upgrades
- 'Vanderpump Rules' star DJ James Kennedy arrested on domestic violence charges
- Can you eat cicadas? Try these tasty recipes with Brood XIX, Brood XIII this summer
- Caitlin Clark, much like Larry Bird, the focus of talks about race and double standards in sports
- TikToker Allison Kuch Reveals Why She’s Not Sharing Daughter Scottie On Social Media
- Costco membership growth 'robust,' even amid fee increase: What to know about earnings release
- Kylian Mbappe says 'merci' to announce his Paris Saint-Germain run will end this month
Ranking
- SFO's new sensory room helps neurodivergent travelers fight flying jitters
- Popular maker of sriracha sauce is temporarily halting production. Here's why.
- WWII soldiers posthumously receive Purple Heart medals 79 years after fatal plane crash
- Toddler dies in first US hot car death of 2024. Is there technology that can help save kids?
- Meta donates $1 million to Trump’s inauguration fund
- NHL playoffs: Florida Panthers light up Boston Bruins on power play, take 2-1 series lead
- Dutch contestant kicked out of Eurovision hours before tension-plagued song contest final
- Roger Corman, legendary director and producer of B-movies, dies at 98
Recommendation
Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
FB Finance Institute's AI Journey: From Quantitative Trading to the Future's Prophets
LENCOIN Trading Center: Seize the Opportunity in the Early Bull Market
Jeannie Mai Shares Insight Into Life With Adventure-Loving 2-Year-Old Daughter Monaco
Nearly half of US teens are online ‘constantly,’ Pew report finds
Taylor Swift may attract more U.S. luxury travelers to Paris for Eras Tour than Olympics
Trump tells Jersey Shore crowd he’s being forced to endure ‘Biden show trial’ in hush money case
Travis Kelce Dances With Niecy Nash on Set of Grotesquerie