Boeing CEO Dennis Muilenburg ousted after a disastrous year

Economy 11:58 24.12.2019

Boeing CEO Dennis Muilenburg was ousted on Monday after a tumultuous period in which the company faced a series of setbacks, including two fatal crashes, delays and numerous issues with its 737 Max airplane. Boeing continues to struggle to get its most important product back in the air, Eurasia Diary reports citing CNN.

Chairman David Calhoun will take over as CEO, effective January 13, 2020.

Boeing (BA) said in a press release that its board of directors decided to part ways with Muilenberg in part because its customers and regulators no longer trusted the company's decision-making.

"A change in leadership was necessary to restore confidence in the company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders," the company said.

Boeing's 737 Max, which was the company's bestselling commercial jet, was grounded worldwide in March 2019 after two fatal crashes killed 346 people. It still hasn't returned to flight, despite Boeing's efforts to clear a software fix with regulators.

Other problems have plagued Boeing during Muilenberg's tenure. Another version of the 737 Max, an older version of 737 NG aircraft, was found to have structural cracks that forced airlines to inspect their fleets.

Boeing still has a strong balance sheet, and its stock is up marginally this year despite all of its setbacks. But questions about the company's leadership grew louder as the company's missteps added up.

"Under the company's new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers," the company said in a statement.

Boeing's stock rose 3% in early trading Monday.

Muilenburg was informed Sunday night that Boeing's board of directors would ask him to resign, according to a person familiar with the board's decision.

The call came after board members met in-person last weekend and expressed concerns that Muilenburg got "sideways" with the FAA as well as with some customers who have been hurt and confused by all the shifting timelines for the 737 Max, the source said. The board, however, didn't directly address Dennis's future at the board meeting last weekend.

Some board members expressed concerns that a leadership change could destabilize the company. But, ultimately, the board concluded the company and the FAA are in a good place now with a schedule and timeline to get the 737 the certification it needs.

Muilenburg, 55, became CEO of the world's largest aerospace company in July 2015. He previously held the chairman role as well but relinquished that seat in October. He had worked at Boeing in a number of different roles since 1985.

Incoming CEO Calhoun has served on Boeing's board since 2009. He has also served as a senior managing director at Blackstone Group and he previously was the chairman and CEO of Nielsen Holdings.

Azerbaijan takes measures to turn Khankandi into safe city - VİDEO

News line

Crocus City Hall terrorists took drugs before attack - law enforcement agencies
Crocus City Hall terrorists took drugs before attack - law enforcement agencies
18:33 28.03.2024
Azerbaijan, UN Development Program mull future co-op
18:00 28.03.2024
An Independent Trade Union Established within International Eurasia Press Fund - First in NGO sector - PHOTOS
17:39 28.03.2024
Italian PM condemns Macron for idea of sending troops to Ukraine
Italian PM condemns Macron for idea of sending troops to Ukraine
17:23 28.03.2024
Azerbaijan lends clarity to color requirement for taxis
17:02 28.03.2024
Isaac Herzog: Israel has no greater friend than US, and US has no greater friend than Israel
Isaac Herzog: Israel has no greater friend than US, and US has no greater friend than Israel
16:45 28.03.2024
Nigerian army eliminates over 200 militants in 2 weeks
16:30 28.03.2024
Armored Vehicle Coalition for Ukraine launched in Poland
Armored Vehicle Coalition for Ukraine launched in Poland
16:15 28.03.2024
Russia strengthens transport security measures after terror attack at Crocus City Hall
Russia strengthens transport security measures after terror attack at Crocus City Hall
15:55 28.03.2024
Türkiye plays an important role between Russia and Ukraine - says political scientist Ismail Cingoz
15:45 28.03.2024
2 schoolchildren detained in France on suspicion of sending bomb threats
15:35 28.03.2024
Ski resort in Georgia hit by avalanche
Ski resort in Georgia hit by avalanche
15:26 28.03.2024
Another protest against French colonialism held in New Caledonia, Azerbaijani flag raised
Another protest against French colonialism held in New Caledonia, Azerbaijani flag raised
15:15 28.03.2024
Media: US did not transfer all information about terrorist attack in Crocus City Hall to Russia
15:00 28.03.2024
Movement ‘Together’ calls on Armenia’s parliamentary forces to express vote of no confidence in Pashinyan
14:41 28.03.2024
Azerbaijan to participate in international trade fair in Istanbul
Azerbaijan to participate in international trade fair in Istanbul
14:32 28.03.2024
Le Pen accuses French government of fraud
14:22 28.03.2024
Armenian Government Grapples with Internal Division on Village Return Issue - Ishkhan Verdiyan talks on Ednews
14:12 28.03.2024
Ammunition found along route of Crocus City Hall terrorists
Ammunition found along route of Crocus City Hall terrorists
13:41 28.03.2024
Expert Ilyas Huseynov Predicts Peaceful Return of these territories to Azerbaijan
13:20 28.03.2024
Azerbaijan weather forecast for March 29
Azerbaijan weather forecast for March 29
12:55 28.03.2024
Russian MFA concerned about upcoming Armenia-US-EU meeting
12:23 28.03.2024
Secret Points of Pashinyan's Meeting with French Representative: Is Peace Agreement Signing Imminent?
12:00 28.03.2024
Armenia announces recruitment of border guards to work at Zvartnots
Armenia announces recruitment of border guards to work at Zvartnots
11:47 28.03.2024
The US-Armenia-EU Joint Conference is a part of the pressure plan on Azerbaijan - MP Konul Nurullayeva
11:30 28.03.2024
Azerbaijan’s central bank reduces discount rate
Azerbaijan’s central bank reduces discount rate
11:23 28.03.2024
CSTO chief: ‘Yerevan doesn’t participate in our work, but there are no statements about suspension’
11:13 28.03.2024
Ammunition found in Khankandi
Ammunition found in Khankandi
11:00 28.03.2024
Russia had been aware of preparation for terrorist attack at Crocus - says intelligience chief
10:46 28.03.2024
Scholtz reveals date of his last telephone conversation with Putin
Scholtz reveals date of his last telephone conversation with Putin
10:33 28.03.2024
Head of the SSS: France is inciting Armenia to a new war
10:21 28.03.2024
Are we in the brink of World War III? - Pundit talks on Ednews
10:10 28.03.2024
Azerbaijan's National Security: Reflecting on 105 Years of Defending Sovereignty
09:55 28.03.2024
Hikmat Hajiyev: Rasmussen fell in forgetfulness to attach payment to his report
09:35 28.03.2024
Hand grenades found in Kalbajar
09:25 28.03.2024
Titanic 'door' prop that kept Rose alive sells for $718,750
Titanic 'door' prop that kept Rose alive sells for $718,750
08:50 28.03.2024
Twitch's biggest streamer diagnosed with cancer diagnosis at 32
23:55 27.03.2024
Azerbaijan's former Minister of National Security passes away
22:41 27.03.2024
Russia has no unfriendly states, only unfriendly elites — Putin
22:25 27.03.2024
Erdogan vows to make efforts for implementation of UN resolution regarding Gaza
Erdogan vows to make efforts for implementation of UN resolution regarding Gaza
21:44 27.03.2024
Hamısı