Boeing CEO and Chairman to Step Down in Wake of Safety Concerns | Business News
Boeing has announced that its chairman and chief executive are stepping down from their roles with a commitment to address the safety crisis facing the company.
The CEO, Dave Calhoun, who has served in the role for over three years, will be stepping down by the end of the year as part of a management restructuring.
Additionally, Stan Hope, the head of the commercial airlines division, will retire, and chairman Larry Kellner will step down from the board.
These changes come amid mounting pressure from Boeing’s customers, including Ryanair, due to ongoing safety issues leading to delays in plane orders.
Boeing CEO Dave Calhoun said he would play a role in the appointment of his successor
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Airlines have faced significant disruptions due to issues with the 737 MAX aircraft variants.
The grounding of the MAX 8 fleet globally for nearly two years following two fatal crashes, resulting in 346 fatalities, has been attributed to faulty flight control software.
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What’s going on at Boeing?
The aviation industry’s recovery in 2021 was hindered by reduced demand for international travel due to the COVID pandemic.
In January this year, Boeing’s safety record was once again scrutinized following a panel blowout on a 737 MAX 9 plane at 16,000 feet, leading to an emergency landing.
Read more:
Ryanair boss declares passengers are safe despite Boeing issues
Boeing axes 737 MAX chief after mid-air scare
US regulator increases oversight of Boeing
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US aviation regulators have imposed strict production limits on Boeing to ensure confidence in its manufacturing quality.
Chief financial officer Brian West stated last week, “For years, we prioritised the movement of the airplane through the factory over getting it done right, and that’s got to change.”
Ryanair CEO Michael O’Leary, who had previously criticized Boeing’s quality control, welcomed the management changes and expressed optimism for future collaborations.
Boeing investors responded positively to the announcements, with shares rising by 4%.
Mr Calhoun told CNBC that it was his decision to step down and emphasized his role in choosing his successor.
In an email to Boeing employees, he assured them of the company’s commitment to safety and quality amid ongoing challenges.
