Boeing Management Overhaul: CEO Dave Calhoun To Step Down Amid Safety Concerns Involving 737 MAX

Apart from CEO Dave Calhoun, Boeing Chairman Larry Kellner and Stan Deal, head of the commercial airplanes division, are also stepping down from their positions

Dave Calhoun will depart from the company at the end of 2024, as per company statement.

Boeing Co. announced a series of leadership changes on Monday in response to the ongoing crisis surrounding its flagship product, the 737 MAX jetliner. Company’s Chief Executive Officer (CEO) Dave Calhoun, Chairman Larry Kellner, and Stan Deal, head of the commercial airplanes division, are all stepping down from their positions.

According to a statement released by Boeing, Calhoun will depart from the company at the end of 2024, while Kellner will not seek re-election. Deal will retire immediately, with Chief Operating Officer Stephanie Pope set to assume his responsibilities.

Calhoun, a seasoned figure with a background in General Electric Co. and Blackstone Group LP, is leaving amidst the fallout from multiple crises involving the 737 MAX, Boeing's best-selling aircraft.

The leadership changes come amid mounting dissatisfaction from customers towards Calhoun and Deal, amidst ongoing concerns regarding Boeing's manufacturing quality and safety. This concern escalated further following an incident in January where a fuselage panel blew out of an airborne 737 MAX.

The US Federal Aviation Administration's extensive audit of Boeing and its suppliers has also raised alarms regarding the company's safety culture, indicating the depth of the challenges Boeing faces.

Despite the turmoil, Boeing's shares experienced a 2 per cent increase as of March 25 (Monday), ahead of regular trading in New York. This comes after a significant decline earlier in the year, with Boeing's stock being the poorest performer in the Dow Jones Industrial Average, having dropped by 28 per cent.

Under Calhoun's leadership, Boeing managed to return the 737 MAX to commercial service in 2020 after a prolonged global grounding due to two successive accidents. However, a recent incident involving an Alaska Airlines 737 MAX 9 losing a fuselage panel in mid-air has once again thrown the company into disarray, just as it was beginning to rebuild its reputation.