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Boeing CEO to resign as 737 Max crisis weighs on aerospace giant

Boeing CEO Dave Calhoun speaks to reporters as he departs from a meeting in Sen. Mark Warner's (D-Va.) office at the Capitol on January 24, 2024 in Washington, DC.

Anna Moneymaker | Getty Images

boeing CEO dave calhoun He is scheduled to step down at the end of 2024 as part of a broader management overhaul at the beleaguered aerospace giant.

Boeing announced Monday that Larry Kellner, chairman of the company's board of directors, will not run for re-election at Boeing's annual meeting in May. He will be replaced as chairman by Steve Mollenkopf, former CEO of Qualcomm and a member of Boeing's board of directors since 2020. Boeing said Mollenkopf will lead the board of directors in selecting a new CEO.

And Stan Diehl, president and chief executive officer of Boeing's commercial aircraft division, is leaving the company effective immediately. Moving into his job is Stephanie Pope, who recently became Boeing's chief operating officer after previously running Boeing Global Services.

The departures come as airlines and regulators are increasingly calling for major reforms at the company after a number of quality and manufacturing defects in Boeing planes have been found.Surveillance increased after the incident Accident on January 5thwhen a door plug blew out after nine minutes from a nearly new Boeing 737 Max. alaska airlines Flight.

“As you all know, Alaska Airlines Flight 1282 was a watershed moment for Boeing,” Calhoun said in a letter to employees Monday. “We must continue to respond to this incident with humility and full transparency, and instill a strong commitment to safety and quality at every level of our company.”

“The world's eyes are on us, and we are confident that we will emerge from this moment as a better company, building on all the learnings we have accumulated over the past several years as we helped rebuild Boeing.” “We are doing so,” he wrote.

Calhoun said in an interview with CNBC on Monday that his decision to resign was “100 percent” his own.

“We have another mountain to climb,” Calhoun said. “Don't avoid the call to action. Don't avoid the changes that need to be made in the factory. Don't avoid the need to slow down a little bit and let the supply chain catch up.”

calhounHe took the top job at Boeing in January 2020 after leaving the company, where he served as a director for more than a decade. exiled Former CEO Dennis Muilenburg praised the company's response to the aftermath of two deadly 737 Max crashes.

For months, Mr. Calhoun has promised investors, airline customers and the general public that he would bring Boeing's myriad quality struggles under control.The US Federal Aviation Administration is increasing its oversight of Boeing, and following the Alaska Airlines accident, Federal Aviation Administration Administrator Mike Whitaker said Boeing would continue to Increased production of the 737 is prohibited. Until the FAA was satisfied with the company's quality control.

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Boeing's production problems are delaying deliveries of new aircraft to customers and hampering its growth plans. Including his CEO of the company's largest customer. united airlines, southwest airlines and american airlines Publicly complained about the delays.

Ryanair, Boeing's largest airline customer in Europe, said in a statement on Monday that it welcomed the change in management.

Ryanair CEO Michael O'Leary said: “Stan Diehl has been a great salesman for Boeing for many years, but he is not the type of person to turn around the Seattle business. That's where most of the problems lie.” Video posted on social media platform X.

Earlier this month, United Airlines CEO Scott Kirby told Boeing that it would not be able to purchase Max 10 aircraft that have not yet been certified for the company, as it is unclear when the FAA will issue permission to fly these aircraft. He said that he had requested that the production of the product be discontinued.

Airline CEOs last week scheduled a meeting with Boeing directors to voice their dissatisfaction with a lack of manufacturing quality control and lower-than-expected production of the 737 Max. started to set up. The meeting was to be attended by Mr. Kellner and one or more other board members.

Also last week, Boeing Chief Financial Officer Brian West said at an industry conference that Boeing: spend more cash The limited production of the 737 Max exceeded expectations.

Boeing stock rose 1.4% on Monday following the announcement. The company's stock price has fallen more than 26% since the beginning of the year.

Don't miss the next story from CNBC PRO.

Watch CNBC's full interview with Boeing CEO Dave Calhoun.

Summarize this content to 100 words Boeing CEO Dave Calhoun speaks to reporters as he departs from a meeting in Sen. Mark Warner's (D-Va.) office at the Capitol on January 24, 2024 in Washington, DC. Anna Moneymaker | Getty Imagesboeing CEO dave calhoun He is scheduled to step down at the end of 2024 as part of a broader management overhaul at the beleaguered aerospace giant.Boeing announced Monday that Larry Kellner, chairman of the company's board of directors, will not run for re-election at Boeing's annual meeting in May. He will be replaced as chairman by Steve Mollenkopf, former CEO of Qualcomm and a member of Boeing's board of directors since 2020. Boeing said Mollenkopf will lead the board of directors in selecting a new CEO.And Stan Diehl, president and chief executive officer of Boeing's commercial aircraft division, is leaving the company effective immediately. Moving into his job is Stephanie Pope, who recently became Boeing's chief operating officer after previously running Boeing Global Services.The departures come as airlines and regulators are increasingly calling for major reforms at the company after a number of quality and manufacturing defects in Boeing planes have been found.Surveillance increased after the incident Accident on January 5thwhen a door plug blew out after nine minutes from a nearly new Boeing 737 Max. alaska airlines Flight.”As you all know, Alaska Airlines Flight 1282 was a watershed moment for Boeing,” Calhoun said in a letter to employees Monday. “We must continue to respond to this incident with humility and full transparency, and instill a strong commitment to safety and quality at every level of our company.”“The world's eyes are on us, and we are confident that we will emerge from this moment as a better company, building on all the learnings we have accumulated over the past several years as we helped rebuild Boeing.” “We are doing so,” he wrote.Calhoun said in an interview with CNBC on Monday that his decision to resign was “100 percent” his own.”We have another mountain to climb,” Calhoun said. “Don't avoid the call to action. Don't avoid the changes that need to be made in the factory. Don't avoid the need to slow down a little bit and let the supply chain catch up.”calhounHe took the top job at Boeing in January 2020 after leaving the company, where he served as a director for more than a decade. exiled Former CEO Dennis Muilenburg praised the company's response to the aftermath of two deadly 737 Max crashes.For months, Mr. Calhoun has promised investors, airline customers and the general public that he would bring Boeing's myriad quality struggles under control.The US Federal Aviation Administration is increasing its oversight of Boeing, and following the Alaska Airlines accident, Federal Aviation Administration Administrator Mike Whitaker said Boeing would continue to Increased production of the 737 is prohibited. Until the FAA was satisfied with the company's quality control.Stock chart iconStock chart iconComparison of Boeing stock price and S&P 500Boeing's production problems are delaying deliveries of new aircraft to customers and hampering its growth plans. Including his CEO of the company's largest customer. united airlines, southwest airlines and american airlines Publicly complained about the delays.Ryanair, Boeing's largest airline customer in Europe, said in a statement on Monday that it welcomed the change in management.Ryanair CEO Michael O'Leary said: “Stan Diehl has been a great salesman for Boeing for many years, but he is not the type of person to turn around the Seattle business. That's where most of the problems lie.” Video posted on social media platform X.Earlier this month, United Airlines CEO Scott Kirby told Boeing that it would not be able to purchase Max 10 aircraft that have not yet been certified for the company, as it is unclear when the FAA will issue permission to fly these aircraft. He said that he had requested that the production of the product be discontinued.Airline CEOs last week scheduled a meeting with Boeing directors to voice their dissatisfaction with a lack of manufacturing quality control and lower-than-expected production of the 737 Max. started to set up. The meeting was to be attended by Mr. Kellner and one or more other board members.Also last week, Boeing Chief Financial Officer Brian West said at an industry conference that Boeing: spend more cash The limited production of the 737 Max exceeded expectations.Boeing stock rose 1.4% on Monday following the announcement. The company's stock price has fallen more than 26% since the beginning of the year.Don't miss the next story from CNBC PRO.
https://www.cnbc.com/2024/03/25/boeing-ceo-board-chair-commercial-head-out-737-max-crisis.html Boeing CEO to resign as 737 Max crisis weighs on aerospace giant

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