Boeing, the embattled aerospace giant, is undergoing a major management shakeup with CEO Dave Calhoun set to step down at the end of 2024. The company’s Chairman of the Board, Larry Kellner, is also resigning and will be leaving the board at Boeing’s annual meeting in May. This move comes amidst increasing pressure from airlines and regulators for significant changes at Boeing, following a series of quality and manufacturing issues with Boeing planes.
Steve Mollenkopf has taken over as the new Chairman of the Board, replacing Kellner. Meanwhile, Stan Deal, the President and CEO of Boeing Commercial Airplanes, has left the company with immediate effect. Stephanie Pope, who recently assumed the role of Boeing’s Chief Operating Officer, has been appointed as the new head of Boeing Commercial Airplanes. These changes are aimed at addressing the growing concerns about safety and quality standards at Boeing.
The recent incident involving an Alaska Airlines flight, where a door plug blew out of a Boeing 737 Max 9, has further intensified scrutiny on the company. In a communication to employees, Calhoun emphasized the need for humility, transparency, and a renewed commitment to safety and quality at all levels of the company. The focus is on rebuilding trust and ensuring that Boeing emerges from this challenging period as a stronger and more reliable company.
Airline CEOs have been actively engaging with Boeing directors to express their dissatisfaction with the lack of manufacturing quality controls and the production issues related to 737 Max planes. Calhoun has been adamant about addressing these concerns and has assured investors, customers, and the broader public that Boeing is committed to resolving its quality struggles. The company has been on a journey to rebuild its reputation ever since the ousting of its previous CEO, Dennis Muilenburg, in 2019.
The aerospace industry is closely watching Boeing’s ongoing transformation. As one of the leading players in the industry, Boeing’s ability to address its current challenges and institute lasting changes will have far-reaching implications. The company’s commitment to safety, quality, and transparency will be critical in rebuilding trust with airlines, regulators, and the general public. The upcoming years will be crucial for Boeing as it navigates through this period of transition and works towards regaining its position as a trusted and reliable aircraft manufacturer.