Boeing ousts CEO Dennis Muilenburg
Chicago, US - Dennis Muilenburg was ousted as chief executive officer of Boeing Co, a once-unthinkable turning point for a US industrial champion engulfed in turmoil after two deadly crashes of its 737 Max jetliner.
David Calhoun, who had served as chairman since October, will replace Muilenburg as CEO and president on January 13, Boeing said in a statement on Monday. The move followed a rare public rebuke December 12 by the US Federal Aviation Administration and a damaging two-day stint in October before Congress, where Muilenburg faced calls to resign from lawmakers and victims’ relatives.
CFO Greg Smith will serve as interim CEO during a brief transition period, and board director Larry Kellner will replace Calhoun as chairman.
Boeing is trying to regain its footing amid the Max grounding, one of the worst crises of the modern jet era. The planemaker’s reputation and finances have been battered after the Max disasters killed 346 people and prompted a worldwide grounding. Boeing’s design decisions and cozy relationship with the FAA are being scrutinised by Congress while the Justice Department is conducting a criminal probe.
‘The board of directors decided that 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,’ Boeing said.
Muilenburg’s departure caps an extraordinary fall from grace for a man who had dreamed of turning Boeing into a globally admired corporate paragon, much as Jack Welch did for GE. For two years as CEO, he seemed to have the Midas touch. Then a Lion Air 737 Max plunged into the Java Sea on October 29, 2018. While the plane’s design was largely set before Muilenburg became CEO, he bore responsibility for the company’s initial muted response - and the media firestorm that ensued when a second Max crashed less than five months later in Ethiopia. He would later describe the Max tragedies as the most difficult moments of a career spanning more than three decades, all at Boeing.