Boeing CEO will resign as part of leadership overhaul

Boeing said Monday it was overhauling its leadership amid its most significant safety crisis in years, announcing changes that included the departure of CEO Dave Calhoun at the end of the year.

The aircraft-maker has been under mounting pressure from regulators, airlines and passengers as the company struggled to respond to the fallout from an incident in January in which a panel blew off a Boeing 737 Max 9 plane in midair during an Alaska Airlines flight.

The incident has roiled the company and renewed concerns about its commitment to safety and quality five years after two crashes of 737 Max 8 planes killed a total of nearly 350 people.

In addition to Calhoun’s departure, Boeing announced Stan Deal, head of the division that makes planes for airlines and other commercial customers, will retire immediately. He will be replaced by Stephanie Pope, Boeing’s chief operating officer, the company said in a statement.

Boeing also announced its chairman, Larry Kellner, would not stand for reelection.

The board this weekend elected Steve Mollenkopf, an electrical engineer by training and the former CEO of Qualcomm, as its new chair. In that role, he will lead the process of choosing Boeing’s next CEO.

The Federal Aviation Administration, which regulates the company, grounded 737 Max 9 planes across the United States after the Alaska Airlines incident. A recent FAA audit of Boeing’s Max production found dozens of lapses.

The agency gave Boeing 90 days, or until about late May, to address its issues. The Justice Department has also reached out to passengers of the Alaska Airlines flight, informing them they may be a “possible victim of a crime,” according to a copy of one such notification.

Airline leaders publicly expressed frustration with the manufacturer after the incident.