Boeing ousts its CEO amidst a series of industrial setbacks and investigations

Following two fatal crashes of Boeing 737 MAX jetliner that triggered a series of industrial setbacks and severe investigations, Boeing announced the departure of its CEO, Dennis Muilenburg, on Monday.

Boeing is amidst a myriad of challenges since the start of 2019. 737 MAX marked the best-selling jetliner for the largest plane maker across the globe. Following two of its planes crashing within a short period of five months, the company has failed to get regulatory approval for its 737 MAX jetliner. Boeing is also struggling to win the trust and mark of reliability from the passengers.

As per Monday’s announcement, the company found it necessary to opt for a new leader in order to improve its chances of mending relationships with customers, stakeholders, and regulators. The decision of ousting the current CEO came from a consensus among the Board of Directors.

Boeing Gained 2% In The Stock Market In Early Session On Monday

In hopes that the new leadership will help pull the American plane manufacturer out of the crisis, Boeing’s stock gained 2% in early session on Monday. Trading around $336 currently, the stock has dropped by over 20% since March 2019 when the second 737 Max airplane crashed, causing multiple casualties.

The statement also divulged that moving forward, the current Chairman, David Calhoun, will be assuming the role of the company’s president and Chief Executive Officer. The new CEO will take over on January 13^th.

During Muilenburg’s tenure that spanned over 34 years at Boeing, the grounding of 737 MAX jetliner was the largest crisis he faced. Muilenburg had joined Boeing in 1985 as an intern. With utter commitment, he was able to navigate through the company’s ranking system to win the position of CEO in 2015.

Boeing To Suspend 737 MAX Production In January

In a separate statement, Boeing also expressed plans of temporarily suspending the 737 MAX jetliner’s production in January. The decision was triggered by the Federal Aviation Administration (FAA) announcement that the airworthiness certification for 737 MAX is not expected anytime soon as in light of public safety, the administration wishes to take its time and perform thorough testing and evaluation before the jetliner can be opened to public again.

An imminent ousting for Muilenburg has been the talk of the industry for a few months. Following his departure as the chairman of the company in October, expectations intensified that he may also be stripped of his other title in the upcoming months.

The company also added that Lawrence Kellner has been promoted from a member of the board to its non-executive chairman effective immediately. During the transition period that the board wishes to keep brief, CFO Greg Smith will take over as an interim CEO of the company.