Boeing CEO Calhoun to Step Down

( – On Monday, March 25, Boeing revealed that its CEO, Dave Calhoun, will retire by the end of the year. This announcement comes alongside news of multiple plane accidents caused by ongoing challenges with production and quality control. Notably, one of its 737 MAX 9 planes, which was operated by Alaska Air, lost a panel mid-flight.

Calhoun’s announcement also follows Boeing’s prediction of spending nearly $5 billion this quarter to better address and fix any issues that their planes are having. Calhoun described the Alaska Air incident as a defining moment for Boeing and expressed confidence in the company’s resilience.

Additionally, Larry Kellner, the current board chairman, will not seek re-election within the company. Stan Deal, CEO of the Commercial Airplanes segment, is also set to retire. Steve Mollenkopf will lead the new CEO search.

Calhoun assumed the CEO role in 2020 amid the aftermath of two 737 MAX crashes in 2017 that claimed over 300 lives. During his tenure, he oversaw the suspension of 737 production. The Federal Aviation Administration (FAA) eventually lifted its grounding order in November 2020.

However, Boeing faced further challenges. These peaked after the company paid out a $2.5 billion settlement with the DOJ over deceiving the FAA about the 737 Max’s functionality. Despite efforts to enhance safety and production, more issues arose in 2023. These included improperly drilled holes and loose hardware.

The Alaska Airlines incident triggered additional investigations and a criminal probe. While Boeing aimed to improve safety protocols under Calhoun’s leadership, these ongoing challenges led to his decision to step down.

Despite this, Boeing stock saw an increase after Calhoun’s announcement. His departure signals a need for Boeing to address its issues as soon as possible. As summer approaches, more people will be flying, and consumer safety is paramount for any airplane company.

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