Home Economy Boeing CEO resigns and company names David Calhoun as successor

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Boeing CEO resigns and company names David Calhoun as successor

by ace
Boeing CEO resigns and company names David Calhoun as successor

economy

11:19 23.12.2019 (updated 13:03 27.12.2019) Short URL

CEO of US Boeing aircraft maker Dennis Muilenburg resigns amid scandal over the 737 MAX aircraft. According to the statement on the company's website, his successor will be David L. Calhoun.

The new management's mission is "the safe return of the 737 MAX (aircraft)" to flights, the company said.

"The company also announced that Dennis A. Muilenburg has resigned as CEO and board director with immediate effect," Boeing said.

The report clarifies that the change in company leadership was needed to "restore confidence" in the automaker and "repair relationships with regulators, customers" and other stakeholders.

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                    REUTERS Lindsey wasson

Overhead view of 737 MAX model aircraft unable to operate, stationed at US airport, September 2019

The company announces that the company's chief financial officer, Greg Smith, will hold the position of CEO during the brief transition period until Calhoun takes office.

"I have full confidence in the future of Boeing and the 737 MAX. I am honored to lead this great company and its 150,000 dedicated employees," Calhoun said, according to a Boeing press officer.

According to AFP, Boeing shares rose 2.7 percentage points following the announcement of Muilenburg's departure. Last week, the company's stock had plummeted 4 percent following announcements that production of the 737 MAX would be halted.

Crisis in the company

Boeing faces a severe crisis since two air crashes involving its 737 MAX aircraft resulted in hundreds of casualties. On the other hand, problems with the company's new spacecraft, Starliner, have exposed problems with the company's management model.

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                    REUTERS / Jim Young

The resignation of former Boeing CEO Dennis Muileburg was announced on Monday by the company's spokesperson.

The spacecraft was launched on Friday (20) in unmanned mode of Cape Canaveral air base (US). During the flight, an emergency situation was identified due to a failure of the flight time counting system.

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