Chief Executive Dennis Muilenburg has been dismissed from his position after failing to handle the fatal crashes’ aftermath that have halted output of its best-selling jetliner and have marred its reputation with airlines and regulators.
Chief Financial Officer Greg Smith will run the world’s largest planemaker until January 13 when David Calhoun assumes CEO and president position. Calhoun is a former General Electric executive and member of the Boeing board since 2009,
Hurt by one setback after another, Boeing had to let Muilenburg go as it has become evident how he seemed indecisive in resolving their US$59 worth current crisis. Consequently, it has hurt suppliers and airlines and has now threatened to cut the pace of US economic growth.
The decision was made over the weekend and has unfortunately ousted Muilenburg through a phone call. The board of directors decided that a change in leadership was necessary to restore confidence
While Muilenburg could not be reached for comment, Boeing shares dropped 20% over nine months.
After the Indonesia and Ethiopia crash in March that killed 346 people, the 737 Max has been grounded.
Boeing has struggled to mend relations with the US and international regulators as it looks into getting the jet back into flight.
400 planes were ready to return to flight but Boeing acknowledged that they won’t be able to reach its target of flying this year. Production will resume tentatively as 737 suppliers will also be suspended for a month starting mid-January. US economic growth will have a share in this setback as its economic growth is decreased by half a percentage point.
It has already been a dramatic following of events as Boeing vied for leadership for Europe’s Airbus They reached a decision to halt production of the MAX, the rating decline and also a space launch glitch on Friday.
Federal Aviation Administration confirmed that it received a new batch of documents from Boeing and was reviewing them. Moreover, there was a statement saying that the new submission contained instant messages from a former Boeing senior pilot Mark Forkner.
2016 messages between Forkner and another pilot were also turned over to the FAA stating that the pilot might have intentionally misled the FAA and have instead raised questions about the performance of a key safety system during tasting.
Based on Boeing securities filings, Muilenburg may be eligible for nearly US$39 million in severance. Boeing remains mum as to whether he would accept it or not.