Boeing chief executive Dennis Muilenburg has resigned with immediate effect following two fatal 737 Max crashes.
Current Boeing chair David Calhoun will replace Mr Muilenburg as chief executive and president from 13 January, while board member Lawrence Kellner will become chair, the plane-maker announced yesterday. Shares jumped 2.7 per cent following the news.
Last week, Boeing announced that it would suspend production of the 737 Max aircraft involved in two tragedies which cost a total of 346 lives. The plane was grounded worldwide in March, days after an Ethiopian Airlines Boeing 737 Max crashed in similar circumstances to a Lion Air aircraft the previous October.
Since the grounding, the US aircraft manufacturer has continued to build its best-selling plane at a slightly reduced rate. Boeing has more than 4,500 of the twin jets on order. For the past nine months, it has been seeking to fix anti-stall software known as the Maneuvering Characteristics Augmentation System. In both fatal crashes, the system forced the nose of the aircraft down despite the pilots’ efforts to overcome it.
In October, Mr Muilenburg was quizzed at the US congress about the two fatal crashes. Boeing said a “change in leadership was necessary to restore confidence in the company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders”.
With new leadership, the US plane-maker said it would make a “renewed commitment to full transparency, including effective and proactive communication with the [US Federal Aviation Administration], other global regulators and its customers”. “On behalf of the entire board of directors, I am pleased that Dave has agreed to lead Boeing at this critical juncture,” Mr Kellner said.
He added: “Dave has deep industry experience and a proven track record of strong leadership, and he recognises the challenges we must confront. The board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company.”
Mr Calhoun said, “I strongly believe in the future of Boeing and the 737 Max. I am honoured to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation.”