Boeing CEO Dave Calhoun, along with the company’s chairman Larry Kellner and the head of the commercial airplane unit Stan Deal, have all announced their departures from the company. The shakeup in leadership comes after years of problems for Boeing, including the fatal crashes of the 737 Max and other safety issues that have led to billions of dollars in losses. Calhoun called the recent incident involving an Alaska Airlines 737 Max a “watershed moment” for the company.
Critics have been vocal about Calhoun’s leadership and the string of safety and quality issues at Boeing. CEOs of major airlines that are Boeing customers have expressed disappointment with the quality of planes received and delays in deliveries. The recent incident involving the Alaska Airlines 737 Max has added to the concerns of customers, with United Airlines considering alternative options for aircraft purchases due to Boeing’s inability to deliver the planes they were counting on.
The challenges faced by airlines in shifting between Boeing and Airbus aircraft include added costs, training requirements for pilots, and the need to keep spare parts for both manufacturers. Despite the issues, the Boeing 737 Max 9 was grounded for three weeks for inspections after the Alaska Air incident, and the FAA found non-compliance issues in Boeing procedures. The company is also facing an investigation by the Justice Department that could have serious implications.
Calhoun, who has been at the helm of Boeing since 2020, has had to navigate through various issues during his tenure, including the grounding of the 737 Max and quality problems with other planes like the 787 Dreamliner. Critics argue that Boeing’s focus on financial performance over engineering excellence has led to a decline in the company’s reputation in recent years. Calhoun, who lacks an engineering background, is set to leave the company by the end of the year.
Boeing’s search for a new CEO will focus on finding someone with experience in handling a complex long-cycle business like theirs. The company is looking to invest $50 billion in the development of the next airplane, and they need a leader who can navigate the challenges ahead. Despite the turmoil in the company’s leadership, Boeing’s stock rose 4% following the announcement of the leadership changes. The future of Boeing remains uncertain as they work to address safety and quality issues and regain the trust of their customers.
