Boeing CEO Dave Calhoun announced on Monday (March 25) his intentions to leave the airplane manufacturer at the end of the year. Boeing's chairman and the head of the commercial airplane unit are also stepping down from their positions.
Boeing's chairman, Larry Kellner, will not stand for re-election as a board director and will be succeeded instead by the former Qualcomm CEO, Steve Mollenkopf.
Highlights
- Boeing CEO Dave Calhoun to leave by end of year amid concerns for planes’ quality.
- Calhoun called the recent incident with an Alaska Airlines 737 Max "a Watershed moment'."
- Five years ago, two Boeing planes were lost in almost identical accidents that cost 346 lives.
Furthermore, Stan Deal, CEO of Boeing Commercial Airplanes, is retiring. Stephanie Pope, Boeing's chief operating officer since January, is set to take his place immediately.
The move comes two months after an Alaska Airlines 737 Max aircraft lost a door mid-flight, leaving passengers close to a gaping hole and forcing an emergency landing at Portland International Airport.
Image credits: Bloomberg Television
In a preliminary investigation, US regulators found that four critical bolts meant to hold the so-called door plug in place were missing from the aircraft, according to the BBC.
Following the incident—which resulted in no fatalities—seven passengers filed a lawsuit against Boeing, Alaska Airlines, and aerostructure manufacturer Spirit AeroSystems.
In a letter to Boeing employees shared on Monday, Calhoun called the Alaska Airlines incident "a Watershed moment for Boeing."
"We must continue to respond to this accident with humility and complete transparency. We also must inculcate a total commitment to safety and quality at every level of our company," the text reads.
"The eyes of the world are on us," Calhoun wrote, announcing his departure plans. "We are going to fix what isn't working, and we are going to get our company back on the track towards recovery and stability."
"I am confident that the way we have confronted these challenges, and how we are responding to this specific moment, is establishing standards for future generations of employees and will be woven into the fabric of how we operate for decades to come."
In a letter to Boeing employees, Calhoun referred to the Alaska Airlines incident as a "Watershed moment" for the airplane manufacturer
Image credits: CNBC Television
Earlier this month, the FAA (Federal Aviation Administration) revealed that a six-week audit of the 737 Max production process at Boeing had found "multiple instances where the companies failed to comply with manufacturing quality control requirements."
The most significant Boeing scandal took place five years ago when two of its brand-new 737 Max planes were lost in almost identical accidents that cost 346 lives.
The company was accused of concealing information from safety officials about changes to an automated flight control system known as MCAS.
Ultimately, Boeing agreed to pay $2.5bn to settle fraud charges and admitted deception, though it formally pleaded not guilty in court hearings.
Social media users were not too surprised by the news
The airlines that purchase Boeing's planes have recently raised concerns regarding the quality of the aircrafts.
Michael O'Leary, CEO of the low-cost carrier Ryanair, which flies only Boeing 737 planes, said that the company spent 48 hours going through the company's planes, checking them for errors or omissions.
While they haven't found anything alarming during the checks, O'Leary revealed that they regularly deal with minor problems, such as tools under floorboards and missing seat handles. According to the CEO, this shows "a lack of attention to detail quality issues in Boeing."
Meanwhile, United Airlines, which flies Boeing jets for more than 80% of its mainline fleet, has expressed disappointment in quality issues at Boeing and a delay in its scheduled deliveries, as per CNN.
Whistleblower John Barnett, who worked at Boeing’s factory in South Carolina from 2010 until his retirement in 2017, claimed the rush to build planes as quickly as possible in order to maximize profits was prioritized over passenger safety.
The former quality-control engineer was found dead with a self-inflicted wound before the second part of his testimony for a bombshell lawsuit against the aerospace giant’s production line on March 9.
Shares of Boeing jumped 4% in pre-market trading following the news of Calhoun's resignation, CNN reports.
The 66-year-old, who has no engineering background, became CEO of the company in January 2020.
People agreed with Calhoun's decision
