Boeing Ousts CEO Muilenburg Amid Ongoing 737 Max Crisis
Boeing replaces CEO Dennis Muilenburg with Chairman David Calhoun as the company struggles to fix its damaged reputation following two fatal 737 Max crashes.
Boeing ousts CEO Dennis Muilenburg as the company battles the severe fallout from the 737 Max crisis. Chairman David Calhoun takes over as the new chief executive on January 13 to help the manufacturer rebuild trust with regulators, airline customers, and the public following two fatal crashes that claim 346 lives.
The leadership shakeup occurs because Boeing repeatedly fails to meet its own unrealistic timelines for returning the grounded jets to service. The Federal Aviation Administration publicly reprimands the company for applying pressure and lacking transparency, while airlines lose millions of dollars and rework their flight schedules well into 2020.
Boeing acknowledges that a change in leadership is necessary to restore confidence in the brand. The board promises a renewed commitment to full transparency and proactive communication with global regulators, though Muilenburg departs with a potential severance package worth around $39 million.