In a significant leadership overhaul, Boeing CEO Dave Calhoun has announced his departure at the end of 2024, marking a pivotal moment for the aerospace titan as it grapples with the aftermath of the 737 Max crisis. This announcement comes alongside the news that Larry Kellner, chairman of the board, will not seek reelection in May, and Stan Deal, president and CEO of Boeing’s commercial airplanes unit, has left the company effective immediately.
The management shake-up is a response to the increasing demands from airlines and regulators for sweeping changes at Boeing following a series of quality and manufacturing issues. The urgency for transformation was underscored by the January 5 incident involving an Alaska Airlines flight where a door plug detached from a Boeing 737 Max 9 shortly after takeoff.
Calhoun, who took the helm in early 2020 following the ousting of former CEO Dennis Muilenburg, has been at the forefront of Boeing’s efforts to navigate through its quality control challenges. In a message to employees, Calhoun emphasized the need for humility and transparency, stating, “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 CEO’s departure is part of a broader strategy to restore confidence in Boeing’s commitment to safety and quality. Calhoun’s tenure has been marked by promises to investors, airline customers, and the public that Boeing would address its quality struggles. The Federal Aviation Administration (FAA) has increased its oversight of Boeing, and following the Alaska Airlines incident, declared that Boeing would be barred from increasing 737 production until it is satisfied with the company’s quality control measures.
The reshuffle also sees Stephanie Pope, who recently became Boeing’s chief operating officer, stepping into Deal’s role. Pope’s appointment is a significant move, as she brings a wealth of experience from her previous role leading Boeing Global Services.
Steve Mollenkopf, a Boeing director since 2020 and former CEO of Qualcomm, is set to succeed Kellner as chairman. Mollenkopf’s leadership will be crucial as he guides the board in selecting a new CEO to steer Boeing into its next chapter.
The changes at the top have been met with a mixed reaction from the industry. Ryanair, one of Boeing’s largest customers in Europe, welcomed the management changes, with CEO Michael O’Leary stating that while Deal has been great for sales, he was not the right person to address operational issues in Seattle.
The leadership transition occurs against the backdrop of Boeing’s stock performance, which has seen a decline of 26% this year. The company faces the challenge of rebuilding its reputation, ensuring the safety of its aircraft, and satisfying the demands of its customers who have been vocal about production delays.
Boeing begins this period of transformation, and the focus remains on the company’s ability to implement the necessary changes to regain the trust of the flying public and its industry partners. The road ahead will require a steadfast commitment to safety, quality, and operational excellence, as the world watches closely to see how Boeing emerges from this pivotal moment in its history.
