Boeing announced the departure of CEO Dave Calhoun amidst a safety crisis triggered by a 737 MAX plane incident in January.
Stan Deal, President and CEO of Boeing Commercial Airplanes, will retire, with Stephanie Pope stepping into his role. The company has appointed Steve Mollenkopf, ex-CEO of Qualcomm, as the board’s new chair to oversee the search for Calhoun’s successor.
The leadership transition comes after a safety episode with an Alaska Airlines-operated MAX 9 jet, which exacerbated the aerospace giant’s safety and reputation concerns and impacted its stock value. Though there’s been a minor rebound in shares, the incident underscores ongoing safety challenges during Calhoun’s tenure, which began following two devastating crashes in 2018 and 2019.
Amid these challenges, Boeing is under heavy regulatory scrutiny, leading to restricted production as it strives to address safety and quality issues. Efforts to regain control over its supply chain include potential discussions to reacquire Spirit AeroSystems.
Analysts see the restructuring as a positive step, stressing the need to change Boeing’s corporate culture. There’s speculation around Patrick Shanahan of Spirit AeroSystems as a potential candidate to lead Boeing through its complex recovery process.
Following the January incident, the FAA has imposed production limits on Boeing, highlighting the company’s operational hurdles. CFO Brian West recently admitted that the company prioritized production speed over quality, a practice Boeing seeks to revise.
As Boeing works through these challenges, its competitor Airbus is capitalizing on the situation, securing orders and indicating the industry’s growing concern about Boeing’s stability.
