Boeing CEO Dave Calhoun to step down

Boeing (BA) CEO Dave Calhoun will step down on the finish of the yr, the corporate introduced Monday.

Calhoun’s departure comes because the planemaker has handled a raft of manufacturing and high quality management points this yr, most notably when one in all its 737 MAX 9 planes flown by Alaska Air misplaced a panel in mid-flight again in January.

Final week, Boeing CFO Brian West stated the corporate would see money outflows of as much as $4.5 billion in the course of the present quarter as it really works to shore up its manufacturing strains.

Boeing inventory rose as a lot as 2.5% following the information. By Friday’s shut, the inventory had misplaced greater than 27% this yr.

The corporate additionally introduced Monday that Larry Kellner, chairman of its board, is not going to stand for re-election on the firm’s upcoming annual shareholders assembly. Steve Mollenkopf, the previous CEO of Qualcomm and a Boeing board member since 2020, will exchange Kellner and lead the corporate’s seek for its subsequent CEO. Boeing additionally stated Stan Deal, at present CEO of its Business Airplanes phase, will retire.

PORTLAND, OREGON - JANUARY 7: In this National Transportation Safety Board (NTSB) handout, an opening is seen in the fuselage of Alaska Airlines Flight 1282 Boeing 737-9 MAX on January 7, 2024 in Portland, Oregon. A door-sized section near the rear of the Boeing 737-9 MAX plane blew off 10 minutes after Alaska Airlines Flight 1282 took off from Portland, Oregon on January 5 on its way to Ontario, California.  (Photo by NTSB via Getty Images)

On this Nationwide Transportation Security Board (NTSB) handout, a gap is seen within the fuselage of Alaska Airways Flight 1282 Boeing 737-9 MAX on January 7, 2024 in Portland, Oregon. (Photograph by NTSB through Getty Photos) (Handout through Getty Photos)

In a letter to workers on Monday, Calhoun stated the Alaska Air incident, “was a watershed second for Boeing.”

“The eyes of the world are on us,” Calhoun added, “and I do know we’ll come via this second a greater firm, constructing on all of the learnings we amassed as we labored collectively to rebuild Boeing over the past variety of years.”

Calhoun was named Boeing CEO again in January 2020 as the corporate grappled with repercussions following the crash of two 737 MAX jets — a Lion Air flight in October 2018 and an Ethiopia Airways flight in March 2019. These crashes collectively resulted within the demise of 346 individuals.

In his letter, Calhoun stated he’d been weighing a call to step down for “a while.”

Boeing CEO Dave Calhoun is departing a meeting with Senator Tammy Duckworth (D-IL) in the Hart Senate Office Building, on Capitol Hill in Washington, D.C., on January 25, 2024, as Boeing is dealing with the fallout of multiple recent safety mishaps, including a door blowing out mid-flight. (Photo by Aaron Schwartz/NurPhoto via Getty Images)

Boeing CEO Dave Calhoun is departing a gathering with Senator Tammy Duckworth (D-IL) within the Hart Senate Workplace Constructing, on Capitol Hill in Washington, D.C., on January 25, 2024, as Boeing is coping with the fallout of a number of latest security mishaps, together with a door blowing out mid-flight. (Photograph by Aaron Schwartz/NurPhoto through Getty Photos) (NurPhoto through Getty Photos)

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