FILE - In this Oct. 29, 2019, file photo Boeing Company President and Chief Executive Officer Dennis Muilenburg appears before a Senate Committee on Commerce, Science, and Transportation hearing on ‘Aviation Safety and the Future of Boeing’s 737 MAX’ on Capitol Hill in Washington. Muilenburg is resigning amid ongoing problems at the company over the troubled Max 737 aircraft. The board of directors said Monday, Dec. 23 that Muilenburg is stepping down immediately. The board’s current chairman David Calhoun will become president and CEO on Jan. 13, 2020. (AP Photo/Andrew Harnik, File)

FILE - In this Oct. 29, 2019, file photo Boeing Company President and Chief Executive Officer Dennis Muilenburg appears before a Senate Committee on Commerce, Science, and Transportation hearing on ‘Aviation Safety and the Future of Boeing’s 737 MAX’ on Capitol Hill in Washington. Muilenburg is resigning amid ongoing problems at the company over the troubled Max 737 aircraft. The board of directors said Monday, Dec. 23 that Muilenburg is stepping down immediately. The board’s current chairman David Calhoun will become president and CEO on Jan. 13, 2020. (AP Photo/Andrew Harnik, File)

After deadly crashes of marquee aircraft, Boeing CEO is out

Boeing said last week that production of the Max would be wound down in January

Boeing’s CEO is stepping down with no end in sight for a crisis that has enveloped the manufacturer and its marquee aircraft, the Max 737.

The Chicago manufacturer said Monday that Dennis Muilenburg will depart immediately. The board’s current chairman David Calhoun will officially take over on January 13.

The Max was grounded worldwide after two crashes — one in October 2018 off the cost of Indonesia and another in March 2019 in Ethiopia — which killed a combined total of 346 people. The company’s board said a change in leadership is needed to restore confidence in the company as it works to repair relationships with regulators and stakeholders.

“This is something that we have been asking and struggling for quite some time,” said Ababu Amha, who lost his wife, an flight attendant, in the second crash involving an Ethiopian Airlines aircraft. “The CEO reluctantly and deliberately kept the aircraft in service after the Lion Air crash. The Ethiopian Airlines crash was a preventable accident.”

READ MORE: Canadian airlines to feel pinch of Boeing 737 Max 8 production halt

The resignation, however, is not enough, Amha said. “They should further be held accountable for their actions because what they did was a crime.”

The Max is crucial to Boeing and it’s been unable to get approval from regulators to put the plane back in the air. Sales at Airbus, Boeing’s top rival, surged 28% during the first half of the year.

Investigators say that in both crashes, a faulty sensor caused the plane’s MCAS system to push the nose of the plane down and pilots were unable to regain control.

Boeing declined to make Calhoun or other executives available Monday. An email to employees said Greg Smith will serve as interim CEO. “This has obviously been a difficult time for our company, and our people have pulled together in extraordinary ways,” Smith said in the email.

Earlier this month, the head of the Federal Aviation Administration expressed concern that Boeing was pushing for an unrealistically quick return of the grounded 737 Max.

Calhoun says he strongly believes in the future of Boeing and the 737 Max.

Boeing said last week that production of the Max would be wound down in January. The shutdown will likely ripple through Boeing’s vast network of 900 companies that make engines, bodies and other parts for the 737.

Then United Airlines said it would pull the Boeing 737 Max from its flight schedule until June. The same day, Spirit AeroSystems, which makes fuselages, said it would end deliveries intended for the Max in January, and Boeing’s new Starliner capsule went off course on a planned trip to the International Space Station.

READ MORE: Boeing replaces executive who oversaw 737 Max, other planes

Board member Lawrence Kellner will become non-executive chairman of the board.

“On behalf of the entire board of directors, I am pleased that Dave has agreed to lead Boeing at this critical juncture,” Mr. Kellner said in a prepared statement. “Dave has deep industry experience and a proven track record of strong leadership, and he recognizes the challenges we must confront. The board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company.”

The crashes and the decisions that were made leading up to those tragedies have shaken Boeing.

“The company appears to have known about safety issues for quite some time. This indicates that there might be more fundamental cultural issues at the company,” said Tim Hubbard, assistant professor of management at the University of Notre Dame’s Mendoza College of Business. “Furthermore, the recent failure of a rocket test launch indicates that the company might not be as innovative as they once were. Increasing innovativeness and changing the culture of a company the size of Boeing is challenging. One way to jump start changes at Boeing could be new leadership.”

Boeing’s new Starliner capsule ended up in the wrong orbit after lifting off on its first test flight Friday, a blow to the company’s effort to launch astronauts for NASA next year.

Trades of Boeing shares were halted before the announcement but the stock jumped 3% after the opening bell.

Muilenburg’s departure was long overdue, said Robert Clifford, a Chicago lawyer representing several people who are suing Boeing after losing relatives in the second crash, which occurred March 10 in Ethiopia.

“Mr. Muilenburg and other Boeing leaders deliberately put the desire for a heightened stock price and profits over safety by allowing the 737 Max 8 to stay in service after the Lion Air crash” in October 2018, Clifford said. Boeing directors, he said, deserve no praise for ousting Muilenburg now.

___

Elias Meseret in Addis Ababa, Ethiopia and Dave Koenig in Dallas contributed.

Cathy Bussewitz, The Associated Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Const. Allan Young. Photo: Abbotsford Police Department
Manslaughter charge laid in Nelson death of Abbotsford police officer

Allan Young died after an incident in downtown Nelson last summer

Sarah De Klein and her family have created a team – one of many – for the Move4Communitas fitness challenge and fundraiser. (Submitted photo)
Communitas in Abbotsford holds virtual fitness challenge

Move4Communitas started March 1 and runs for 8 weeks

The Kimber family of Boston Bar lost their home in a fire. Blaine Kimber’s daughter created a fundraiser to help rebuild the home with the goal of $100,000. (Screenshot/GoFundMe)
Fundraiser created for Boston Bar family that lost everything in weekend fire

Witnesses say the Kimber family escaped the fire without injury, but their home is a total loss

Police tape is shown in Toronto Tuesday, May 2, 2017. Statistics Canada says the country's crime rate ticked up again in 2018, for a fourth year in a row, though it was still lower than it was a decade ago. THE CANADIAN PRESS/Graeme Roy
CRIME STOPPERS: ‘Most wanted’ for the week of March 7

Crime Stoppers’ weekly list based on information provided by police investigators

Elvira D’Angelo, 92, waits to receive her COVID-19 vaccination shot at a clinic in Montreal, Sunday, March 7, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
‘It’s been a good week’: Tam hopeful on vaccines as pandemic anniversary nears

Tam says the addition of two new vaccines will help Canadians get immunized faster

(The Canadian Press)
‘Worse than Sept. 11, SARS and financial crisis combined’: Tourism industry in crisis

Travel services saw the biggest drop in active businesses with 31 per cent fewer firms operating

Pictures and notes in from friends and classmates make up a memorial in support and memory of Aubrey Berry, 4, and her sister Chloe, 6, during a vigil held at Willows Beach in Oak Bay, B.C., on December 30, 2017. THE CANADIAN PRESS/Chad Hipolito
Mother of slain daughters supports recent changes to Canada’s Divorce Act

Sarah Cotton-Elliott said she believed her children took a back seat to arranging equal parenting

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

The family of injured Willoughby resident Ronald Gerald Jesso is hoping someone saw something that will help solve the mystery of how he came to be so badly hurt on the morning of Feb. 22. Jesso is still in hospital. (Jesso family/Special to Langley Advance Times)
An appeal to help solve the mystery of an injured Langley man

Family of Ronald Gerald Jesso asks witnesses to come forward

Most Read