Boeing braces for big shake-up: Leadership changes and safety checks

Mar 25, 2024

Lauren Taylor Anchor

By Lauren Taylor (Anchor), William Jackson (Producer), Jonah Applegarth (Video Editor)

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Boeing Co. is at a critical juncture with substantial leadership changes on the horizon. CEO Dave Calhoun announced his plan to step down at the conclusion of 2024, signaling a shift for the aerospace titan amid persistent challenges. In tandem, Boeing’s chair of the board, Larry Kellner, will not pursue reelection, and Stan Deal, the chief of the Commercial Airplanes Division, is set to retire.

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These leadership shifts occur as Boeing undergoes rigorous scrutiny over its manufacturing practices and safety protocols, sparked by a series of incidents. A notable episode involved a door plug coming loose mid-flight on a Boeing 737 Max 9 during an Alaska Airlines journey, prompting a criminal probe.

United Airlines-operated Boeing planes have also faced multiple problems, including an engine fire caused by plastic wrap, a tire detachment after takeoff and a plane veering off course.

Calhoun, who assumed leadership in 2020, committed to revitalizing Boeing following two 737 MAX crashes in 2018 and 2019. The crashes collectively claimed the lives of nearly 350 people.

Despite facing intense scrutiny, Calhoun conveyed a message of optimism to employees.

“The eyes of the world are on us, and I know that we will come through this moment a better company,” Calhoun said. “I originally agreed to take on the role of CEO of Boeing at the board’s request, stepping down as board chair in the process, because of the unprecedented circumstances the company was facing at that time. It has been the greatest privilege of my life to serve in both roles and I will only feel the journey has been properly completed when we finish the job that we need to do. We are going to fix what isn’t working, and we are going to get our company back on the track towards recovery and stability.”

At the Bank of America Global Industrials Conference, Boeing CFO Brian West addressed the company’s dedication to enhancing quality, safety and compliance amid regulatory scrutiny and recent operational hurdles.

West emphasized Boeing’s unwavering commitment to transparency and accountability with regulatory bodies. West acknowledged the need for change and promised a cautious and deliberate approach to improvement.

“The FAA is deeply involved and undertaking a tougher audit than anything we’ve ever been through before,” West said. “There are changes that need to happen. There’s no doubt about it. But we’re going to do so diligently and expeditiously. But we won’t rush or go too fast.”

Calhoun’s departure marks him as the second CEO to exit the company amidst ongoing concerns over product quality and manufacturing challenges.

Tags: Airlines, American Airlines, Boeing, Boeing 747

[Lauren Taylor]

BOEING IS FACING A PIVOTAL MOMENT WITH SIGNIFICANT LEADERSHIP TRANSITIONS AHEAD. CEO DAVE CALHOUN ANNOUNCED HE WILL STEP DOWN AT THE END OF 2024, MARKING A MAJOR SHIFT FOR THE AEROSPACE GIANT AMIDST ONGOING CHALLENGES. ALONGSIDE CALHOUN, BOEING’S BOARD CHAIR, LARRY KELLNER, WILL NOT SEEK RE-ELECTION, AND STAN DEAL, HEAD OF THE COMMERCIAL AIRPLANES DIVISION, WILL RETIRE.

THESE LEADERSHIP CHANGES HAPPEN AS THE COMPANY FACES INTENSE SCRUTINY OVER ITS MANUFACTURING PROCESSES AND SAFETY STANDARDS. THIS FOLLOWS A SERIES OF INCIDENTS, INCLUDING A DOOR PLUG DETACHING MID-FLIGHT FROM A BOEING 737 MAX 9 DURING AN ALASKA AIRLINES,WHICH HAS LED TO A CRIMINAL INVESTIGATION.. AND SEVERAL ISSUES WITH UNITED AIRLINES-OPERATED BOEING AIRCRAFT, SUCH AS AN ENGINE FIRE TRIGGERED BY PLASTIC PACKAGING, A TIRE LOSS POST-TAKEOFF, AND A PLANE VEERING OFF THE RUNWAY.

CALHOUN, WHO TOOK THE JOB NEARLY THREE YEARS AGO, PROMISED TO REVITALIZE BOEING AFTER TWO FATAL 737 MAX CRASHES IN 2018 AND 2019 THAT KILLED NEARLY 350 PEOPLE. IN A MESSAGE TO EMPLOYEES, CALHOUN EXPRESSED CONFIDENCE DESPITE THE SCRUTINY, SAYING:

DAVE CALHOUN
CHIEF EXECUTIVE OFFICER | THE BOEING COMPANY

The eyes of the world are on us, and I know that we will come through this moment a better company.

[LAUREN TAYLOR]

LAST WEEK DURING THE BANK OF AMERICA GLOBAL INDUSTRIALS CONFERENCE BOEING’S CFO, BRIAN WEST, DISCUSSED THE COMPANY’S FOCUS ON QUALITY, SAFETY, AND COMPLIANCE AMIDST REGULATORY SCRUTINY AND ITS RECENT OPERATIONAL CHALLENGES.

BRIAN WEST
CHIEF FINANCIAL OFFICER | THE BOEING COMPANY

“Let me first start by saying that we continue to be fully committed to transparency and accountability with our regulators. The FAA is deeply involved and undertaking a tougher audit than anything we’ve ever been through before. There is changes that need to happen. There’s no doubt about it. But we’re going to do so diligently and expeditiously. But we won’t rush or go too fast.”

[Lauren Taylor]

CALHOUN IS NOW THE SECOND CEO TO LEAVE THE COMPANY DUE TO ISSUES

RELATED TO PRODUCT QUALITY AND MANUFACTURING CHALLENGES.