(Scypre.com) – Boeing is set to witness the departure of CEO Dave Calhoun by the end of this year. This announcement marks a pivotal moment for the aerospace giant, which has faced a tumultuous period marked by several high-profile setbacks and challenges. Alongside Calhoun, Boeing’s chairman Larry Kellner and the head of its commercial airplane unit, Stan Deal, are also stepping down, signaling a comprehensive leadership refresh aimed at steering the company towards recovery and stability.
Taking the helm of Boeing’s board will be former Qualcomm CEO Steve Mollenkopf, succeeding Larry Kellner, who has opted not to seek re-election. Meanwhile, the departure of Stan Deal from the commercial airplanes division paves the way for Stephanie Pope, Boeing’s Chief Operating Officer since January, to assume leadership of this critical unit immediately.
Boeing’s journey over the past five years has been fraught with challenges, including the tragic crashes of two 737 Max aircraft in 2018 and 2019, resulting in the loss of 346 lives. These incidents, coupled with other safety concerns such as a recent issue with a door plug on an Alaska Airlines 737 Max, have culminated in multiple groundings of its aircraft, over $31 billion in cumulative losses, and heightened scrutiny over the company’s safety and quality standards.
Dave Calhoun, in a letter to Boeing employees, described the recent incident with the Alaska Airlines flight as “a watershed moment” for the company, underscoring a commitment to rectifying the company’s shortcomings and restoring its reputation. Calhoun’s decision to leave, as he affirmed in an interview, was entirely voluntary, driven by a resolve to confront Boeing’s issues head-on and to enact necessary changes within the organization.
The reshuffling at Boeing comes amidst a backdrop of criticism and calls for accountability, not just from industry analysts but also from key stakeholders, including CEOs of major airlines reliant on Boeing’s aircraft. These airlines have expressed dissatisfaction with both the quality of Boeing’s planes and delays in delivery, complicating their operational planning amidst a surge in passenger demand.
For instance, Ryanair and United Airlines have voiced concerns over the quality issues and delivery delays of Boeing jets. The difficulty in switching to Airbus, given its long backlog and the logistical challenges of operating mixed fleets, underscores the complexity of the situation for Boeing’s clients. Such challenges highlight the broader implications of Boeing’s recent struggles, affecting not just the company but its extensive network of airline customers.
Additionally, Boeing is navigating a maze of regulatory scrutiny following a series of safety incidents. An FAA audit, prompted by the Alaska Airlines door plug incident, unveiled multiple compliance issues, setting a 90-day deadline for Boeing to address these concerns. The incident has also triggered investigations by the NTSB and the Justice Department, potentially exposing Boeing to criminal liability and questioning a previous settlement related to the 737 Max’s certification.
Under Calhoun’s leadership, Boeing has grappled with not only the 737 Max crisis but also quality issues with its 787 Dreamliners, reflecting challenges that extend beyond a single aircraft model. Calhoun, who stepped into the CEO role in January 2020, brought to Boeing a background in finance rather than engineering—a shift that critics argue has steered the company away from its historic emphasis on engineering excellence.
As Boeing embarks on this transitional phase, Calhoun has emphasized the importance of leadership experienced in managing long-cycle businesses and capable of guiding the company through its current challenges while investing in the development of future aircraft.
With Boeing’s stock responding positively to the announcement of these leadership changes, there is cautious optimism about the company’s path towards recovery, underscored by a commitment to addressing its immediate challenges and re-establishing its standing as a leader in aerospace innovation.