Boeing CEO Muilenburg Steps Down

Boeing's board of directors has named current Chairman David L. Calhoun as chief executive officer and president, effective as of 13 January 2020, the company's statement says.

Chief Executive Officer of Boeing Dennis Muilenburg has resigned, the company says, announcing new CEO David Calhoun.

"I strongly believe in the future of Boeing and the 737 MAX. I am honoured to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation", Calhoun stated.

Calhoun will remain a member of the board. In addition, board member Lawrence W. Kellner will become non-executive chairman of the board, according to the statement. 

"On behalf of the entire Board of Directors, I am pleased that Dave has agreed to lead Boeing at this critical juncture. Dave has deep industry experience and a proven track record of strong leadership, and he recognises 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", Kellner said.

Boeing Chief Financial Officer Greg Smith will reportedly serve as interim CEO during the brief transition period.

Reports say that following the decision to replace CEO, Boeing shares jumped 2.7 percent.

Boeing decided to make a change in leadership to restore confidence in the company moving forward as it "works to repair relationships with regulators, customers, and all other stakeholders".

In October 2018, a Boeing 737 MAX plane crashed in the sea off the coast of Indonesia, and half a year later, another aircraft of the same model crashed in Ethiopia. The two tragedies killed a total of 346 people. The investigation revealed that errors in the functioning of the Manoeuvring Characteristics Augmentation System were the likely cause of the crashes.

In the wake of the two deadly accidents, aviation authorities and carriers around the world either grounded all 737 MAX series aircraft, or closed their airspace to them, while the US Federal Aviation Administration (FAA) banned this model.