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Boeing Board Fires Chief Executive Muilenburg to Recover from Setbacks

Boeing has fired CEO Dennis Muilenburg after repeatedly failing to contain the fallout from two deadly crashes that halted the…

By Luann Reagan , in Industry Updates News , at December 24, 2019 5:07 AM EST Tags: , ,

Boeing has fired CEO Dennis Muilenburg after repeatedly failing to contain the fallout from two deadly crashes that halted the production of its best-selling aircraft and blackened its image with airlines and regulators.

Boeing – beset by one blow after another after the two air disasters – dropped Muilenburg because it turned more and more apparent that he was making little headway fixing a crisis that has cost it $9 billion, harm suppliers and airlines and now warns to cut the pace of U.S. economic growth.

Chairman David Calhoun, a former General Electric executive who has been on the Boeing committee since 2009, will take over as CEO and president, effective from January 13, Boeing stated. Until then, Chief Financial Officer Greg Smith will operate the world’s largest plane manufacturer.

Boeing shares, which have dropped over 20% over the past nine months, closed up 2.9%.

The 737 MAX has been grounded since March after two accidents in Indonesia, and Ethiopia killed 346 people within five months.

Boeing is struggling to fix ties with the U.S. and international regulators it needs to win over to get the plane back in the air.

After keeping assembly lines open and storing 400 jetliners to be ready for a return to flight, Boeing recognized this month it would not be capable of attaining its target of flying this year and introduced it would stop 737 MAX production in January.

Boeing, on Monday, stated deliveries from 737 suppliers will be suspended for a month beginning mid-January, adding that it was unsure when production would restart.

Economists estimate that will decrease overall U.S. economic growth by half a percentage point.