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.

Just Posted

(Advocate file photo)
Red Deer down to 102 active COVID-19 cases

Central zone has 332 cases with 26 in hospital and five in ICU

Photo Courtesy: Echo Lacombe Association logo.
Lacombe City Council supports Echo Lacombe with location for pilot program

Echo Lacombe Association will run a pilot propgram on food rescue until November, 1, 2021

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Red Deer COVID cases continue to fall

114 cases in Red Deer, down one from Saturday

File Photo
Blackfalds RCMP seeking suspects in traffic collision

RCMP are asking the public for help identifing two suspects wanted for multiple offences

Maskwacis Pride crosswalk (Left to right): Montana First Nation Councillor Reggie Rabbit, Samson Cree Nation Councillor Louise Omeasoo, Samson Cree Nation Councillor Katherine Swampy, Samson Cree Nation Councillor Shannon Buffalo, Samson Cree Nation Chief Vern Saddleback.
Pride in Maskwacis

The 4th inaugural Maskwacis Pride crosswalk painting took place on Saturday June 12th, 2021

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

(Black Press Media file)
Dirty money: Canadian currency the most germ-filled in the world, survey suggests

Canadian plastic currency was found to contain 209 bacterial cultures

A worker, at left, tends to a customer at a cosmetics shop amid the COVID-19 pandemic Thursday, May 20, 2021, in Los Angeles. (AP Photo/Marcio Jose Sanchez)
Half of cosmetics sold in Canada, U.S. contain toxic chemicals: study

Researchers found that 56% of foundations and eye products contain high levels of fluorine

Annamie Paul, leader of the Green Party of Canada, speaks at a news conference on Parliament Hill in Ottawa, on June 10, 2021. THE CANADIAN PRESS/Justin Tang
Green Leader Annamie Paul facing no-confidence motion from party brass

move follows months of internal strife and the defection of MP Jenica Atwin to the Liberals

Tulips bloom in front of the Supreme Court of Canada in Ottawa, Thursday, May 10, 2018. Day two of a full week of scheduled hearings will be heard in Federal Court today on a case involving Indigenous children unnecessarily taken into foster care by what all parties call Canada’s “broken child welfare system.” THE CANADIAN PRESS/Sean Kilpatrick
AFN slams Ottawa for ‘heartless’ legal challenge of First Nations child compensation

2019 decision awarded $40,000 to each Indigenous child removed before 2006

A health-care worker holds up a sign signalling she needs more COVID-19 vaccines at the ‘hockey hub’ mass vaccination facility at the CAA Centre during the COVID-19 pandemic in Brampton, Ont., on Friday, June 4, 2021. This NHL-sized hockey rink is one of CanadaÕs largest vaccination centres. THE CANADIAN PRESS/Nathan Denette
‘Vaxxed to the max’: Feds launch Ask an Expert campaign to encourage COVID shots

Survey shows that confidence in vaccines has risen this spring

Children’s shoes and flowers are shown after being placed outside the Ontario legislature in Toronto on Monday, May 31, 2021. THE CANADIAN PRESS/Frank Gunn
Ontario commits $10 million to investigate burial sites at residential schools

Truth and Reconciliation Commission identified 12 locations of unmarked burial sites in Ontario

Two hundred and fifteen lights are placed on the lawn outside the Residential School in Kamloops, B.C., Saturday, June, 13, 2021. The remains of 215 children were discovered buried near the former Kamloops Indian Residential School earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Days after Kamloops remains discovery, Tk’emlups families gather to unite, move ahead

‘We have to work together because this is going to be setting a precedent for the rest of the country’

In this Saturday, May 29, 2021, file photo, people crowd the Santa Monica Pier in Santa Monica, Calif. California, the first state in America to put in place a coronavirus lockdown, is now turning a page on the pandemic. Most of California’s coronavirus restrictions will disappear Tuesday, June 15, 2021. (AP Photo/Damian Dovarganes, File)
With COVID tamed, it’s a ‘grand reopening’ in California

No more state rules on social distancing, no more limits on capacity, no more mandatory masks

Most Read