Boeing CEO Dave Calhoun set to depart by end of 2024, citing reasons for transition

Boeing CEO Dave Calhoun, along with other top executives, is stepping down amidst mounting pressure following safety concerns.

Boeing is undergoing significant management changes in 2024. CEO Dave Calhoun is set to resign by the end of the year, while board chairman Larry Kellner will depart after the annual meeting in May. Additionally, Stan Deal, the president and CEO of Boeing Commercial Airplanes, has resigned immediately. Steve Mollenkopf will replace Kellner as chairman, and Stephanie Pope will take over Deal's position.

Boeing's recent challenges:

The shake-up comes as Boeing faces intensified scrutiny due to recent safety crises. The company's shortcomings came to light after a serious incident on January 5 involving a Boeing 737 Max 9 aircraft. The incident raised questions about flight safety and added to previous concerns over software glitches and two fatal plane crashes involving 737 Max planes.

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During a flight from Portland, Oregon, to Ontario, Canada, a door plug on a Boeing 737 Max 9 blew out, causing a hole in the plane's side mid-air. Passengers experienced a sudden decompression, leading to items, including mobile phones and a pilot's headset, being sucked out. Oxygen masks were deployed, and the pilots conducted an emergency landing in Portland without any injuries.

Calhoun's response:

Calhoun has been vocal about addressing Boeing's quality issues, describing the Alaska Airlines Flight 1282 incident as a "watershed moment." He emphasized the need for transparency and humility in responding to such accidents. Despite the challenges, Boeing remains committed to improving its manufacturing quality and addressing concerns raised by airline CEOs during recent meetings.

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News of Calhoun's impending departure led to a slight increase in Boeing's stock after a period of decline. This change in leadership follows the pattern set by the ousting of former CEO Dennis Muilenburg in 2019 after two fatal plane crashes involving Boeing 737 Max aircraft.