Breaking news coming out of Chicago this morning that Boeing CEO Dennis Muilenburg has resigned from his position. This comes amid further negative 737 MAX developments.
Boeing announced that Dennis Muilenburg resigned from his position as CEO and Board Director at Boeing. The current Chairman, David L. Calhoun, will be the next CEO and President of Boeing from January 13, 2020. This development comes after CEO Muilenburg was removed from his position as Chairman of the Board.
This change was, in part, driven by the Board of Directors. Boeing’s Board felt that a leadership change was necessary as the aircraft manufacturer seeks to improve its standing. This year, the 737 MAX crisis has taken a toll on Boeing’s reputation and relationships with both customers and stakeholders.
David Calhoun to take over
As part of this new leadership change, Boeing is looking towards a policy and commitment of full transparency. Furthermore, the manufacturer intends on improving communication with regulators, in particular, the FAA, and customers. However, Boeing is not giving up on the 737 MAX. Mr. Calhoun had the following to say about his new appointment:
I strongly believe in the future of Boeing and the 737 MAX. I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation
Why is Boeing making this move?
Under Dennis Muilenburg, Boeing saw some incredible feats. Since taking his position as CEO in July 2015, Boeing has rolled out the 787-10, the 737 MAX, and made progress towards the upcoming 777X. However, Muilenburg’s handling of the 737 MAX crisis has received much criticism. Recently, lawmakers grilled him at a congressional hearing on the 737 MAX where Muilenburg was adamant that he would not resign.
A leadership change in the middle of a major crisis has its pros and cons. On one hand, it allows one team to continue working towards a resolution of the crisis. On the other, a new CEO would likely have an easier time reassuring shareholders and customers. After Boeing announced it was shutting 737 MAX production for the foreseeable future, the outlook looked a little bleaker for the 737 MAX’s return to service.
What does the future hold for Boeing?
Incoming CEO Calhoun will have much on his plate. While the 737 MAX will likely take up a bulk of his first few months on the job, Boeing still has to make some headway. First, Boeing will have to manage 777X delays. Then, Boeing will also have to make a decision on the NMA or new midsize airplane. Not to mention, once the 737 MAX is recertified, Boeing will need to offer tremendous support to airlines to get the plane back in the air and deliver the remaining of the type.
Hopefully, incoming CEO Calhoun learns from the mistakes made from the 737 MAX and can work to restore Boeing’s image as a leading, safe aircraft manufacturer. Given the Christmas and New Year holidays, much of this transition will likely occur in early January. This will give incoming CEO Calhoun some time to put together a strategy for Boeing in 2020. Most likely, this strategy will have plenty of input from the Board of Directors.
At the end of the day, Dennis Muilenburg will likely be remembered for the 737 MAX. However, he has overseen a number of successes at the American aircraft manufacturer. But now, Boeing needs to move in a new direction under new leadership.
Do you think Dennis Muilenburg should have resigned? What do you think the future holds for Boeing? Let us know in the comments below!