Boeing ousts CEO over 737 Max FAA rebuke after 346 die in two crashes
BOEING CEO Dennis Muilenburg has been ousted to be replaced January 13 by David Calhoun, 62, a General Electric veteran who has been company chairman since October, reports Bloomberg
BOEING CEO Dennis Muilenburg has been ousted to be replaced January 13 by David Calhoun, 62, a General Electric veteran who has been company chairman since October, reports Bloomberg.
Chief financial officer Greg Smith will serve as interim CEO in the transition period, Boeing said in a statement. Company director Larry Kellner will replace Mr Calhoun as chairman.
The move followed a rare public rebuke by the US Federal Aviation Administration (F). Boeing said it would halt production of the 737 Max that has been grounded since March after two crashes killed 346 people.
'A change in leadership was necessary to restore confidence in the company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders,' Boeing's board said in the statement.
The 737 Max is under investigation by the US Department of Justice and Congress. A high-ranking Boeing pilot working on the plane three years ago during its certification expressed misgivings about a feature implicated in the crashes, calling its handling performance 'egregious', according to 2016 messages.
Mr Muilenburg succeeded Jim McNerney as CEO in mid-2015 amid the biggest sales boom in aviation history, fuelled by low interest rates, readily available financing and the rapid expansion of low-cost airlines, particularly in Asia.