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| Boeing Fires C.E.O. Dennis Muilenburg | Boeing Fires C.E.O. Dennis Muilenburg |
| (about 2 hours later) | |
| Boeing on Monday fired its chief executive, Dennis A. Muilenburg, whose handling of the company’s 737 Max crisis had angered lawmakers, airlines, regulators and victims’ families. | Boeing on Monday fired its chief executive, Dennis A. Muilenburg, whose handling of the company’s 737 Max crisis had angered lawmakers, airlines, regulators and victims’ families. |
| The company has been mired in the worst crisis in its 103-year history since the crashes of two 737 Max jets killed 346 people. The plane has been grounded since March, and Boeing has faced cascading delays as it tries to return the Max to the air. | |
| The company said David Calhoun, the chairman, would replace Mr. Muilenburg on Jan. 13. Until then, Boeing’s chief financial officer, Greg Smith, will serve as interim chief executive, the company said. | |
| The Boeing board made the decision during a call on Sunday, after a string of disastrous announcements for the company, according to two people briefed on the matter who spoke on condition of anonymity to discuss internal deliberations. Mr. Muilenburg has stepped down effective immediately. | |
| Last week, Boeing said it would temporarily shut down the 737 Max factory. Mr. Muilenburg’s relationship with the Federal Aviation Administration was badly damaged after he was seen as pressuring the agency to return the planes to service. And on Friday, a Boeing space capsule designed for NASA failed to reach the correct orbit, a crushing blow to company morale. | Last week, Boeing said it would temporarily shut down the 737 Max factory. Mr. Muilenburg’s relationship with the Federal Aviation Administration was badly damaged after he was seen as pressuring the agency to return the planes to service. And on Friday, a Boeing space capsule designed for NASA failed to reach the correct orbit, a crushing blow to company morale. |
| The firing of Mr. Muilenburg underscores the extent of the challenges facing Boeing. Before the plane can fly again, the company and regulators must fix an automated system known as MCAS that was found to have played a role in both crashes, and ensure that the Max is certified safely and transparently. | |
| Boeing is also dealing with the damage to its reputation. The company has been particularly hurt by its uneven communication with lawmakers, regulators and aviation unions. | |
| Mr. Muilenburg has repeatedly made overly optimistic projections about how quickly the plane would return to service. That has created chaos for airlines, which have had to cancel thousands of flights and sacrifice billions of dollars in sales. | Mr. Muilenburg has repeatedly made overly optimistic projections about how quickly the plane would return to service. That has created chaos for airlines, which have had to cancel thousands of flights and sacrifice billions of dollars in sales. |
| His attempts to offer sincere public apologies have been clumsy, leaving lawmakers irate and the families of victims feeling as if the company did not care about their loss. | His attempts to offer sincere public apologies have been clumsy, leaving lawmakers irate and the families of victims feeling as if the company did not care about their loss. |
| “They’ve crushed the trust relationship,” said Dennis Tajer, a spokesman for the American Airlines pilot union. “It’s not just the system being fixed, it’s not just the plane being fixed. This is a human event.” | |
| Mr. Calhoun is viewed internally as a more natural public communicator than Mr. Muilenburg. But the pressure on the new chief executive will remain intense. | |
| “This changes nothing when it comes to ensuring this aircraft is safe and that pilots are properly trained,” Mr. Tajer said. | |
| Boeing stock has fallen by 22 percent in this crisis, costing the company more than $8 billion and affecting a supply chain that extends to 8,000 companies. | Boeing stock has fallen by 22 percent in this crisis, costing the company more than $8 billion and affecting a supply chain that extends to 8,000 companies. |
| As recently as Friday, the Boeing board was standing by Mr. Muilenburg. At a board meeting in Chicago last week where the production shutdown was deliberated, there was no talk of removing him, according to two people familiar with the matter. On Friday, a company spokesman said Mr. Calhoun still stood by comments he made in November, saying the board supported Mr. Muilenburg. | As recently as Friday, the Boeing board was standing by Mr. Muilenburg. At a board meeting in Chicago last week where the production shutdown was deliberated, there was no talk of removing him, according to two people familiar with the matter. On Friday, a company spokesman said Mr. Calhoun still stood by comments he made in November, saying the board supported Mr. Muilenburg. |
| But over the weekend, simmering frustration with Mr. Muilenburg’s performance came to a head. | But over the weekend, simmering frustration with Mr. Muilenburg’s performance came to a head. |
| Boeing said in a statement that its board of directors “decided that 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 said in a statement that its board of directors “decided that 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.” |
| On Monday morning, Mr. Smith sent a note to employees saying that Boeing would “proceed with a renewed commitment to full transparency, including effective and proactive communications with the F.A.A., other global regulators and our customers.” | On Monday morning, Mr. Smith sent a note to employees saying that Boeing would “proceed with a renewed commitment to full transparency, including effective and proactive communications with the F.A.A., other global regulators and our customers.” |
| “This has obviously been a difficult time for our company, and our people have pulled together in extraordinary ways,” Mr. Smith added in the note, a copy of which was reviewed by The New York Times. “Over the next few weeks as we transition to new leadership, I am committed to ensuring above all that we meet the needs of our stakeholders — especially our regulators, customers and employees — with transparency and humility.” | “This has obviously been a difficult time for our company, and our people have pulled together in extraordinary ways,” Mr. Smith added in the note, a copy of which was reviewed by The New York Times. “Over the next few weeks as we transition to new leadership, I am committed to ensuring above all that we meet the needs of our stakeholders — especially our regulators, customers and employees — with transparency and humility.” |
| Some of those who were frustrated with Mr. Muilenburg welcomed the news. | |
| “Today is a turning point,” Sara Nelson, the president of the Association of Flight Attendants union, said in an interview. “Public trust was lost and only has the chance for redemption with new leadership.” |