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Boeing fires boss Muilenburg amid 737 troubles | Boeing fires boss Muilenburg amid 737 troubles |
(about 2 hours later) | |
Boeing has fired its chief executive, Dennis Muilenburg, a move the board of directors said "was necessary to restore confidence" in the firm. | Boeing has fired its chief executive, Dennis Muilenburg, a move the board of directors said "was necessary to restore confidence" in the firm. |
David Calhoun, Boeing's current chairman, will take over as chief executive and president from 13 January. | David Calhoun, Boeing's current chairman, will take over as chief executive and president from 13 January. |
Mr Muilenburg had faced calls for his resignation over the company's response to two deadly crashes involving the firm's best-selling 737 Max airliner. | Mr Muilenburg had faced calls for his resignation over the company's response to two deadly crashes involving the firm's best-selling 737 Max airliner. |
The jet has been grounded since March. | The jet has been grounded since March. |
Last week, Boeing said it would halt production of the plane while it waited for regulators to certify the jet's safety. | Last week, Boeing said it would halt production of the plane while it waited for regulators to certify the jet's safety. |
"The 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's statement said. | "The 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's statement said. |
Boeing added that Lawrence Kellner would become non-executive chairman with immediate effect. | Boeing added that Lawrence Kellner would become non-executive chairman with immediate effect. |
Michael Stumo, who lost his daughter Samya Rose in one of the 737 crashes and has organised victims' families against Boeing, called the resignation a "good first step toward restoring Boeing to a company that focuses on safety and innovation". | |
"The next step is for several board members who are underperforming or unqualified to resign," he said. | |
Software problem | Software problem |
The 737 Max crashes in Indonesia and Ethiopia occurred within five months of each other and killed 346 people. | |
Air safety officials investigating the tragedies have identified an automated control system in the plane, known as MCAS, as a factor. | |
Boeing has said the software system, which relied on a single sensor, received erroneous data, which led it to override pilot commands and push the aircraft downwards. | Boeing has said the software system, which relied on a single sensor, received erroneous data, which led it to override pilot commands and push the aircraft downwards. |
It has said it is fixing the software and has overhauled its review procedures. | It has said it is fixing the software and has overhauled its review procedures. |
But US lawmakers, who are investigating the company, have said the firm was aware before the crashes that the system could be unreliable. They have accused the company of prioritising profit over safety as it pushed to get the planes to customers. | But US lawmakers, who are investigating the company, have said the firm was aware before the crashes that the system could be unreliable. They have accused the company of prioritising profit over safety as it pushed to get the planes to customers. |
Boeing's entire fleet of 737 Max planes has been grounded worldwide since March. The company had been hoping to have the planes back in the air by the end of this year, but US regulators made it clear that they would not be certified to return to the skies that quickly. | Boeing's entire fleet of 737 Max planes has been grounded worldwide since March. The company had been hoping to have the planes back in the air by the end of this year, but US regulators made it clear that they would not be certified to return to the skies that quickly. |
Boeing's reputation took another hit last week when its Starliner spacecraft suffered technical problems that prevented it from taking the right path to the International Space Station. | Boeing's reputation took another hit last week when its Starliner spacecraft suffered technical problems that prevented it from taking the right path to the International Space Station. |
'Renewed commitment' | |
Replacing Mr Muilenburg is intended improve the company's relationship with officials, Boeing's board said. | |
"Under the company's new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA [Federal Aviation Authority], other global regulators and its customers," it said. | |
Mr Muilenburg first joined Boeing in 1985. He led the company's defence, space and security division prior to his appointment as chief executive in 2015. | Mr Muilenburg first joined Boeing in 1985. He led the company's defence, space and security division prior to his appointment as chief executive in 2015. |
He was stripped of his role as chairman of Boeing's board of directors in October and later agreed to give up his bonus. However, Boeing had continued to express confidence in him. | He was stripped of his role as chairman of Boeing's board of directors in October and later agreed to give up his bonus. However, Boeing had continued to express confidence in him. |
Congressman Peter DeFazio, who leads a committee investigating Boeing, told the New York Times this weekend that the firm's decision to retain Mr Muilenburg suggested it was not "truly serious" about safety. | Congressman Peter DeFazio, who leads a committee investigating Boeing, told the New York Times this weekend that the firm's decision to retain Mr Muilenburg suggested it was not "truly serious" about safety. |
"If it was my call to make, Muilenburg would've been fired long ago," he said. | "If it was my call to make, Muilenburg would've been fired long ago," he said. |
Dennis Muilenburg's departure was inevitable, though the timing was unexpected. | Dennis Muilenburg's departure was inevitable, though the timing was unexpected. |
Since the two accidents, he has faced intense criticism over the corporate culture at Boeing and its relationship with regulators. There have been claims - emphatically denied by the company - that it prioritised profits and speed of production over safety. | Since the two accidents, he has faced intense criticism over the corporate culture at Boeing and its relationship with regulators. There have been claims - emphatically denied by the company - that it prioritised profits and speed of production over safety. |
Although he insisted, repeatedly, that Boeing "owned" its failures, his attempts to portray the disasters as the results of a chain of events attracted further condemnation. Last week, the company announced it would have to suspend production of the 737 Max, because regulators have yet to clear the aircraft as safe to fly again. | Although he insisted, repeatedly, that Boeing "owned" its failures, his attempts to portray the disasters as the results of a chain of events attracted further condemnation. Last week, the company announced it would have to suspend production of the 737 Max, because regulators have yet to clear the aircraft as safe to fly again. |