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Boeing's CEO Resigns, New CEO Announced

Boeing CEO resigned

Boeing CEO Dennis A. Muilenburg has been resigned on Monday, a week after the company announced it planned to suspend production of its troubled 737 Max airplanes.

Since two crashes involving its best-selling 737 Max plane killed 346 people, Boeing has been mired in crisis. The plane has been grounded by regulators since March, and the company and its airline customers have lost billions of dollars. The Southwest Airlines Pilots Union, or SWAPA, on October 7 sued Boeing alleging that it got them to agree to fly the new aircraft using false representations about its airworthiness and its similarity to earlier models of the 737 line. Turkish Airlines is also preparing to sue Boeing.

Dennis Muilenburg had been CEO since 2015. Boeing announced that its Board of Directors has named current Chairman, David L. Calhoun, as Chief Executive Officer and President, effective January 13, 2020. Mr. Calhoun will remain a member of the Board. In addition, Board member Lawrence W. Kellner will become non-executive Chairman of the Board effective immediately.

The Company also announced that Dennis A. Muilenburg has resigned from his positions as Chief Executive Officer and Board director effective immediately. Boeing Chief Financial Officer Greg Smith will serve as interim CEO during the brief transition period, while Mr. Calhoun exits his non-Boeing commitments.

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.

Under the Company's new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers.

"On behalf of the entire Board of Directors, I am pleased that Dave has agreed to lead Boeing at this critical juncture," Mr. Kellner said.  He added, "Dave has deep industry experience and a proven track record of strong leadership, and he recognizes the challenges we must confront. The Board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company."

Mr. Calhoun said, "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."

 

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