Boeing fires CEO Dennis Muilenburg, as the company struggles with 737 Max crisis
Leslie Josephs & Amelia Lucas
CNBC
KEY POINTS
- Boeing on Monday replaced CEO Dennis Muilenburg.
- Chairman David Calhoun will become the manufacturer’s new CEO in January.
- Lawrence Kellner tapped as chairman.
- The company has been struggling to regain the trust of regulators, customers and the public after two fatal crashes of its best-selling plane, the 737 Max.
Boeing on Monday fired CEO Dennis Muilenburg as the company struggles to regain the trust of regulators, customers and the public after two fatal crashes of its best-selling plane, the 737 Max, killed all 346 people aboard.
Chairman David Calhoun will become the manufacturer’s new CEO on Jan. 13. Board member Lawrence Kellner will become Boeing’s non-executive chairman of the board, effective immediately.
Shares of the stock rose 2.5% in premarket trading.
The resulting turmoil from the crashes has consumed Boeing. The two crashes sparked numerous investigations, including a federal criminal probe, about the aircraft’s development and certification by the Federal Aviation Administration in 2017. Earlier this month, Boeing said it would suspend production of the 737 Max early next year.
The company’s board removed Muilenburg as chairman in October saying he could better focus on bringing the Max back to service, a process that has been delayed by additional questions from regulators.
Boeing removed the head of its commercial airplane unit, Kevin McAllister, 11 days later. Stan Deal, a three-decade Boeing employee who most recently led its global services business, replaced him.
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