Boeing Announces Major Leadership Changes Amid Quality Control and Oversight Concerns

Boeing, the aerospace giant, made significant leadership announcements on Monday in response to ongoing supply chain and quality control challenges. Dave Calhoun, the current CEO, will step down at the end of 2024. He took over the position in 2020 following the departure of Dennis Muilenburg in the wake of two deadly 737 Max crashes, reports say.

Stan Deal, who led Boeing’s commercial airplanes division, has retired with immediate effect. Stephanie Pope, the company’s COO, has been appointed as the new CEO of Commercial Airplanes. Additionally, Larry Kellner, the Chairman of Boeing, has decided not to seek re-election at the annual meeting in May. Steve Mollenkopf, a current board member, will take over from Kellner and lead the search for the next CEO.

These changes come as Boeing faces increased scrutiny from regulators after a 737 Max fuselage incident on an Alaska Air flight. The company has been actively addressing quality control and production issues, informing various in mid-March about its efforts to rectify the situation.

On the stock market, Boeing’s shares rose 1.4% on Monday, following a pre-market surge of 4% on the news. The stock closed just below its 21-day exponential moving average. Last week, Boeing’s stock reversed its downward trend with a 3.5% gain, although it is still down 26.6% year-to-date after the January emergency landing.

Meanwhile, the Federal Aviation Administration (FAA) is reportedly considering additional oversight measures for United Airlines after a series of recent flight incidents. The regulator is looking into potential temporary actions against the Chicago-based carrier to ensure compliance with safety regulations.

Some of the measures being discussed include halting new route launches, pausing the introduction of new planes into service, and stopping internal certifications of new captains. These actions come in the wake of several mechanical issues faced by United Airlines, many of which involved Boeing aircraft.

United Airlines’ stock fell 3.4% on Monday, despite a year-to-date increase of 8.8%. Delta Air Lines eased 0.4% in Monday’s trading, while American Airlines bounced back from an early decline to close with a 0.7% gain.

These developments highlight the ongoing challenges faced by major players in the aerospace industry, with quality control and safety concerns taking center stage in the aviation sector.