Dave Calhoun CEO to Step Down at Year-End
Boeing Stock Rises Over 1%
Boeing's management, facing the greatest crisis since its founding due to various accidents including an emergency landing caused by the fuselage being torn off during flight, will undergo a major overhaul. Boeing's stock price is rising about 1% on news of the management reshuffle.
On the 25th (local time), Boeing announced on its homepage that Dave Calhoun, CEO and Chairman, plans to resign at the end of the year.
Larry Kellner, Chairman of Boeing's Board of Directors, also expressed that he does not intend to seek re-election. Stan Deal, CEO and President of Boeing Commercial Airplanes, will leave the company immediately. Stephanie Pofo, Boeing's Chief Operating Officer (COO), will succeed Deal as CEO.
Recently, Boeing has caused significant controversy due to a series of accidents involving the 737 model.
In January, an Alaska Airlines Boeing 737 Max 9 passenger plane that took off from Portland International Airport in Oregon made an emergency landing after part of a window and fuselage were torn off while flying at about 5,000 meters altitude. Government investigations found that four bolts securing the door were missing during aircraft assembly. On the 6th of this month, smoke was detected in the cabin of an Alaska Airlines Boeing 737-800 heading to Phoenix, causing the plane to return to Portland Airport. On the 8th, a United Airlines Boeing 737 Max 8 at Houston International Airport in Texas veered off the paved runway while taxiing after landing.
Bloomberg reported that the U.S. Federal Aviation Administration (FAA), after a full investigation of Boeing and its suppliers, confirmed serious concerns about the company's internal safety culture.
Robert Stollard, a researcher at Vertical Research Partners, said, "While no one celebrates someone's job loss, this is a wise move by Boeing's board," adding, "A significant number of Boeing's customers, suppliers, and other stakeholders have lost trust in Boeing."
On news of Boeing's management overhaul, as of 10:23 a.m. Eastern Time, Boeing's stock price was up 1.24% in the New York stock market.
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