Boeing also announced that the head of its commercial airlines division will retire immediately while its chairman will not seek re-election.
The company is facing scrutiny following an incident where an unused door blew out of a Boeing 737 Max in January shortly after take-off.
Although there were no injuries the incident raised concerns about Boeing’s safety and quality control standards.
Many analysts agree that a change in Boeing’s leadership is long overdue.
A shake-up at the top is essential said Stewart Glickman equity analyst at CFRA Research emphasizing the need for fresh insight to address the problems within the firm’s corporate culture.
I don’t believe the culture can be transformed with internal voices alone because this has been the company’s modus operandi for too long.
Mr. Calhoun assumed the chief executive role in early 2020 following the departure of the previous CEO Dennis Muilen burg in the wake of one of Boeing’s largest scandals.
Within a span of five months, two new 737 Max planes were involved in nearly identical accidents resulting in the loss of 346 passengers and crew.
Upon taking leadership Mr. Calhoun pledged to bolster Boeing’s safety culture and rebuild trust. Boeing’s Stock Takes a Dive Assessing the Fallout from the 737 Max Incident
The departure of Calhoun who has served as Boeing’s CEO since January 2020 marks a significant shift in the company’s top management. During his tenure Boeing has faced mounting scrutiny over the safety of its aircraft particularly the troubled 737 MAX.
Regulatory authorities have raised concerns about design flaws and safety lapses that led to two fatal crashes involving the 737 MAX resulting in the grounding of the aircraft worldwide for nearly two years. The public confidence in Boeing’s ability to ensure the safety of its planes has been severely shaken, posing a formidable challenge for the company’s recovery efforts.
However, in January of this year, an unused emergency exit door detached from a new Alaska Airlines Boeing 737 Max shortly after take-off from Portland International Airport.
An initial report from the US National Transportation Safety Board revealed that four bolts intended to secure the door to the aircraft were missing.
Boeing is now subject to a criminal investigation into the incident and facing legal action from passengers aboard the affected plane.
In a memo to employees on Monday Mr. Calhoun described the Alaska Airlines incident as a watershed moment for Boeing emphasizing the need for humility and complete transparency in the company’s response.
The world is watching us and I’m confident that we will emerge from this moment as a stronger company he stated.
Air safety advocate Ed Pierson a former senior manager at Boeing’s 737 factory in Renton, Washington, expressed disappointment in Mr. Calhoun’s leadership stating that the company has experienced a series of failures under his tenure.
The company deserves better leadership and the passengers who rely on these airplanes deserve better as well said Mr. Pierson who now serves as the executive director at The Foundation for Aviation Safety.
