Boeing has fired chief executive officer Dennis Muilenburg following a year of scandals and industrial setbacks caused by two fatal crashes of its 737 MAX jet. This change in management comes in the middle of Boeing attempts to get approvals for its grounded best-selling jet.
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Boeing fires CEO Dennis Muilenburg
Dennis Muilenburg started as an intern in Boeing in 1985 and to this date, the grounding of Boeing was his biggest scandal. Muilenburg has been CEO of Boeing since July 2015. Boeing has fired chief executive officer Dennis Muilenburg after what can be described as a year full of setbacks for Boeing. He lost his chairman position in early December.
Former Boeing CEO Dennis Muilenburg
“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.” Boeing released in their official press statement.
Chairman David Calhoun will take over as CEO and president effective January 13. Boeing Chief Financial Officer Greg Smith will serve as interim CEO during the transition period.
Boeing suspends production of 737 MAX
The 737 MAX aircraft were involved in two fatal crashes. Both crashes happened in a span of five months. What followed was a global grounding of the 737 MAX aircraft in March of 2019. However, they did not stop the production of the aircraft anticipating that it will get the green light from the Federal Aviation Administration.
Boeing released a press statement in which they announced they will temporarily suspend production of the 737 MAX aircraft. The decision followed after the Federal Aviation Administration refused to approve the return of the 737 MAX aircraft to service before 2020 despite Boeing having different expectations. They did not disclose how long this suspension of production will last.
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