Boeing Look To David Calhoun To Guide Them Through Their Tough Period
Currently experiencing the worst period in its 103 year history, Boeing is now seeking to turn over a new leaf in the new year.
The plane manufacturing company recently chose to part ways with their former CEO Dennis Muilenburg. Muilenburg had been CEO of Boeing as well as chairman of its board since 2015.
He was removed as Chairman of the board in October and replaced by David Calhoun.
In recent months as CEO Muilenberg faced major backlash and criticism for Boeings business practices. After the second deadly crash of the Boeing 737 Max occurred in March the model was grounded internationally by the regulator. At that point the 737 was Boeings bestselling commercial jet
Although Boeing worked towards solving the issues that caused the two crashes the 737 remains grounded. The crucial relationship between Boeing and the Federal Aviation Industry seemed to have also deteriorated due to comments made by the company’s top leaders, including Muilenburg.
Upon parting ways with Muilenburg and appointing Calhoun Boeing stated “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.”
David Calhoun is set to begin his duties as the new CEO of the struggling company on the 13th of January 2020. Calhoun will have the massive task of restoring faith in the company.
Although his appointment as Boeing CEO saw stock rise by 3% there’s still a lot that Calhoun needs to do to return the company to where it was before.
His primary objective will be to get the regulator to clear the 737 for flight. The grounding of the plane has caused Boeing to halt its production in the upcoming year.
The company has suffered delays in the development of its 777X wide body aircraft. Demand for larger planes has dropped and Boeing announced a cut to its 787 production from 14 to 12 a month “given the current global trade environment.” Boeing is also facing a general slowdown commercial aircraft demand since a mid-decade peak.
The experienced CEO definitely has his work cut out for him.