Boeing CEO to Step Down Amid Safety Crisis

Boeing CEO Dave Calhoun, along with the company's chairman and the head of its commercial airplane unit, announced plans to depart by year-end. The decision comes amidst intense scrutiny from regulators and growing dissatisfaction from major airline customers.

Calhoun's resignation follows a tumultuous period marked by ongoing safety issues, including the recent incident involving an Alaska Airlines 737 Max, where a door plug blew out mid-flight. With over five years of turbulence, including the 737 Max crashes that claimed 346 lives, Boeing's losses have surged past US$31 billion.

In Calhoun's announcement, he acknowledged the gravity of the Alaska Airlines incident, calling it "a watershed moment for Boeing." Despite affirming his commitment to rectify the situation, criticisms have mounted, with industry analysts questioning Boeing's leadership effectiveness under Calhoun's tenure. “We are going to fix what is not working, and we are going to get our company back on the track towards recovery and stability”, said Calhoun.

The departure also underscores airlines' frustrations with Boeing's quality control and delivery delays. Michael O'Leary of Ryanair voiced concerns over Boeing's attention to detail, indicating a broader dissatisfaction among major carriers. “We welcome these much-needed management changes in Seattle,” he said.

United Airlines, heavily reliant on Boeing jets, expressed disappointment over quality issues and delivery delays, exacerbating its operational challenges. The company board also referred to the Alaska Airlines incident as “straw that broke the camel’s back”.

Meanwhile, the International Association of Machinists District 751, representing Boeing's sizable workforce, seeks a board seat, aiming to amplify its influence within the company. The move coincides with contract negotiations, highlighting growing tensions between Boeing and its labor force amidst the ongoing 737 Max crisis.