Boeing CEO Dennis Muilenburg resigns, David L. Calhoun to replace him

US-based aerospace manufacturer Boeing on Monday said that Dennis Muilenburg has resigned from his position as the chief executive officer (CEO) effective immediately. The company faced a series of setbacks under his tenure, including two fatal crashes of its top-selling 737 Max airplane.

Muilenburg will be replaced by David Calhoun, who had served as chairman since October. Calhoun will assume the position of CEO and president on January 13, while CFO Greg Smith will lead the company till then.

Muilenburg's exit followed the Federal Aviation Administration (FAA) order grounding 737 Max jets after two fatal crashes killed 346 people. After two fatal crashes that claimed 346 lives, the 737 Max jets have been grounded across the world since March 2019. The jet faces cascading delays, despite the company's efforts to get a software fix cleared by the regulators. Last week, Boeing said it would temporarily suspend 737 MAX productions starting in January, 2020.

"The company announced that Dennis A. Muilenburg has resigned from his positions as Chief Executive Officer and board director effective immediately. Boeing Chief Financial Officer Greg Smith will serve as interim CEO during the brief transition period, while Calhoun exits his non-Boeing commitments," the aerospace manufacturer said in a statement.

Also Read: Boeing to suspend production of grounded 737 MAX next month

The company said that Calhoun, who has served on Boeing's board since 2009, will remain a member of the board. In addition, board member Lawrence W. Kellner will become non-executive chairman of the board effective immediately, it added.  

"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," Boeing said.

Under the company's new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the Federal Aviation Administration, other global regulators and its customers, the aerospace major said.

Also Read: Govt weighs tougher rules for Boeing 737 MAX to ensure safety

"On behalf of the entire board of directors, I am pleased that Dave has agreed to lead Boeing at this critical juncture," Kellner said. "Dave has deep industry experience and a proven track record of strong leadership, and he recognises the challenges we must confront. The board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company."

Commenting on his new role, Calhoun said, "I strongly believe in the future of Boeing and the 737 MAX. I am honoured to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation."

Edited by Chitranjan Kumar