Boeing Fires Its CEO Over The 737 Max Crisis

The uncertainty and debacle surrounding the 7373 Max planes of Boeing has resulted in the ouster of the company’s CEO Dennis A. Muilenburg on Monday. It was a about a week ago that the United States based plane maker announced it decision to suspend production of its troubled 737 Max airplanes that have been grounded globally since March this year following two accidents involving the planes within a span of just give months in which a total 346 people died.

Boeing Chairman David Calhoun will replace Muilenburg as the CEO. Muilenburg has been adorning the post since 2015.

Immediately after the announcement, there was a 3 per cent jump in the shares of the company.

“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,” the company said in a statement.

The decision of the company to suspend the production of the grounded 737 Max airplanes starting January was announced by the company about a week ago.

The company said that the suspension of production of one of the most of the popular and best selling planes of the company will be in place till such time that the regulators come to an agreement about when the planes can be allowed to be given a safety certificate for flying again in the air.

A 737 Max, Lion Air Flight 610, crashed off the coast of Indonesia on October  29, 2018 in which 189 of the passengers and crew were killed. Within just give months of the first accident, Ethiopian Airlines Flight 302 crashed en route to Kenya, killing all 157 people on board on March 10 this year.

Support for the troubled craft was voiced by Calhoun despite these tragedies.

“I strongly believe in the future of Boeing and the 737 MAX,” Calhoun said in a statement released by Boeing. “I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation.”

Having joined Boeing as an intern in 1985, Muilenburg is currently at the center of the 737 Max crisis within the company specifically after the emergence of documents that showed that red flags about the planes were raised by airline pilots as well as the own test pilots of the company.

Muilenburg had been removed as the chairman of the company by company board by the time he was grilled by lawmakers on Capitol Hill at the end of October. The company board also replaced the head of its commercial airplane unit, Kevin McAllister shortly after taking action against Muilenburg.

“You’re no longer an Iowa farm boy,” US Rep Peter DeFazio, D-Ore., told Muilenburg during one pointed exchange. “You are the CEO of the largest aircraft manufacturer in the world. You’re earning a heck of a lot of money, and so far the consequence to you has been, ‘Oh, you’re not chairman of the board anymore.’”

(Adapted form NBCNews.com)

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