Boeing CEO Dave Calhoun will step down at the end of 2024 as part of a broad management shake-up for the embattled aerospace giant.
CEO Resignation: Boeing’s CEO, Dave Calhoun, is stepping down at the end of 2024 amidst ongoing challenges, including the 737 Max crisis.
Management Changes: Larry Kellner, the chairman, won’t seek reelection. Steve Mollenkopf will take over as chair, while Stan Deal, head of commercial airplanes, is leaving immediately. Stephanie Pope will replace Deal.
Industry Pressure: Airlines and regulators are demanding significant changes at Boeing due to quality and safety concerns. These issues have led to production delays, strained relationships with customers, and a decline in Boeing’s stock value.
Larry Kellner, chairman of the board, will not stand for reelection at Boeing’s annual meeting in May, Boeing said Monday.
He will be succeeded as chair by Steve Mollenkopf, who has been a Boeing director since 2020 and is a former CEO of Qualcomm. Mollenkopf will lead the board in picking a new CEO, Boeing said.
And Stan Deal, president and chief executive of Boeing’s commercial airplanes unit, is leaving the company effective immediately. Moving into his job is Stephanie Pope, who recently became Boeing’s chief operating officer after previously running Boeing Global Services.
Quality flaws
The departures come as airlines and regulators have been increasing calls for major changes at the company after a host of quality and manufacturing flaws on Boeing planes.
Scrutiny intensified after a Jan. 5 accident, when a door plug blew out of a nearly new Boeing 737 Max 9 minutes into an Alaska Airlines flight.
“As you all know, the Alaska Airlines Flight 1282 accident was a watershed moment for Boeing,” Calhoun wrote to employees on Monday.
“We must continue to respond to this accident with humility and complete transparency. We also must inculcate a total commitment to safety and quality at every level of our company.
It’s been a bad start to 2024 for Boeing.
“The eyes of the world are on us, and I know we will come through this moment a better company, building on all the learnings we accumulated as we worked together to rebuild Boeing over the last number of years,” he wrote.
“We have another mountain to climb,” Calhoun said.
“Let’s not avoid the call for action. Let’s not avoid the changes that we have to make in our factory. Let’s not avoid the need to slow down a bit and let the supply chain catch up.”
Calhoun, a more than decade-long board member at Boeing, took the top job there in January 2020 after the company ousted its previous chief executive, Dennis Muilenburg, for his handling of the aftermath of two deadly 737 Max crashes.
Production issues
Boeing’s production problems have delayed deliveries of new planes to customers and hampered growth plans.
CEOs of some of the company’s largest customers, including United Airlines, Southwest Airlines, and American Airlines have publicly complained about the delays.
Ryanair, Boeing’s largest airline customer in Europe, said in a statement Monday it welcomes the management changes.
“Stan Deal has done a great sales job for Boeing for many years, but he’s not the person to turn around the operation in Seattle, and that’s where most of the problems have been in recent years,” Ryanair CEO Michael O’Leary said in a video posted to social media platform X.
United’s CEO, Scott Kirby, earlier this month said he urged Boeing to stop making yet-to-be-certified Max 10 planes for the company because it wasn’t clear when the FAA would clear those aircraft to fly.
Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.
Trump nominates Sydney influencer Nick Adams as US ambassador to Malaysia amidst diplomatic concerns and a controversial past.
Donald Trump has nominated Nick Adams, a former suburban councillor from Sydney, to be the US ambassador to Malaysia.
Adams, who has built a significant following as a MAGA influencer, is known for his self-presentation as an “alpha male” and “cultural thought leader”. His nomination is pending confirmation by the US Senate.
Adams previously made headlines as a deputy mayor in Ashfield for a controversial proposal to eliminate pigeons to prevent bird flu. He was suspended from the Liberal Party after verbal abuse towards a journalist in 2009, although he claimed to have resigned prior to the suspension.
Now an American citizen, Adams has founded a nonprofit organisation aimed at promoting conservative values among children. He is known for advocating “patriotic boycotts” against companies perceived to promote progressive values.
In a post following his nomination, Adams expressed gratitude to Trump for the opportunity to serve, highlighting his commitment to America. His past includes an educational background in media and communications, and he has been involved in various publicity stunts, some of which attracted media attention.
Experts have expressed concern over his lack of diplomatic experience, suggesting his appointment could damage US-Malaysia relations, especially given current geopolitical tensions.Adams’s appointment is viewed by some as a sign that Trump does not prioritise the foreign service, potentially leading to challenges in diplomatic relations with Malaysia.
Erin Patterson’s murder trial has increased insurance costs for mushroom foraging tours, though insurers deny a direct link.
In Short:
Erin Patterson’s trial for poisoning relatives has raised concerns about rising insurance costs for mushroom foraging tours in Australia, impacting operators like Feresh Pizarro and Natasha Vorogushin. Despite increased premiums, the Insurance Council maintains these changes are not directly related to the trial, highlighting a need for better public education on fungi.
The trial of Erin Patterson, who poisoned three relatives with death cap mushrooms, has affected mushroom foraging tours in Australia.
Operators report rising insurance costs, though the Insurance Council of Australia states these increases are unlikely linked to the trial. Patterson was recently convicted, prompting concerns among tour guides like Feresh Pizarro, who claims her insurance premiums have skyrocketed, threatening her business viability.
She explains the importance of educating the public about fungi, which play significant ecological roles. Similarly, Natasha Vorogushin from Morwell faces challenges obtaining adequate insurance for her foraging workshops, illustrating industry-wide issues.
Insurance costs
Richard Ford, a tour operator in Mount Macedon, also notes high insurance costs looming over his activities. Despite these challenges, the Insurance Council asserts that insurance adjustments often do not arise from perceived risks associated with singular events, such as Patterson’s case.
University of NSW actuarial studies professor Michael Sherris believes that while premiums are rising generally, this specific trial is unlikely to affect the insurance landscape for mushroom foraging.
US and Israel push for Gaza ceasefire; Netanyahu nominates Trump for Nobel Peace Prize amid renewed peace talks.
The United States and Israel have doubled down on regional stability, with hopes rising for a 60-day Gaza ceasefire and an unexpected diplomatic twist: Prime Minister Netanyahu has nominated Donald Trump for a Nobel Peace Prize.
The two leaders met at the White House, discussing peace talks gaining momentum in Qatar, and reaffirming joint military efforts, including Operation Midnight Hammer, which targeted Iran’s nuclear infrastructure.