WASHINGTON, Dec 24 (NNN-AGENCIES) —Boeing has fired its chief executive, Dennis Muilenburg, in a bid to restore confidence in the firm after two deadly crashes involving its 737 Max plane.
More than 340 people died in the disasters, prompting accusations that Boeing put profit before safety.
Families of the victims welcomed Muilenberg’s resignation as overdue.
But they said Boeing’s decision to replace him with a long-time board member raised questions about its commitment to change.
Boeing named David Calhoun, who has served on the firm’s board since 2009 and is its current chairman, as chief executive and president.
Calhoun, a private equity executive, will take over from Jan 13.
“While the resignation of Mr Muilenburg is a step in the right direction, it is clear that the Boeing Company needs a revamp of its corporate governance,” said Paul Njoroge, who lost his wife, three children and mother-in-law when Ethiopian Airlines Flight 302 crashed in March.
Calhoun “is not the right person for the job”, he added.
Zipporah Kuria, whose father was also killed on the Ethiopian Airlines flight, said Muilenburg should have been replaced “a long time ago” but responsibility for the crashes is shared.
“I feel as though a lot more people should have resigned including the person who’s becoming CEO,” she said.
Boeing has been under intense scrutiny since two 737 Max planes crashed within five months of each other, first in Indonesia and then in Ethiopia.
The 737 Max fleet has been grounded worldwide since March.
Last week, Boeing said it would halt production of the aircraft.
Then on Friday, the company’s reputation took another hit when its Starliner spacecraft suffered technical problems that prevented it from taking the right path to the International Space Station.
Boeing’s board said it had “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”.
Lawrence Kellner, a board member since 2011, is to become non-executive chairman immediately.
“Under the company’s new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA [Federal Aviation Administration], other global regulators and its customers,” it said.
Air safety officials investigating the tragedies have identified an automated control system in the plane, known as MCAS, as a factor in both crashes.
Boeing has said the MCAS software system, which relied on a single sensor, received erroneous data, which led it to override pilot commands and push the aircraft downwards.
It has said it is fixing the software and has overhauled its review procedures. — NNN-AGENCIES
