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Ex-Boeing Chief Executive Muilenburg
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 Mr 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.
"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.
Mr Calhoun "is not
the right person for the job", he added.
Zipporah Kuria, whose
father was also killed on the Ethiopian Airlines flight, said Mr 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 told the BBC.
'Necessary' change
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.
While the company had
been hoping to have the best-selling jet back in the air by the end of this
year, US regulators have made it clear that it would not be certified to return
to the skies that quickly.
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".
Mr Calhoun, a private
equity executive, will take over from 13 January.
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.
Media captionSenator
says he "would walk before I got on a 737 Max"
Despite the ouster, some
of the firm's harshest critics in Washington said they still had questions
about the firm's commitment to change.
Senator Richard
Bumenthal said: "The company needs new leadership across the board who
will take safety seriously."
The company needs new
leadership across the board who will take safety seriously. In the meantime,
Boeing must disclose all documents & employee communications relating to
possible defects on its aircraft.
Michael Stumo, who lost
his daughter Samya Rose on the Ethiopian Airlines flight and has organised
victims' families against Boeing, called the resignation a "good first
step toward restoring Boeing to a company that focuses on safety and
innovation".
"The next step is
for several board members who are underperforming or unqualified to
resign," he said.
'Software problem'
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.
But US lawmakers, who
are investigating the company, have said the firm was aware that the software
system could be unreliable. They have accused the company of trying to hide the
risks and rush the plane back into service.
Congressman Peter
DeFazio, who leads a committee investigating Boeing, had called for Mr
Muilenburg's resignation in an interview with the New York Times, published
over the weekend.
In a statement on
Monday, he said the shake-up was "long overdue".
Mr Muilenburg first
joined Boeing in 1985. He led the company's defence, space and security
division prior to his appointment as chief executive in 2015.
He was stripped of his
role as chairman of Boeing's board of directors in October and later agreed to
give up his bonus. However, Boeing, including Mr Calhoun, had continued to
express confidence in him.
Dennis Muilenburg's
departure was inevitable, although the timing was unexpected.
Since the two accidents,
he has faced intense criticism over the corporate culture that existed at
Boeing on his watch, and over the company's relationship with regulators.
Questions have been
asked about how a seemingly flawed aircraft was allowed into service in the
first place, and why it was allowed to continue flying after the first
accident. There have been claims - emphatically denied by the company - that it
prioritised profits and speed of production over safety.
His response to the
crisis has also come under fire. Although he insisted that Boeing
"owned" its failures, he also repeatedly said that the crashes were
the result of a chain of events. This was seen by some as an attempt to divert
blame away from the aerospace giant.
The final humiliation
came last week, when Boeing announced it would have to suspend production of
the 737 Max, because regulators had yet to clear the aircraft as safe to fly
again. For months, Mr Muilenburg had insisted the plane would be back in the
air by the end of the year.
He had lost credibility,
and the board decided he had to go. (BBC)