PARIS - Boeing Co has fired Chief Executive Dennis Muilenburg after repeatedly failing to contain the fallout from a pair of fatal crashes that halted output of its best-selling jetliner and tarnished its reputation with airlines and regulators.
"The board of directors decided that a change in leadership was necessary to restore confidence," a Boeing statement said. A Boeing official said the board had deliberated over the weekend and decided to oust Muilenburg in a phone call on Sunday.Boeing shares, which have dropped more than 20% over the past nine months, closed up 2.9%.
Boeing on Monday said shipments from 737 suppliers will be suspended for a month starting mid-January, adding that it was uncertain when production would restart.Muilenburg's departure followed a week of dramatic setbacks for Boeing, which vies with Europe's Airbus for leadership of the $150 billion jet industry.
In October, Boeing turned over 2016 messages to the FAA between Forkner and another pilot that said he might have unintentionally misled the FAA and raised questions about the performance of a key safety system during testing. Boeing had earlier turned over the documents to the Justice Department, which has an ongoing criminal investigation into the MAX.Based on Boeing securities filings, Muilenburg may be eligible for nearly $39 million in severance.
"It’s clear Dennis Muilenburg’s ouster was long overdue," he said."Under his watch, a long-admired company made a number of devastating decisions that suggest profit took priority over safety."Calhoun, who is resigning from Blackstone to take the top job at Boeing, was respected by the industry, said aerospace analyst Richard Aboulafia of Teal Group.
Muilenburg, an engineer who started at Boeing as an intern in 1985, fought a rising tide of public and regulatory scrutiny to try to steady the company during the crisis. He initiated a broad safety initiative involving heavy investments in training but was unable to shake off a set of awkward public appearances.
Some report that he resigned. You along with others say he’s fired. What is actually the true story media people?
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