Boeing CEO Dennis Muilenburg has been resigned company says
Boeing CEO Dennis Muilenburg has resigned after two deadly crashes of 737 Max jets and its suspending in production, the company announced Monday morning. Muilenburg will be replaced by the current Chairman David Calhoun.
The two crashes of 737 Max jets took lives of total 346 people. According to Boeing, one of the causes of crashed was the aircraft’s automatic flight control system. Last week the company announced that the jet production will be halted. United Airlines has also previouslyadded that it would pull the Boeing 737 Max jetliners from flight schedule until June.
"I strongly believe in the future of Boeing and the 737 MAX. I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation," Calhoun said in a statement.
The decision of Muilenurg firing came the day after the Boeing Starliner aborted the mission to the international Space Station due to an “automation” error that lead to that the spacecraft didn’t reach its correct orbit, according to NASA.
"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 Monday.
David Calhoum, a former General Electric executive who ran that company's jet engines division, and also is the lead director of the board of the construction equipment maker Caterpillar, will occupy the CEO’s chair on January 13. Until then, CFO Greg Smith will serve as interim CEO.
"Over the next few weeks as we transition to new leadership, I am committed to ensuring above all that we meet the needs of our stakeholders – especially our regulators, customers and employees – with transparency and humility," Smith added.
A source from Boeing told ABC News that Muilenburg may still walk away with $39 million in cash and stock as part of his severance package.