Boeing CEO and chairman to go by year’s end as MAX crisis continues

In a letter to Boeing staff, Calhoun, who has been CEO of Boeing since 2020, said he had been considering the right time for a CEO transition “for some time” in conjunction with the board of directors.

“I want to share with you that I have decided this will be my last year as CEO of our great company, and I have notified the board of that decision,” he said.

“I originally agreed to take on the role of CEO of Boeing at the board’s request, stepping down as board chair in the process, because of the unprecedented circumstances the company was facing at that time.

“It has been the greatest privilege of my life to serve in both roles and I will only feel the journey has been properly completed when we finish the job that we need to do. We are going to fix what isn’t working, and we are going to get our company back on the track towards recovery and stability.”

Calhoun said the Alaska Airlines Flight 1282 accident in January, where an emergency exit door plug blew off a brand-new 737 MAX 9 over Portland, was a “watershed moment” for the company. Boeing is now facing a criminal investigation over the incident, which led to the sacking of the head of its 737 program.

“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,” said Calhoun.

“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.”

Kellner will be replaced as chair of Boeing by Steve Mollenkopf, who will lead the search for Calhoun’s successor. In a statement, Kellner said that Calhoun’s departure marks the “right time” for his own succession.

“Steve is the ideal next leader to take on the role of board chair, and it is important that the CEO selection process be led by a new chair who will stay at the helm as a partner to the new CEO.

“With a strong board, an excellent management team and 170,000 dedicated Boeing employees, I am fully confident in our company’s future,” he said.

In a statement on LinkedIn, Deal said his immediate retirement from Boeing Commercial Airplanes was the result of “carefully weighing the needs of [his] family and that of [his] company”.

“I know our Commercial Airplanes team will do well under the very capable leadership of Stephanie Pope. She is an outstanding leader, long-time colleague, and friend,” he said.

“She knows our business and I have full confidence that she will continue to lead the company forward and do what is best for the team.”

While Qantas has mainly chosen Airbus for its fleet renewal program, Virgin Australia has 10 737 MAX 8 aircraft still on order, along with 25 MAX 10s, which have been delayed by the ongoing troubles at Boeing; the airline now expects to receive only four more MAX 8s before the end of the year.