Boeing fires CEO Dennis Muilenburg, as the company struggles with 737 Max crisis - CNBC

Boeing on Monday fired CEO Dennis Muilenburg as the company struggles to regain the trust of regulators, customers and the public after two fatal crashes of its best-selling plane, the 737 Max, killed all 346 people aboard.

Chairman David Calhoun will become the manufacturer's new CEO on Jan. 13. The transition period will allow him to exit his non-Boeing commitments. Board member Lawrence Kellner will become Boeing's non-executive chairman of the board, effective immediately.

Shares of the stock rose 3% in morning trading.

David Calhoun, Boeing

Source: CNBC

The resulting turmoil from the crashes has consumed Boeing. The two crashes sparked numerous investigations, including a federal criminal probe, about the aircraft's development and certification by the Federal Aviation Administration in 2017. Earlier this month, Boeing said it would suspend production of the 737 Max early next year.

The company's board removed Muilenburg as chairman in October saying he could better focus on bringing the Max back to service, a process that has been delayed by additional questions from regulators. Earlier this month, the FAA's chief said that he would not rule out fining Boeing for failure to make disclosures about the 737 Max.

Muilenburg became CEO in 2015 and had been with the company since he was an intern.

Boeing replaced the head of its commercial airplane unit, Kevin McAllister, shortly after removing Muilenburg as chairman. Stan Deal, a three-decade Boeing employee who most recently led its global services business, replaced McAllister.

This is breaking news. Please check back for updates.

2019-12-23 14:01:00Z
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