Boeing sacks CEO Muilenburg amid 737 MAX crisis

• Company’s $9bn loss threatens consumer confidence, U.S. economic growth

Isola Moses

Boeing Co has sacked 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 aircraft manufacturer, Reuters reports, beset by one setback after another following the two air disasters, dropped Muilenburg December 23, 2019.

It became increasingly clear that he was making little headway resolving a crisis that has cost it $9 billion, hurt suppliers and airlines, and now threatens to cut the pace of U.S. economic growth.

Chairman David Calhoun, a former General Electric executive, will take over as CEO and President, effective from January 13, 2020, Boeing said. Until then, Chief Financial Officer Greg Smith will run the world’s largest planemaker.

“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, December 22.

Agency report said Muilenburg could not be reached for comment, as Boeing shares, which have dropped more than 20% over the past nine months, closed up 2.9%.

The 737 MAX has been grounded since March 2019 after two crashes in Indonesia and Ethiopia killed 346 people within five months.