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Boeing 777X WH001 makes its first flight at Paine Field in Everett, Washington on January 25, 2020.

Boeing CEO to leave in the midst of the security crisis at the end of the year

AIR NEWS BUSINESS WORLD

-The company’s CEO, Dave Calhoun, said he will step down at the end of the year. Stan Deal, Boeing’s head of commercial airplanes, has left.
Boeing said it is reorganizing its leadership amid the most significant safety crisis in years, announcing sweeping changes that include the departure of its chief executive, Dave Calhoun, at the end of the year.

The airline is under increasing pressure from regulators, airlines and passengers as the company struggles to respond to the fallout from an incident in early January in which a panel detached from a Boeing 737 Max 9 airplane in mid-air during an Alaska Airlines flight.

The incident alarmed the company, and renewed concerns about its commitment to safety and quality five years after two 737 Max 8 aircraft crashes that caused the deaths of a total of nearly 350 people.

In addition to Mr. Calhoun’s departure, Stan Deal, head of the division that builds airplanes for airlines and other commercial customers, will leave immediately. He will be replaced by Stephanie Pope, Boeing’s COO, the company said in a statement.

Boeing also announced that its chairman, Larry Kellner, will not run for re-election. The board elected Steve Mollenkopf, an electrical engineer and former Qualcomm CEO, as its new chairman. In this role, he will lead the process of selecting Boeing’s next CEO.

The Federal Aviation Administration, which regulates the aircraft manufacturer, grounded 737 Max aircraft across the United States following the Alaska Airlines incident. When the agency allowed the planes to fly again in late January, it also imposed limits on Boeing’s planned increase in production of its Max planes, foiling the company’s latest attempt to better compete with its European rival Airbus.

A recent F.A.A. audit of Boeing’s Max production revealed dozens of omissions. The agency gave Boeing 90 days to address its problems. The Justice Department also reached out to passengers on the Alaska Airlines flight, informing them that they may be “possible victims of a crime,” according to a copy of one such notice.

Although the airline has announced a number of measures to improve safety and despite its commitments to cooperate with federal investigative agencies, some passengers have reported feeling uncomfortable traveling on its aircraft.

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