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The new president of "Boeing": The company faces a "pivotal moment"

The new president of "Boeing": The company faces a "pivotal moment"

By Mounira Magdy

Published: March 29, 2024

The new CEO of troubled commercial aircraft company Boeing said the aircraft manufacturer faces a "pivotal moment" as it works to enhance quality and address significant concerns from regulators and airline customers after a panel from a 737 Max 9 flew off in January.

Stephanie Pop, who was appointed President and CEO of Boeing Commercial Airplanes on Monday, said in an email message to employees on Wednesday seen by Reuters, "This is a pivotal moment for us, and we have serious work ahead to build trust and improve our operations."

Pop was appointed Chief Operating Officer in December, after holding a wide range of previous roles at Boeing.

Boeing CEO Dave Calhoun announced on Monday that he will leave his position by the end of the year, while Stan Deal, the longtime head of the company’s commercial airplanes division, retired immediately, and Chairman Larry Kellner stepped down. He was replaced by director Steve Mollenkopf as chairman.

Larry Kolb, CEO of General Electric, whom industry analysts described as a potential replacement for Calhoun, said at an event in New York that he is fully focused on GE Aerospace and will return to its headquarters in Ohio, confirming, "There is no better business. There is no better job."

He said Boeing’s board will focus on leadership qualities in its search for a CEO. Kolb said, "This is a big company facing a huge challenge right now," pointing out that the aircraft manufacturer must consider the long-term product and company strategy. "That will not be enough to overcome the challenges of 2024."

Boeing has faced severe criticism since a door connector panel tore off a new Alaska Airlines 737 MAX 9 at 16,000 feet.

Following the incident, the Federal Aviation Administration grounded Max 9 aircraft for several weeks, prevented Boeing from increasing the production rate of the Max, and ordered it to develop a comprehensive plan to address "systemic quality control issues" within 90 days.

Boeing’s production fell below the maximum 38 MAX aircraft per month allowed by the FAA. The Department of Justice opened a criminal investigation into the Max 9 incident.

Pop said, "Our path forward is clear. We will put safety and quality above all else in order to meet and exceed the expectations of regulators, customers, the aviation public, and each other."

She said she will spend the next two weeks meeting and interacting with her team while working to strengthen and implement the company’s safety and quality improvement plan.

Federal Aviation Administration administrator Mike Whitaker earlier said the agency and Boeing hope to identify the milestones the manufacturer must meet by the end of March.

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