Boeing Board Fires Its Chief Executive
The decision to fire Muilenburg is primarily tied to his current handling of the scandals surrounding Boeing ever since two 737 Max jets crashed and resulted in the deaths of 346 individuals.
Since the two crashes, production of the 737 Max has been halted, which has affected a production chain of over 8,000 different companies. Boeing has been attempting to resume production of the 737 Max as soon as possible, however, the company has faced multiple delays.
David Calhoun, Boeing’s chairman will replace Muilenberg as chief executive. Calhoun will fill the role on January 13th.
Boeing’s board made the decision to fire Muilenberg early on Sunday evening. The board made the decision unanimously.
The 737 Max will not be able to resume production and be ungrounded until the Federal Aviation Administration approves fixes to the airplane’s MCAS, an automated system that was responsible for malfunctions leading to both crashes. Boeing has yet to provide all the necessary documentation that would further progress the regulatory process.
Since the scandal has hit Boeing, stocked has fallen in value by 20%, leading to a loss of $8 billion for the company.