It’s a complete overhaul at the top of executive management for Boeing. This week, investors learned that the leading American aircraft manufacturer will have a new Chief Executive Officer and Chairman of the Board by end of this year. This complete shift in leadership all at once demonstrates the difficulties and the corporate crisis the company finds itself in, particularly vis-à-vis its European counterpart, Airbus. The market capitalization of Boeing currently stands at $ 120 billion, while the one of Airbus at $ 135 billion.
Boeing CEO David Calhoun posted his resignation, and he will step down by the end of 2024. Meanwhile, Board Chair Larry Kellner will also be relieved of his duties later this year. In addition, the Chief Executive of Boeing Commercial Airplanes retired effective immediately. There is currently a scouting process for the new CEO, with apparently as many as five top candidates, to lead Boeing in these turbulent, unprecedented times. The Arlington, Virginia based company needs strong leadership and new ideas, if it wants to compete with Airbus in the future. The overall sentiment is that Boeing needs to take accountability for its operational mistakes, and demonstrate a new medium to long-term plan to fix them and avoid them altogether going forward.
Critics of Boeing argue that the firm prioritized financial interests over safety concerns, particularly with share buybacks at the cost of capital expenditures and investments. In recent times, multiple malfunctions occurred and caused emergency landings. Historically the United States’ leading manufacturer of airplanes, the concern of aviation industry experts is that it did not ensure safety and innovate enough over the years. The Union of Boeing wants change, and is currently in talks for a board seat and direct influence on safety matters at the company. There used to be the slogan “If it’s not Boeing, I’m not going”. Now the company needs to regain the trust and confidence of passengers, before investors. The newly announced, significant changes in leadership mean only the first step in the right direction.
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