Boeing CEO Fires The Fruit Of Two Accidents

JAKARTA - Boeing Co fired CEO Dennis Muilenburg after repeatedly failing to withstand the effects of the two fatal crashes of the Boeing 737 MAX that halted production of the best-selling jet aircraft in addition to tarnishing the company's reputation with competitors and regulators.

Boeing, which suffered a performance setback after two plane crashes, fired Muilenburg because it was judged to have done little to solve the crisis, which cost US $ 9 billion.

Boeing has made suppliers lose and is now putting the pace of US economic growth at risk. David Calhoun, a former General Electric executive, will take over as CEO and president starting January 13 next year, Boeing said.

Until then, Chief Financial Officer Greg Smith will run the company for a while as well as prepare a grand plan. "The board of directors decided that a change in leadership is necessary to restore confidence," said a Boeing statement as quoted by Reuters, Tuesday, December 24.

A Boeing official said that the board of directors had been in talks over the weekend and decided to fire Muilenburg by phone on Sunday.

However, Muilenburg could not be reached for comment. Boeing shares, which have fallen more than 20 percent over the past nine months, closed up 2.9 percent yesterday.

Two Boeing 737 MAX crashes each in Indonesia and Ethiopia have killed 346 people within five months. Boeing is struggling to improve relations with the US government and international regulators to regain the jet's operating license.

After temporarily halting the operation of 400 of its kind, Boeing acknowledged this month it would not be able to reach its flying target this year and announced it would stop production of the 737 MAX in January.

Economists predict that doing so will reduce overall US economic growth by half a percentage point. Muilenburg's dismissal follows a week of dramatic losses for Boeing, which is competing with European Airbus (AIR.PA) for leadership of the jet industry worth $ 150 billion.