New Boeing chief executive takes over with 737 MAX crisis unresolved
Boeing Co’s (BA.N) new Chief Executive David Calhoun assumes the job Monday as the U.S. planemaker battles to recover from two fatal crashes of 737 MAX planes that killed 346 people in five months and led to the model’s worldwide grounding in March, APA reports citing Reuters.
Calhoun, 62, a long-time Boeing director named chairman in October after the board stripped Dennis Muilenburg of the title, was named chief executive on Dec. 23 following the board’s firing of Muilenburg amid growing concerns about the company’s relationship with regulators and its handling of the MAX.
Boeing has estimated costs of the MAX grounding at more than $9 billion to date and is expected to disclose significant additional costs during its fourth-quarter earnings release on Jan. 29. Boeing faces rising costs from halting production of the MAX this month, compensating airlines for lost flights and assisting its supply chain. It is also considering raising more debt.
Calhoun, a longtime executive at Blackstone private equity group and corporate crisis manager, is already working to repair the company’s relationships with regulators, airlines and lawmakers. He previously headed a General Electric (GE.N) division that included airplane engines.
Last week, the board and its interim CEO reversed course and recommended regulators require simulator training for pilots before they resume flying the MAX. Directors also authorized the release of more than 100 pages of damaging internal messages that disclosed company efforts to avoid costly simulator training for the MAX amid troubling questions about its culture.
In one email, an employee said the 737 MAX was “designed by clowns who in turn are supervised by monkeys.”A source close to Calhoun said Sunday that it was important employees saw the emails, which Boeing last week described as “completely unacceptable.”
Calhoun wants to “get rid of the culture of arrogance” at Boeing that led to the messages written by a small number of employees, and ensure staff “hold each other accountable,” the person said.
U.S. Representative Peter DeFazio, who chairs the House Transportation and Infrastructure Committee, told reporters Friday he advised Calhoun in a conversation he needs “to do something to relieve the pressure from Wall Street on your organization, which ultimately drove all this.”
Calhoun will be at Boeing’s Chicago headquarters and at its facilities in Washington State this week, the source said, talking with lots of employees.
On Friday, the board approved a $1.4 million annual salary for Calhoun and long-term compensation of $26.5 million if he achieves several milestones, including the return to service of 737 MAX.
Iranian medicine producer interested in cooperation with Azerbaijani companies
Excise rates on alcohol, energy drinks and tobacco produced in Azerbaijan increased
Huawei may sell 100 million 5G smartphones in China in 2020, Japanese CEO claims
29 Turkish troops killed, 36 injured under fire in Syria's Idlib - UPDATED-1
White House appoints coronavirus response coordinator
Turkey stops stemming migrant flow to Europe
US senator calls for no-fly zone in Syria's Idlib
Erdoğan holds emergency meeting as 22 Turkish soldiers killed in Idlib
Three Russian airlines to continue charter flights to South Korea only to get people home
Turkish foreign minister, NATO chief speak over phone
President Erdogan: "Three Turkish soldiers die in Syria's Idlib"
Defence chiefs of US, Turkey discuss situation in Idlib
32 years pass since the provocations committed by SSC together with Armenians in Sumgayit
Pope 'slightly indisposed', cancels one event, Vatican says
Pakistan shuts schools, suspends Iran flights to curb coronavirus spread
Russia to suspend train service between Moscow, Nice amid coronavirus outbreak
Media: Former Iranian ambassador to the Vatican dies of coronavirus
PM Abe asks all of Japan schools to close over coronavirus
Russian FM to meet HAMAS leader
China prepares 100,000 ducks to battle Pakistan's locust swarms
Azerbaijan establishes field hospital tents to test persons coming from Iran
Israel confirms coronavirus in man who returned from Italy
WHO Director General: "This is not a time for fear. This is a time for save lives"
Azerbaijan establishes headquarters in connection with coronavirus threat
Turkey sees 2020 as investment year, says Industry and Technology Minister
Azerbaijan's State Tourism Agency appeals to citizens and tour operators regarding coronavirus risk
Turkey suspends registrations for Umrah pilgrimage
14 flights canceled in Nur-Sultan due to unfavorable weather conditions
Further spread of coronavirus can influence oil demand forecasts, Russian minister says
US and Britain increased imports of crude oil From Russia in 2019
Death toll from coronavirus reaches 14 in Italy
Azerbaijani FM meet with Chargés d'affaires ad interim of Chile
Break in electricity supply of Baku City eliminated
Health ministry: Greece reports two new coronavirus cases
Iran's Vice President tests positive for coronavirus
Russia restricts flights to/from Iran amid coronavirus outbreak
Iran bans Chinese citizens from entering the country
Functioning of 3 stations of Baku Metro restored - UPDATED-1
Air traffic at Tripoli's Mitiga International airport suspended due to shelling
Traffic lights go out of order at about 20 crossings in Baku
Erdogan announces developments in favor of Turkey in the Syrian Idlib
Oil Fund comments on situation regarding coronavirus
Director: “Georgia is in contact with Azerbaijani Health Ministry”
France's Macron says coronavirus 'epidemic is on the way'
Kremlin: No grounds to think coronavirus will affect constitutional amendment vote
President Ilham Aliyev presented Order “For Service to Motherland” 1st Class to Artur Rasizade
20th anniversary of inclusion of Icherisheher in UNESCO’s World Heritage List to be celebrated - ORDER
Earthquake hits Caspian Sea
Azerbaijan approves Hungarian company’s agreement to buy stakes in ACG and BTC
Ambassador lends clarity to suspension of flights to Nakhchivan by Turkish Airlines
Azerbaijan Defense Minister meets with the Personal Representative of the OSCE Chairperson-in-Office
Russia urges tour operators to avoid Italy, South Korea, Iran over coronavirus
Death toll in Iran rises 26 from coronavirus - UPDATED
Azerbaijan commemorates Khojaly genocide - PHOTOSESSION
14 years pass since establishment of the Ministry of Emergency Situations: They always come to your aid in any difficult moments - PHOTOSESSION - VIDEO
First Vice-President Mehriban Aliyeva attended opening ceremony of rebuilt Azerbaijan pavilion at Exhibition of Achievements of National Economy in Moscow - UPDATED
Open Doors Day and the military oath-taking ceremony were held on the occasion of the State Flag Day
An exhibition that also presents President Ilham Aliyev's photo opened in Moscow
Azerbaijan's Ministry of Health: No hospitalisation in Azerbaijan due to coronavirus
Huawei says no impact to 5G supply from coronavirus
Protesters attack bus of China evacuees in Ukraine