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NewsBreak: Boeing CEO Muilenburg Forced Out After 737 MAX Fiasco

Published 12/23/2019, 09:15 AM
Updated 12/23/2019, 09:20 AM
© Reuters.
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Investing.com -- Boeing (NYSE:BA) said it had replaced Dennis Muilenburg as chief executive officer, as the company struggles to recover from the multi-billion dollar fiasco over its 737 MAX airplane.

"The Board of Directors decided that a change in leadership was necessary to restore confidence in the company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders," Boeing (NYSE:BA) said in a statement on Monday.

Boeing (NYSE:BA) said it has named current Chairman, David L. Calhoun, as Chief Executive Officer and President, effective January 13, 2020. Calhoun will remain a member of the Board. In addition, Board member Lawrence W. Kellner will become non-executive Chairman of the Board effective immediately.

Chief Financial Officer Greg Smith will serve as interim CEO during the brief transition period, while Calhoun exits his non-Boeing commitments.

The company said a week ago that it would halt production of the 737 MAX, citing a massive inventory backup that it can't shift as long as regulators refuse to declare it airworthy.

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