Finally: Boeing CEO Dennis Muilenburg “Resigns”

The second 737 MAX crash earlier this year caused the biggest crisis Boeing has ever faced. The aerospace giant has long been a respected company in the aviation industry, the global leader in passenger aircraft manufacturing and delivery.

However, as report after report surfaced about internal skeptics of the MAX and its MCAS system and how the plane was fast-tracked through FAA approval, it became clear that there was a deep, underlying issue with the aircraft. And with the safety culture of the FAA and Boeing.

Finally, today, Boeing announced that their CEO has resigned.

Leadership Changes Were Long Overdue

While I’ll never say that all major public relations disasters warrant changes at the top, in Boeing’s case, this is entirely true. The way that CEO Dennis Muilenberg handled the incident has been atrocious. The initial reaction that all was still well and that the airplane should keep flying was the first misstep. It was little wonder that the U.S. was one of the last holdouts when numerous countries had already grounded the MAX. The political clout that Boeing wields within the U.S. is enormous.

Even after the FAA made the decision to ground the aircraft, Muilenberg kept pushing a fast-track timeline to have the plane back in service. It was weeks, then just a few months. Even the FAA was still singing this tune early on. Airlines who were relying on both existing MAX aircraft and new ones to be delivered to plan their routes and schedules were in a bind.

Slowly more reports were revealed that there was a deeper problem. The return-to-service timeline has stretched into months, and now airlines are not even trying to project the 737MAX return before the middle of 2020. One of the most damning and insightful pieces I’ve ever read is a lengthy look at the 737MAX’s underlying problems, lack of training of pilots, and all the issues surrounding the first crash in Indonesia.

The fact that Boeing didn’t provide any explanation about the MCAS system to pilots is bad enough. The lack of training needed for the new aircraft is truly appalling. But that they covered up the fact that pilots testing the system had serious concerns is far worse. A new company trajectory is absolutely in order.

Muilenberg Is Out, Chairman of the Board to Take the Helm

Dennis Muilenberg has been CEO of Boeing for over four years, since July 2015. The news release has stated that he resigned, but it is almost certain that he was asked to step aside and essentially fired.

The new CEO will be the current board Chairman, David L. Calhoun. The interim CEO will be Chief Financial Officer Greg Smith during a transition period while Mr. Calhoun exits non-Boeing commitments.

The news release states 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.”

We can only hope that this will be truly the case. Boeing must be transparent if they want to ever regain public confidence in their aircraft. Letting Muilenberg go may be symbolic, but it is a needed move to show that someone at Boeing needs to be held accountable for putting profits over people.

Will Boeing Ever Restore Public Confidence?

I believe they can, given sufficient course correction, a candid response to the issues of their aircraft, and with proper FAA oversight. But this will only occur if the latter actually happen. Boeing can no longer be in bed with safety regulators. Safety concerns from staff can no longer be swept under the rug. Boeing’s new leadership must show that safety truly comes before profits, even if it means a rough financial road for the aerospace company.

For the FAA’s part, they are actually doing their job and taking the time they need to certify the aircraft as safe.

While I still have my reservations about ever setting foot on a Boeing 737 MAX, knowing the potentially faulty aerodynamic design, it is possible that Boeing will be able to show that an appropriate fix is possible. One thing is for sure: the jet has no been so heavily scrutinized that pilots will be hyper aware of its potential problems. That is, as long as Boeing has revealed them all.

H/T: One Mile at a Time

737 MAX image courtesy of AKA The Beav under CC BY 2.0 license.