For Boeing’s new CEO, saving the Max is just the first hurdle

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WASHINGTON/JAKARTA: Boeing Co’s incoming boss David Calhoun faces a daunting task when he takes over as chief executive officer next year: rescuing the 737 Max while mending the company’s fractured relationship with US regulators. But that’s just the first of the hurdles awaiting him.

Calhoun, who takes the reins Jan 13, will be leading a once-proud company whose reputation for engineering prowess is now in tatters. On top of the grounding of its best-selling plane after two deadly crashes, Boeing has suffered production stumbles with its KC-46 tanker, delays to its 777X jetliner and an embarrassing mishap that caused its new space capsule to miss a rendezvous with the International Space Station over the weekend.

The shares added less than 1% in pre-market trading Tuesday . They climbed 2.9% to US$337.55 at the close in New York, the biggest gain in six weeks, after the company named Calhoun to replace Dennis Muilenburg. Muilenburg, 55, resigned from the post after months of growing pressure from investors and a chorus of calls for his ouster from the U.S. Congress and leading business publications.

Director Larry Kellner, who once led Continental Airlines, will replace Calhoun as chairman. Chief Financial Officer Greg Smith will serve as interim CEO during a brief transition period while Calhoun, a senior executive at Blackstone Group Inc, unwinds a welter of corporate ties.

 

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Boeing CEO Muilenburg steps down, Chair David Calhoun named chiefNEW YORK/SINGAPORE: Boeing on Monday (Dec 23) replaced its embattled chief executive, Dennis Muilenburg, saying a change was needed as it attempts to restore its reputation amid the protracted 737 MAX crisis. Muilenburg became CEO in 2015 and had been with the company since he was an intern.
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