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Max 737 accidents

Boeing CEO resigns after two accidents

Boeing CEO Dennis Muilenburg resigned due to the deadly debacle of Max 737 that plunged the aircraft manufacturer into a crisis and damaged his reputation as one of the United States unconditional industry.

The company's board of directors said a change in leadership was needed to restore confidence in Boeing while working to repair relations with regulators and others in the wake of two Max 737 crashes that killed 346 people in total.

The Max connected with everyone after the two disasters: one in October 2018 off the coast of Indonesia, the other in 2019 in Ethiopia. Boeing has been heavily criticized in Capitol Hill and elsewhere for the design and deployment of the aircraft and has not been able to obtain regulatory approval to return the aircraft to the air.

Last week, the crisis within the company deepened when Boeing announced that it will suspend production of the Max in January. And in another major setback for the aerospace giant, Boeing's new Starliner space capsule took off Friday during an unmanned test flight to the International Space Station.

Boeing said Muilenburg will leave immediately and that the current chairman of the board, David Calhoun, will take over as CEO on January 13. The company declined to make Calhoun or other executives available for comment.

Investigators say that in both accidents, a faulty sensor caused the plane's new automatic MCAS flight control system to push the nose of the plane down, and the pilots could not regain control.

Ababu Amha, who lost his wife, a flight attendant, in the second accident, which involved an Ethiopian Airlines plane, welcomed Muilenburg's departure.

"This is something we have been asking and fighting for quite a while," he said. “The CEO reluctantly and deliberately kept the plane in service after the Lion Air accident. The Ethiopian Airlines accident was an avoidable accident. "

The resignation, however, is not enough, Amha said: "They should be responsible for their actions because what they did was a crime."

Muilenburg was criticized for Boeing's initial response to the first accident, in which he and the company seemed to suggest that the pilots were to blame. Muilenburg's critics increased in recent months as news reports and congressional investigations revealed internal documents that revealed concern within Boeing's ranks over key design features in the Max, especially the new control system of flight. .

At the end of October, legislators and relatives of the passengers who died asked the CEO to resign.

Earlier this month, the head of the Federal Aviation Administration expressed concern that Boeing was pushing for an irreversibly fast return of Max. Production closure is likely to affect the US economy. UU. And the vast network of 900 Boeing companies that manufacture engines, bodies and other parts for 737.

With Boeing in crisis, sales at Airbus, its main rival, increased by 28 during the first half of the year.

Board member Lawrence Kellner, former CEO of United Airlines, will become non-executive chairman of the board. In a statement, Kellner said Calhoun has "a deep experience in the industry and a proven track record of solid leadership, and recognizes the challenges we face. The board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new path for our company. "

The accidents and decisions that were made before those tragedies shook Boeing.

“The company seems to have known about security problems for quite some time. This indicates that there could be more fundamental cultural problems in the company, "said Tim Hubbard, an administration professor at the Mendoza School of Business at the University of Notre Dame.

“In addition, the recent failure of a rocket test launch indicates that the company may not be as innovative as before. Increasing innovation and changing the culture of a company the size of Boeing is a challenge. One way to drive changes in Boeing could be new leadership. "

Boeing stock trading stopped before the announcement, but increased by 3 after the opening bell.

Muilenburg's departure was greatly delayed, said Robert Clifford, a Chicago lawyer who represents several people who are suing Boeing after losing relatives in the Ethiopia accident.

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