Boeing's CEO is stepping down as the 737 MAX crisis casts a shadow over the aviation giant

Boeing CEO Dave Calhoun will step down at the end of 2024 as part of a wide-ranging management shake-up for the embattled airline giant.

Larry Kellner, Chairman of the Board of Directors, will also resign and will not run for re-election at Boeing's annual meeting in May. He will be succeeded as president by Steve Mollenkopf, who has been a Boeing director since 2020 and is the former CEO of Qualcomm. Boeing said Mollenkopf will lead the board in selecting a new CEO.

Stan Deal, president and CEO of Boeing Commercial Airplanes, will leave the company effective immediately. Stepping into his role is Stephanie Pope, who recently became Boeing's chief operating officer after previously running Boeing Global Services.

The departures come as calls from airlines and regulators grow for major changes at the company after a host of quality and manufacturing defects in Boeing planes. Scrutiny intensified after an incident on January 5, when a door plug on a new Boeing 737 MAX exploded nearly 9 minutes after it crashed. Alaska Airlines A flight.

“As you all know, the Alaska Airlines Flight 1282 accident was a watershed moment for Boeing,” Calhoun wrote to employees on Monday. “We must continue to respond to this incident with humility and complete transparency. We must also instill a total commitment to safety and quality at every level of our company.

“The eyes of the world are on us, and I know that through this moment we will emerge into a better company, building on all the lessons we have accumulated as we worked together to rebuild Boeing over the past years,” he wrote.

Calhoun told CNBC in an interview Monday that the decision to resign was “100%” his.

“We have another mountain to climb,” Calhoun said. “Let's not avoid the call to action. Let's not avoid the changes we have to make in our factory. Let's not avoid the need to slow down a little bit and let the supply chain catch up.”

Calhoun was named to the top job in late 2019 and took the helm at Boeing in early 2020 after the company ousted its previous CEO, Dennis Muilenburg, over his handling of the aftermath of two deadly 737 MAX crashes.

For months, Calhoun promised investors, airline customers and the general public that Boeing would get its many quality struggles under control. The FAA has increased oversight of Boeing, and agency Director Mike Whitaker said after the Alaska Airlines incident that Boeing would be prohibited from increasing 737 production until the FAA was satisfied with the company's quality control.

Boeing's production problems have delayed deliveries of new planes to customers and hampered growth plans. CEOs of some of the company's largest clients, including United Airlines, Southwest Airlines And American Airlines He has complained publicly about the delay.

Ryanair, Boeing's largest customer in Europe, said in a statement on Monday that it welcomed the management changes.

“Stan Dale has done a fantastic sales job for Boeing for many years, but he is not the person who can change the operation in Seattle, and that is where most of the problems have occurred in recent years,” Ryanair CEO Michael O'Leary said. A video was posted on social media platform X.

United CEO Scott Kirby said earlier this month that he urged Boeing to stop making the company's not-yet-certified Max 10 planes because it was unclear when the FAA would allow those planes to fly.

Last week, airline CEOs began scheduling meetings with Boeing executives to express their dissatisfaction with the lack of manufacturing quality controls and lower-than-expected production of the 737 MAX. The meetings were to include Kellner and one or more other board members.

Also last week, Boeing Chief Financial Officer Brian West said at an industry conference that Boeing will burn more cash than expected due to limited production of the 737 MAX.

Boeing stock rose less than 1% in early trading Monday after Calhoun's announcement. Shares are down 26% so far this year.