First High-Level Ouster from Boeing Since the 2nd 737 MAX Crash

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Kevin McAllister, Boeing's Chief of Commercial Airplanes is the first high-level casualty since the second crash.

Earlier today, Boeing announced Commercial Airplanes Chief Leaving Amid 737 MAX Crisis.

Boeing Co. shuffled the ranks of top management on Tuesday, replacing the head of its jetliner business as it struggles to shore up confidence among customers, investors and lawmakers in the company’s handling of the 737 MAX crisis.

The management change, with Boeing services chief Stan Deal succeeding Mr. McAllister, comes just days after the disclosure of internal messages by a former Boeing pilot that suggested he unknowingly misled regulators in his work on the MAX. The messages angered regulators and lawmakers, driving fresh calls for leadership changes.

Boeing’s board met on Sunday and Monday as the pressure intensified. The disclosure of the internal messages sent Boeing’s stock tumbling, spurred analyst downgrades and sparked a firestorm that threatened to further delay the grounded 737 MAX’s return to passenger service.

In an interview in June, Air Force procurement chief Will Roper called out a Boeing commercial facility in the Seattle area as particularly beset by problems.

“We’ve seen issues across Boeing but the Everett facility, I would say, is the most advanced of those,” Mr. Roper said. “But we’ve seen issues across Boeing and that just tells me that there’s a lapse of culture.”

Global Groundings

Planes and Lawsuits Piling Up

Boeing has continued producing the planes, albeit at a reduced pace. Those planes are stockpiling and will need modifications once the FAA reaches conclusion as to a proper fix.

But that won't be the end of it. Europe and Asia delays are likely to be longer. Europe no longer trusts the FAA which clearly has been in bed with Boeing.

Recall that Boeing asked Trump to not suspend the flights. Trump got that one right.

Trust is gone. Meanwhile, lawsuits over deaths, damages, lost earnings, and cancelled flights continue to mount.

Mike "Mish" Shedlock

Comments (24)
No. 1-11
Herkie
Herkie

I wonder which of the institutional investors demanded heads must roll to get this done? Vanguard is my guess, they may not be very sincere but as one of the largest shareholders on the planet they are sensitive to both losses through falling share price and their public image in how they wield their power.

Top 5 shareholders in Boeing....

Stockholder Stake Shares owned Total value ($) Shares bought / sold Total change The Vanguard Group, Inc. 7.02% 39,482,204 15,021,794,156 +279,683 +0.71% T. Rowe Price Associates, Inc. 6.35% 35,740,551 13,598,207,439 +2,607,364 +7.87% Newport Trust Co. 5.45% 30,669,091 11,668,669,053 +298,466 +0.98% SSgA Funds Management, Inc. 4.64% 26,128,035 9,940,933,476 -151,127 -0.58% BlackRock Fund Advisors 4.46% 25,089,817 9,545,922,674 +449,530 +1.82%

Between them they hold 156 million shares, what they say is the law at Boeing, so it seems to me they were part of the problem of putting profits ahead of safety, and they are also among those that have the most responsibility to see the culture at Boeing changes. We should not have to wait years for findings from federal bureaucracy, if capitalism was working the way it was supposed to government would not even need to be involved.

If capitalism was working the way it is supposed to government bureaucracy need not take years to get involved and fix the mess, but it doesn't, and it never has, the republican, laissez faire, unregulated capitalism so many here advocate will gives us much worse than jets flying nose first into the dirt, remember the company store, being paid in scrip that could only be spent there? When corporations were monopolies that covered up everything? Hired Brinks and other private armies to kill people and get their workers back in line? Melamine in the goddamned baby formula?

Nah, you want a perfect world you start punishing shareholders for putting greed ahead of safety. These shareholders should be fined about half the share price of Boeing and see if they do not take a much more attentive stance on future corporate dealings. Profit is good, it employs people, greed is bad, it kills people.

Greggg
Greggg

Boeing... boing, boing, boing. Going South-west- Airlines.

stillCJ
stillCJ

Editor

Hard to believe Boeing could screw that up so badly. I have flown on the 737-700 & 800 many times and like them.

mark0f0
mark0f0

"“We’ve seen issues across Boeing but the Everett facility, I would say, is the most advanced of those,” Mr. Roper said. “But we’ve seen issues across Boeing and that just tells me that there’s a lapse of culture.”"

BTW, the 737Max's aren't produced at Everett, but are rather produced at Renton. Everett is where the 747/767/KC-46/777/787s are produced.

Six000mileyear
Six000mileyear

The government can't be too harsh on Boeing. Imagine the economic downturn that would rip through the country. Boeing is also a big player in space exploration, and space has military advantages.

Casual_Observer
Casual_Observer

3 other CEOs announced their departures. This usually happens when the music is about to stop and people head for the exits.

KidHorn
KidHorn

I thought this would blow over after a few months. I was wrong.

SleemoG
SleemoG

I travel a lot and I have options. I will NEVER book a flight on a 737MAX and I'm certain there's millions of others out there just like me.

This aircraft is dead. Dismantle them for parts.

Cocoa
Cocoa

I assume Boeing may dump their commercial business at some point...military is the way to go. The military is used to getting people killed. Consumer aircraft carriers have too many regulations, lawsuits and the margins are not as tasty

Webej
Webej

Not incompetence and greed. These are easy sins to admit when not doing so would be worse. Fraud and the rule of law is what should be being discussed.

Country Bob
Country Bob

No one at the FAA is being held accountable