Boeing CEO Dave Calhoun's Tenure Under Scrutiny As Airplane-Maker Faces 'Extreme Embarrassment' Amid Series Of Crisis

Boeing Co BA CEO Dave Calhoun is under intense scrutiny as the company grapples with a series of crises. Despite the ongoing turmoil, Calhoun has managed to retain his position, leaving industry experts and analysts perplexed.

What Happened: Boeing has been embroiled in a series of crises, ranging from mid-flight emergencies to severe business setbacks, reported CNN. The company’s stock has plummeted by over a quarter of its value this year, with a series of incidents further tarnishing its reputation.

"It's become an extreme embarrassment," Richard Aboulafia, a longtime aviation analyst said. "The board seems weirdly absentee, investors seem weirdly complacent, and the government doesn't seem to have a mechanism for dealing with this."

These incidents include a mid-flight blowout on a Boeing plane, which led to federal investigations pointing to potential negligence by Boeing workers. The company has also been accused of delaying the provision of crucial evidence to investigators.

On top of this, a Boeing 787 Dreamliner experienced a sudden plunge mid-flight, injuring 50 passengers. The same day, a Boeing whistleblower, John Barnett, died in an apparent suicide just before he was scheduled to testify about safety concerns he had raised.

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Despite these issues, Calhoun, who has been at the helm since 2020, remains in his position. His total compensation was even increased in 2022, despite ongoing problems with the 777 program and quality control issues with the 787.

Calhoun took over a company in deep distress following two fatal 737 Max crashes, which led to a nearly two-year-long grounding of the crucial plane and a years-long crisis. The company’s problems are widely attributed to the 1997 merger with McDonnell Douglas, which saw a shift in leadership priorities from quality to profit.

Calhoun was hired to restore Boeing’s engineering roots, but under his leadership, the company continues to face significant challenges.

Why It Matters: The recent crises at Boeing have put Calhoun’s leadership under a microscope. This is not the first time that Calhoun has faced criticism during his tenure. Earlier this year, in January, Calhoun was urged by U.S. lawmakers to prioritize safety over profits following a 737 MAX 9 safety lapse. This was after a 737 MAX 9 experienced a mid-air cabin panel blowout, an incident for which Calhoun did not provide an explanation during a meeting with U.S. senators.

Despite the ongoing issues, Calhoun has remained steadfast in his position. In a statement in January, he emphasized that Boeing takes full responsibility for its actions and vowed to address any potential failures. However, the recent string of crises has raised questions about the effectiveness of Calhoun’s leadership and the future of Boeing under his guidance.

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