Oscar Munoz, former CEO of United Airlines, has voiced his concerns over the current crisis at The Boeing Company BA, criticizing the lack of trust in the company’s leadership.
What Happened: Munoz expressed his views during CNBC’s “Last Call” on Tuesday following a Congressional hearing where Boeing’s CEO, David Calhoun, was grilled by lawmakers following reports of shortcomings and lapses in checks during production.
“The takeaway was, very simply, leadership is all about trust and the lack of trust in Boeing and what it’s done was palpable and clear in the way questions were asked, the way it was received by the audience,” Munoz said, adding that this will impact Boeing’s market share.
“If you’re an airline and you need aircraft, this isn’t a place you’re waiting for aircraft…there is a big hole that we will have to climb out of.”
Why It Matters: Munoz’s comments highlight the challenges Boeing faces amid its leadership crisis. The company’s stock has been negatively impacted following Calhoun’s testimony to Congress, where he shared more on the company’s shortcomings and future plans. Subcommittee chairman Sen. Richard Blumenthal called this a “moment of reckoning” for Boeing.
Boeing is currently searching for a new CEO, as Calhoun announced his intention to resign by the end of the year. The search has reportedly been fraught with complications, with several high-profile candidates declining the opportunity.
Price Action: Boeing’s stock closed at $174.99 on Tuesday, down 1.91% from the previous close. The company’s stock has a 52-week high of $267.54 and a 52-week low of $159.7, according to Benzinga Pro.
Image by Muhammad Alimaki via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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