Boeing fires CEO Dennis Muilenburg in 737 MAX debacle

The Boeing Co. said Monday that Dennis Muilenburg has resigned as chief executive officer.

The action comes in the wake of the 737 MAX disasters and the ground of the jet, which has crippled Boeing's Commercial Airplanes division.

Boeing said that board chairman David L. Calhoun will take over as president and CEO, and Lawrence W. Kellner will become chairman. Chief Financial Officer Greg Smith will serve as interim CEO in the transition, Boeing said.

Boeing has been struggling to get regulators' approval to get the 737 MAX back in the air since it was grounded in March in the wake of two fatal crashes that killed 346 people.

A key software system has been blamed in the crashes, and Boeing has worked on a fix, but the Federal Aviation Administration has yet to approve it.

FAA chief Stephen Dickson recently chastised Muilenburg over his statements about returning the plane to service this year.

"I think that was definitely a factor in Muilenberg being forced out -- that and his appearances before Congress and the Senate, which were generally viewed as somewhat disastrous," aerospace analyst Richard Aboulafia told KUOW. "There was a feeling that the company needs stability."

Boeing said last week that it would halt production of the 737 MAX in January, a decision that will have ripple effects throughout the supply chain.

Aboulafia said Calhoun might provide a steadier hand for now, but whether he's the right person to lead Boeing is unclear.

"A lot of his background is private equity, which is certainly a useful toolkit in some occasions," Aboulafia said. "But to running an engineering company like Boeing that needs its engineering capabilities bolstered at a time like this, that might not be the right toolkit."

Here's Boeing's statement:

Boeing [NYSE: BA] announced today that its Board of Directors has named current Chairman, David L. Calhoun, as Chief Executive Officer and President, effective January 13, 2020.

Mr. Calhoun will remain a member of the Board. In addition, Board member Lawrence W. Kellner will become non-executive Chairman of the Board effective immediately.

The Company also announced that Dennis A. Muilenburg has resigned from his positions as Chief Executive Officer and Board director effective immediately.

Boeing Chief Financial Officer Greg Smith will serve as interim CEO during the brief transition period, while Mr. Calhoun exits his non-Boeing commitments.

The Board of Directors decided that a change in leadership was necessary to restore confidence in the Company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders.

Under the Company's new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers.

"On behalf of the entire Board of Directors, I am pleased that Dave has agreed to lead Boeing at this critical juncture," Mr. Kellner said. He added, "Dave has deep industry experience and a proven track record of strong leadership, and he recognizes the challenges we must confront. The Board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company."

Mr. Calhoun said, "I strongly believe in the future of Boeing and the 737 MAX. I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation."

This is a breaking news story and will be updated.