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scott hamilton
March 12, 2024 © Leeham News: Industry insiders say customers are increasingly losing confidence in Boeing’s leadership.
It’s not just the leadership of Boeing Commercial Airplanes (BCA), CEO Stan Diehl is under increasing pressure to fix the problem. 
An ever-growing problem. Boeing’s corporate-level management is also losing trust with airlines and lenders.
Some airlines and lenders, who requested anonymity to speak freely, want Deal and other top leaders, along with David Calhoun, to step down. In the past, most of the blame has been directed at Deal and BCA leadership.
A growing number of clients want Boeing’s CEO Calhoun and other company executives fired.
Emirates President Tim Clark has publicly criticized Boeing’s leadership multiple times. However, he has always avoided giving his name in the public domain.
Ryanair CEO Michael O’Leary was less reticent. He has criticized the leadership of “Seattle” (a thinly veiled reference to Deal and its key figures) on numerous occasions. But O’Leary generally defended Calhoun.
Boeing’s recent series of glitches and delivery delays have prompted more customers to privately request sweeping changes.
And that new york times A six-week audit by the US Federal Aviation Administration (FAA) found that Boeing did not follow proper procedures 37% of the time.
What happened to Boeing’s pledge to improve safety after the 2018-19 MAX crashes that killed 346 people?
Boeing Commercial Airplanes and Boeing CEOs are to blame.
“Major” changes required
Boeing CEO David Calhoun said:
Some airlines have privately argued that major changes are needed at Boeing’s top leadership to fix the problem and reset company policy. “You can’t just tinker,” says one customer’s CEO. “We’re going to have to come up with something big.”
The CEO says maintaining the agreement is not the solution. Calhoun has to go too. But who will take their place?
Stephanie Pope, Boeing Vice President and Chief Operating Officer.
There is a view that Boeing is in a weak position when it comes to executive succession. Shortly before the Jan. 5 Alaska Airlines Flight 1282 disaster, which became the key event in the current Boeing crisis, Stephanie Pope was named Boeing’s vice president and chief operating officer. Ta. She previously served as CEO of Boeing Global Services (BGS).
No one was there at her appointment. LNA She understood why she was appointed to the new position. She was unknown to most people. Her long history at Boeing was in finance, not operations. She was appointed CEO of BGS when Stan Diehl was appointed CEO of BCA. Mr. Deal was described as her mentor.
But during the current series of crises, the Pope is nowhere to be seen. Mr. Calhoun was the “face” of Boeing. (Some suggested that Calhoun may not have wanted Pope involved in the current 737 MAX crisis.)
subsequent transactions
Issein Mounir has been named as Stan Deal’s successor.
Stan Deal, CEO of Boeing Commercial Airplanes.
Who will succeed Diehl? Ihsan Mounir is one of his names that has been suggested as: LNA. Mr. Munir is a career BCA employee who rose to the top position in sales before being appointed head of BCA supply chain last year. The latter is the position Deal held before becoming CEO of his BGS.
However, Munir is not a popular choice for some customers. Additionally, some former sales and marketing executives, now retired, criticized Mr. Munir as arrogant and unwilling to accept different points of view.
Elizabeth Land could replace Stan Diehl as CEO of Boeing Commercial Airplanes.
Elizabeth Rand is a long-time and well-regarded employee of Boeing. She was recently named BCA’s Senior Vice President of Quality and Chair of the Enterprise Quality Operations Council. Mr. Lund also served on the Executive Council. She now has the unenviable task of serving as a liaison with the Federal Aviation Administration and resolving issues between Boeing and the FAA.
Mr. Lund previously served as senior vice president and general manager of commercial aviation aircraft programs, overseeing the 737, 747, 767, 777/777X, and 787 programs. Prior to this, she served as program manager for several of her individual 7 series programs.
Is Shanahan back?
Pat Shanahan has also been named as a possible successor to Mr. Deal. Mr. Shanahan was a career employee of Boeing, including a stint in Boeing’s defense division. Shanahan served as senior vice president for aircraft programs before leaving Boeing to become deputy secretary of defense under President Donald Trump.
After leaving the Department of Defense, Shanahan retired and was eventually named to the board of directors of Spirit AeroSystems. Last year, Spirit’s board of directors fired CEO Tom Gentile after recurrent quality-control problems with the 737s that Spirit makes for Boeing Co. Shanahan was named interim CEO and was widely expected to serve a one-year term.
Former Boeing executive Pat Shanahan has been named as a possible successor to Stan Diehl and even David Calhoun. But he has a job repairing Spirit AeroSystems, a major supplier.
Shanahan certainly knows Boeing, BCA, and now Spirit. In theory, he would be the perfect person to be CEO of his BCA. Some think he is qualified to be CEO of Boeing, but he was just appointed CEO of Spirit to solve problems, so it’s too early to join Boeing. Dew.
And Mr. Shanahan, 61, will likely have a short tenure at Boeing. The retirement age for executives is 65, but the board of directors may grant an exemption. That’s what happened with Calhoun.
Calhoun’s successor
David Gitlin has been mentioned as a potential successor to David Calhoun.
Who will replace Calhoun?
Two members of Boeing’s board of directors, David Gitlin and Steven Mollenkopf, are mentioned repeatedly.
Mr. Gitlin, 52, currently serves as Chairman and CEO of Carrier Global. He also served as president of UTC’s Collins Aerospace Systems and UTC Aerospace Systems, a non-aviation company formerly owned by United Technologies Corporation (UTC) and now RTX. And he also worked for another aerospace company, Hamilton Sundstrand. Gitlin was appointed to Boeing’s board of directors in 2022. If he is appointed this year, he could serve as Boeing’s CEO for another 13 years.
Molenkopf, 56, comes from outside the aerospace industry. He is the former CEO of Qualcomm. He has been on the board since 2020 and could serve for nine years before reaching retirement age.
Stephen Mollenkopf has also been mentioned as a possible successor to David Calhoun.
Insider or outsider?
But some customers think they need an outsider. There are advantages and disadvantages to both insiders and outsiders.
But emotions suggest that we need fresh, clean eyes. People from aerospace companies such as Lockheed Martin and Northrop Grumman were considered, but their names were not mentioned.
But replacing Calhoun is “something the airlines are talking about,” one observer said. “People tell me that for key stakeholders, such as airlines and the financial community, there is no credibility in appointing someone in charge who is already involved in the problem.”
Boeing’s board of directors is famous for its support of its CEO. Mr. Calhoun, who was chairman of the board and lead director, knows this all too well. As Calhoun himself pointed out during the MAX crisis in 2018-2019, the board supported CEO Dennis Muilenburg right up until the moment it no longer supported him. Muilenburg was fired in December 2019. The board of directors named Mr. Calhoun, then chairman, to succeed Mr. Muilenburg as president and CEO.
“The board will invest until the CEO doesn’t,” Calhoun said. New York Times, March 5, 2020 interviewHe was one of the first people appointed after taking office in January of the previous year.
These are words that might trouble Calhoun.
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