Boeing CEO Dave Calhoun spoke out about the company's "crisis" as plane incidents continue to occur.
On Monday, Calhoun appeared on CNBC to speak about his decision to step down as the CEO of Boeing at the end of the year and was asked about the "crisis" facing the company and its production of Max airplanes.
"This company and our people have responded to the crisis like no group of employees I've ever seen or been around," Calhoun said on Squawk Box. "They certified the airplane, they started up a factory from zero, they created a shadow factory to get our planes back into the field, they created another shadow factory to basically rebuild all of our 787s, a hundred of them.
"They're up to the challenge; we will get ahead of this one," Calhoun said. "We are at the early stages of responding to, in my view, an over-exercised supply chain and an over-exercised Boeing factory, and we're gonna calm it down, we're gonna get ahead of all of the issues."
The context:
On Monday, Boeing announced changes to its company leadership, including Calhoun's decision to step down at the end of the year.
"It has been the greatest privilege of my life to serve Boeing," Calhoun said in a letter to employees. "The eyes of the world are on us, and I know that we will come through this moment a better company. We will remain squarely focused on completing the work we have done together to return our company to stability after the extraordinary challenges of the past five years, with safety and quality at the forefront of everything that we do."
Newsweek reached out to Boeing via email for further comment.
What we know:
Boeing has faced scrutiny over issues with many of their planes over the past several months.
In January, a Boeing 737 MAX 9 operated by Alaska Airlines flying to Ontario, California, was forced to make an emergency landing at the Portland International Airport after a portion of its fuselage ripped off.
In a statement following the incident, Alaska Airlines said that it was grounding all of its 737 MAX 9 planes.
"This remains a dynamic situation and we greatly appreciate the patience of our guests. We are notifying those whose flights are canceled and working to reaccommodate them," the statement said.
Views:
In his letter to employees, Calhoun said the incident involving Alaska Airlines was a "watershed moment for Boeing."
"I want to thank each and every one of you for how you have stepped up to this challenge and for the work now underway to make sure we demonstrate to all stakeholders that the Boeing of the future is everything they should expect it to be," the letter said.
"We have been working together for the last five years to address some of the most significant challenges our company and industry have ever faced in our 108-year history. I am confident that the way we have confronted these challenges, and how we are responding to this specific moment, is establishing standards for future generations of employees and will be woven into the fabric of how we operate for decades to come."
What's next:
It is currently unclear who will replace Calhoun as Boeing's CEO, but he noted in his interview that he hopes it is someone with "experience" in this field of work.
The board is expected to vote on a new CEO at its annual shareholder meeting later this year.
Update 3/25/24, 9:25 a.m. ET: This article was updated with additional information.
Update 3/25/24, 10:10 a.m. ET: This article was updated with additional information.
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
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