Daily Management Review

Boeing 737 MAX Crisis: Company Removes Senior Executive


Boeing 737 MAX Crisis: Company Removes Senior Executive
In what can be described as the most notable change in the management levels of the company, one of its top ranked executives was removed by the United States based aircraft maker Boeing in connection to the global grounding of its onetime cash cow the 737 Max planes following two fatal accidents involving the same model. The two crashes killed 346 people in total.
The latest accident occurred in March of an Ethiopian Airline plane in March of this year and cine then all 737 Max planes all around the world have been grounded over concerns of safety. 
The ousted executive is Kevin McAllister, who headed the commercial airplanes division of Boeing. He was the center point to the response of Boeing to the criticisms after the 737 Max crashes and the unsuccessful efforts of the company to convince air regulators all across the world to allow the return of the planes to the air. A recent report published by The New York Times claimed that Boeing had been scrutinizing the role played by the executive and the poor handling of the company’s relations with airline companies as well as his style of management of commercial aircraft division of Boeing.
According to analysts, this measure by Boeing is part of its efforts to hold at least some one in a senior leadership role responsible for the faulty handling of the 737 Max crisis. According to reports, the governing board of the company did contemplate removal of the company’s chief executive Dennis A. Muilenburg, but refrained from doing so. However the board did punish him by removing him from the position of chairman of the company about a week ago. It was reported that the decision to ouster McAllister was taken by the board of the company during its meeting in San Antonio, US.
The global grounding of the 737 Max planes has hit the company with at least $8 billion while also upending the global aviation industry.
Boeing has also been pulled up by lawmakers in Washington.
There was a huge uproar in the aviation industry after reports about messages from a pilot of the company became public in which he claimed that he had raised concerns about the automatic piloting system fitted in the 737 Max crafts way back in 2016. That was way before the model was approved to be safe to fly the US Federal Aviation Administration. Investigators probing the two recent crashes involving the 737 Max planes have pointed to a malfunctioning of an automated system known as MCAS to have possibly been behind the crashes. Analysts expect those messages from 2016 to hold great importance during a Congressional testimony by  Muilenburg next week.
McAllister will be immediately replaced by Stanley A. Deal, who was in-charge of the global services for Boeing. Having served more than three decades at Boeing, Deal has also held a number of important senior level responsibilities in the company.

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