Boeing’s jetliner chief steps down as 737 Max crisis deepens

Bloomberg | Updated on: Oct 23, 2019
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Boeing Co. said Kevin McAllister is stepping down as head of its jetliner division amid a crisis engulfing the 737 Max and production snarls with other planes.

Stan Deal, the head of Boeings global services business, will replace McAllister, the company said in a statement on Tuesday. McAllister is the highest-ranking executive to depart in the wake of two deadly crashes of the Max and a worldwide grounding that began in March.

McAllisters departure marks the second major management shake-up this month, after Chief Executive Officer Dennis Muilenburg was stripped of the chairman’s job October 11. Deal will be replaced at Boeing’s services division by Ted Colbert.

Vishwa Uddanwadiker was named as Boeing’s interim chief information officer, replacing Colbert.

As the first outsider to run Boeings main business, McAllister faced a steep learning curve when he jumped from General Electric in late 2016. The challenge deepened immeasurably when two newly built Max planes crashed within a five-month span between October 2018 and March of this year.

Regulators grounded the jet following the second fatal accident, turning Boeing’s largest source of revenue into a cash drain overnight. Multiple investigations into the design and certification of the jet are underway, and Boeing’s reputation for safety has been battered.

Boeing shares climbed 2.3% to $338.79 at 3:25 pm in New York.

Published on October 23, 2019

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