Growing frustration from top U.S airline executives over prolonged delays and issues securing aircraft deliveries from Boeing came to a head this month, culminating in a significant reshuffling of the aviation giant's leadership. Sources indicate CEOs from carriers like Southwest, United, Alaska and American had been agitating for a direct meeting with Boeing's board to voice concerns about a lack of meaningful progress in resolving issues.
However, before that could take place, Boeing's board pre-empted the move by initiating major changes at the top. Longtime CEO Dave Calhoun announced plans to step down by year's end, while board chairman Larry Kellner and Boeing's head of commercial airplanes also exited their roles. The shakeup was described by some in the industry as Boeing management essentially being “replaced” due to losing the confidence and support of its biggest customer base.
Airline leaders grew increasingly vocal in their criticism of Boeing in recent weeks. United CEO Scott Kirby took the unusual step of publicly cancelling plans to buy Boeing's new MAX 10 model, instead pursuing a major deal with rival Airbus. CEOs also hinted at deeper issues within Boeing's production facilities and planning processes that would require sustained efforts to adequately address.
Sources indicate the last straw was last month's discovery of loose bolts on a MAX aircraft shortly after resuming deliveries, on top of other persistent MAX-related delays stretching back years. The coordinated pressure from major U.S carriers demonstrated a profound shift in what has traditionally been private discussions between suppliers and customers in the industry. With half the global fleet owned by leasing companies, Boeing will need to work diligently to rebuild confidence across the entire aviation sector.
The changes leave Boeing searching for new leadership at a pivotal time as it looks to recover from the crisis of confidence caused by its own problems. Airliners and analysts argue Boeing must now recruit executives with stronger manufacturing experience to help remedy issues plaguing its production facilities that have led to the current instability in meeting customer demands and schedules. Only with solid strategy and action to resolve deep-rooted challenges will Boeing be able to reassure airline partners and passengers of its commitment and ability to safety and reliability once again.
