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Boeing 737 Max CEO Dennis Muilenburg is Out.

Boeing 737 Max CEO Dennis Muilenburg is Out.

Boeing 737 Max CEO Dennis Muilenburg is Out- via

Boeing CEO Dennis Muilenburg, who has been criticized for his handling of the 737 Max crisis, has resigned effective immediately, the company announced Monday.

Boeing has announced  last Monday that CEO Dennis Muilenburg has resigned effective immediately after  being criticized for his handling of the 737 Max Crisis.

The Max was grounded worldwide in March after the second of two crashes, killing a combined total of 346 people. Boeing had hoped to get the plane flying this year, but announced last week that it would temporarily halt Max production next month.

The announcement also came one day after Boeing's Starliner capsule landed in New Mexico following a difficult flight that saw mission managers scrambling to save the unmanned spacecraft.

Board Chairman David Calhoun was named CEO and president effective Jan. 13. Chief Financial Officer Greg Smith will serve as interim CEO during the transition, the statement said.

Board member Lawrence Kellner will become non-executive Chairman of the Board effective immediately. 

"A change in leadership was necessary to restore confidence in the company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders," Boeing said in a statement.

Boeing will operate "with a renewed commitment to full transparency, including effective and proactive communication" with the FAA, other global regulators and its customers, the statement said.

Boeing appeared confident last month that the FAA would certify its software fixes for the troubled plane this year and that it could resume deliveries of new Max planes to airlines in December, with the plane returning to commercial service in January.

Calhoun even gave Muilenburg a vote of confidence in November, saying the board believed Muilenburg "has done everything right" during the Max crisis.

The FAA, however, has repeatedly said there is no timetable for bringing the planes back into service. Last week, United took the Max out of its schedule until early June, longer than any airline since the timetable for the plane's return remains murky. American and Southwest currently have it scheduled to return in early April.

The planes were fast becoming the most popular in the world when Indonesia's Lion Air Flight 610 plunged into the Java Sea on October 29, 2018, killing all 189 aboard. Less than five months later, on March 10, Ethiopian Airlines Flight 302 crashed minutes after takeoff from Addis Ababa, killing all 157 passengers and crew.

Both flights crashed after experiencing drastic speed fluctuations during ascent, and their pilots tried to return to the ground after takeoff. Regulators and industry experts targeted the the plane's Maneuvering Characteristics Augmentation System, or MCAS.

Boeing has been working feverishly to fix the problem and win certification to again fly the planes. The struggles to do so put pressure on Muilenburg, 55, who grew up on an Iowa farm and joined Boeing as an intern in 1985.
Muilenburg was a career Boeing employee, named president of the aerospace and defense giant in 2013 and taking over as CEO in July 2015. 
Last month he agreed to give up any bonuses this year. His total compensation in 2018 was $23.4 million, according to Boeing's proxy statement. His salary was $1.7 million; the rest was bonus and stock awards.

Calhoun said Monday he "strongly believes" in the future of Boeing and the 737 MAX.

"I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation," he said.

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