Lawrence W. Kellner to Become Chairman of the Board
New Leadership to Bring Renewed Commitment to Transparency and Better Communication With Regulators and Customers in Safely Returning the 737 MAX to Service
Boeing [NYSE: BA] announced today that its Board of Directors has named current Chairman, David L. Calhoun, as Chief Executive Officer and President, effective January 13, 2020. Mr. Calhoun will remain a member of the Board. In addition, Board member Lawrence W. Kellner will become non-executive Chairman of the Board effective immediately.
The Company also announced that Dennis A. Muilenburg has resigned from his positions as Chief Executive Officer and Board director effective immediately. Boeing Chief Financial Officer Greg Smith will serve as interim CEO during the brief transition period, while Mr. Calhoun exits his non-Boeing commitments.
The Board of Directors decided that 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.
Under the Company’s new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers.
“On behalf of the entire Board of Directors, I am pleased that Dave has agreed to lead Boeing at this critical juncture,” Mr. Kellner said. He added, “Dave has deep industry experience and a proven track record of strong leadership, and he recognizes the challenges we must confront. The Board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company.”
Mr. Calhoun said, “I strongly believe 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.”
LE BOURGET, France June 17 (Reuters) – Boeing Co said on Monday it would supply parts for A320 jetliners made by its competitor Airbus to supply British Airways, the first such agreement by the U.S. planemaker to support an Airbus aircraft.
Under the agreement announced at the Paris Airshow, Boeing will manage and maintain a global exchange inventory of parts for Airbus’ A320 and A320neo single-aisle aircraft.
The deal reflects a push by the world’s largest planemaker into the higher-margin services business that includes aircraft parts and analytics, which Chief Executive Officer Dennis Muilenburg aims to grow to $50 billion in revenue in a decade.
“We were happy to put our hat in the ring and give a choice to British Airways,” Boeing Global Services Chief Executive Stan Deal told reporters.
British Airways also signed a deal for three landing gear exchanges for its 777 widebody fleet, Boeing said.
Separately on Monday, Boeing signed an agreement through its subsidiary Jeppesen to provide United Airlines with analytics services to help the carrier optimize crew planning operations through its entire fleet.
(Reporting by Eric M. Johnson and Tim Hepher; Editing by Alexander Smith and Mark Potter)
April 29 (Reuters) – Boeing Co said on Monday it did not “intentionally or otherwise” deactivate a safety alert for its angle-of-attack sensors on its 737 MAX aircraft, responding to reports the planemaker failed to tell Southwest Airlines Co and the U.S aviation regulator that the safety feature was deactivated before recent crashes.
“The disagree alert was tied or linked into the angle of attack indicator, which is an optional feature on the MAX. Unless an airline opted for the angle of attack indicator, the disagree alert was not operable,” Boeing said in a statement.
It said the disagree alert is not necessary for the safe operation of the airplane.
The company said following software modifications all new MAX aircraft will have an activated and operable disagree alert and an optional angle of attack indicator, while current MAX airplanes will have the ability to activate the disagree alert.
Boeing Chief Executive Officer Dennis Muilenburg was grilled at a press conference earlier on Monday, following two fatal crashes of the 737 MAX plane.
(Reporting by Uday Sampath in Bengaluru; Editing by Sriraj Kalluvila)
FILE PHOTO: U.S. President Donald Trump speaks at the debut of the Boeing South Carolina Boeing 787-10 Dreamliner in North Charleston, South Carolina, U.S., February 17, 2017. REUTERS/Kevin Lamarque
WASHINGTON
(Reuters) – U.S. President Donald Trump on Monday urged Boeing Co to
fix and “rebrand” its 737 MAX jetliner following two fatal crashes, as
regulators worldwide continue to work with the planemaker to review its
grounded best-selling aircraft.
The
Federal Aviation Administration has been meeting major airlines and
convened a joint review with aviation regulators from other countries,
while federal prosecutors, the U.S. Department of Transportation
inspector general’s office and a blue-ribbon panel are reviewing the
plane’s certification.
In
an early-morning post on Twitter, Trump, who owned the Trump Shuttle
airline from 1989 to 1992 and is an aviation enthusiast, weighed in with
his own advice.
“What
do I know about branding, maybe nothing (but I did become President!),
but if I were Boeing, I would FIX the Boeing 737 MAX, add some
additional great features, & REBRAND the plane with a new name. No
product has suffered like this one. But again, what the hell do I know?”
Trump tweeted.
The
plane’s grounding has also threatened the U.S. summer travel season,
with some airlines removing the 737 from their schedules through August.
Trump
issued the tweet as Boeing tries to restore trust in its
fastest-selling jet, the main source of profits and cash at the
Chicago-based planemaker which has won some 5,000 orders or around seven
years of production for the aircraft.
Chief
Executive Dennis Muilenburg has apologised on behalf of Boeing for
lives lost in two recent accidents and promised that it would address
the risk that flight software meant to prevent the plane stalling could
be activated by wrong data.
Boeing
has also held dozens of briefings and simulator sessions for airline
executives and pilots and held worldwide meetings with airline branding
and communications staff.
Pilots
are expected to play a major role in regaining public confidence in the
aircraft, but Trump’s tweet marks the first time the brand underpinning
Boeing profits in coming years has been thrown into question at a high
level.
Brand
Finance, a UK-based consultancy that tracks the value of global brands,
rejected the idea that Boeing should abandon the MAX brand but said its
corporate reputation was in the firing line.
“This
has without a doubt damaged Boeing’s reputation and we foresee a dent
to the (Boeing) brand’s value at over $12 billion (£9 billion),” Chief
Executive David Haigh said by email when asked about Trump’s comments.
“This
is a temporary blip in the long run for Boeing,” he said, adding Toyota
and others had recovered from similar high-profile crises without a
drastic rebranding exercise.
Brand
Finance had previously estimated the damage to the value of Boeing’s
reputation at $7.5 billion immediately after the March 10 crash of an
Ethiopian Airlines jetliner, the second fatal accident involving the 737
MAX in five months.
Boeing
has the world’s most valuable aerospace brand, having seen the value of
its overall corporate image rise by 61 percent to $32 billion in 2018,
according to the same branding firm.
(Reporting by Susan Heavey, Tim Hepher; Editing by Jeffrey Benkoe and Toby Chopra)
We know lives depend on the work we do, and our teams embrace that responsibility with a deep sense of commitment every day. Our purpose at Boeing is to bring family, friends and loved ones together with our commercial airplanes—safely. The tragic losses of Ethiopian Airlines Flight 302 and Lion Air Flight 610 affect us all, uniting people and nations in shared grief for all those in mourning. Our hearts are heavy, and we continue to extend our deepest sympathies to the loved ones of the passengers and crew on board.
Safety is at the core of who we are at Boeing, and ensuring safe and
reliable travel on our airplanes is an enduring value and our absolute
commitment to everyone. This overarching focus on safety spans and
binds together our entire global aerospace industry and communities.
We’re united with our airline customers, international regulators and
government authorities in our efforts to support the most recent
investigation, understand the facts of what happened and help prevent
future tragedies. Based on facts from the Lion Air Flight 610 accident
and emerging data as it becomes available from the Ethiopian Airlines
Flight 302 accident, we’re taking actions to fully ensure the safety of
the 737 MAX. We also understand and regret the challenges for our
customers and the flying public caused by the fleet’s grounding.
Work is progressing thoroughly and rapidly to learn more about the
Ethiopian Airlines accident and understand the information from the
airplane’s cockpit voice and flight data recorders. Our team is on-site
with investigators to support the investigation and provide technical
expertise. The Ethiopia Accident Investigation Bureau will determine
when and how it’s appropriate to release additional details.
Boeing has been in the business of aviation safety for more than 100
years, and we’ll continue providing the best products, training and
support to our global airline customers and pilots. This is an ongoing
and relentless commitment to make safe airplanes even safer. Soon we’ll
release a software update and related pilot training for the 737 MAX
that will address concerns discovered in the aftermath of the Lion Air
Flight 610 accident. We’ve been working in full cooperation with the
U.S. Federal Aviation Administration, the Department of Transportation
and the National Transportation Safety Board on all issues relating to
both the Lion Air and the Ethiopian Airlines accidents since the Lion
Air accident occurred in October last year.
Our entire team is devoted to the quality and safety of the aircraft
we design, produce and support. I’ve dedicated my entire career to
Boeing, working shoulder to shoulder with our amazing people and
customers for more than three decades, and I personally share their
deep sense of commitment. Recently, I spent time with our team members
at our 737 production facility in Renton, Wash., and once again saw
firsthand the pride our people feel in their work and the pain we’re
all experiencing in light of these tragedies. The importance of our work
demands the utmost integrity and excellence—that’s what I see in our
team, and we’ll never rest in pursuit of it.
Our mission is to connect people and nations, protect freedom,
explore our world and the vastness of space, and inspire the next
generation of aerospace dreamers and doers—and we’ll fulfill that
mission only by upholding and living our values. That’s what safety
means to us. Together, we’ll keep working to earn and keep the trust
people have placed in Boeing.
Dennis Muilenburg Chairman, President and CEO The Boeing Company
* Norwegian cancels some flights after grounding MAX 8 aircraft
* Airline says it maintains outstanding order for more planes
* Ethiopian crash was second involving MAX 8 since October
* Boeing has expressed confidence in safety of its plane
* Analyst sees limited short-term impact for Norwegian (Adds statement on Dublin-New York replacement aircraft)
OSLO, March 13 (Reuters) – Norwegian Air said on Wednesday it will seek compensation from plane maker Boeing for costs and lost revenue after grounding its fleet of 737 MAX 8 aircraft in the wake of the Ethiopian Airlines crash.
“We expect Boeing to take this bill,” Norwegian said in an emailed statement.
The
Oslo-based airline has 18 ‘MAX’ passenger jets in its 163-aircraft
fleet. European regulators on Tuesday grounded the aircraft following
Sunday’s crash of a similar plane in Ethiopia, which killed 157 people
and was the second crash involving that type of plane since October.
Boeing
Chief Executive Dennis Muilenburg said on Monday that he was confident
in the safety of the 737 MAX in an email to employees, which was seen by
Reuters.
Industry sources, however, said the planemaker faces big claims after the crash.
Norwegian
has bet heavily on the ‘MAX’ to become its aircraft of choice for
short- and medium-range flights in coming years as the low-cost carrier
seeks to boost its fuel efficiency and cut the cost of flying.
“What
happens next is in the hands of European aviation authorities. But we
hope and expect that our MAXes will be airborne soon,” Norwegian Air’s
founder and Chief Executive Bjoern Kjos said in a video recording
released on social media.
“Many
have asked questions about how this affects our financial situation.
It’s quite obvious that we will not take the cost related to the new
aircraft that we have to park temporarily. We will send this bill to
those who produce this aircraft,” he added.
Idle
planes will add to pressures on the airline, which is making losses
amid intense competition at a time when several smaller European
competitors have gone out of business.
The
carrier has raised 3 billion Norwegian crowns ($348 million) from
shareholders in recent months and said it would cut costs as it tries to
regain profitability this year.
“If
this situation gets solved within the next fortnight, this will not be
very serious for Norwegian,” said analyst Preben Rasch-Olsen at
brokerage Carnegie, adding that seasonally low demand in March likely
leaves spare capacity.
“The little extra costs they are incurring, they can probably get that covered by Boeing,” Rasch-Olsen said.
“But
if this situation continues into the Easter holidays, or May and June,
then it is a problem. They (will) need to get in new planes. And then
comes the costs.”
Europeans
tend to book their summer holidays in May, so the grounding may not yet
affect bookings for the peak season for the airline industry, the
analyst said.
Meanwhile,
Norwegian was maintaining its order for more aircraft of the same type
from Boeing, spokesman Lasse Sandaker-Nielsen said.
Norwegian
is expected to take delivery of dozens more of the ‘MAX’ in coming
years, raising the overall number to more than 70 by year-end 2021,
according to recent company announcements.
Shares in the airline have now dropped 6.8 percent this week as investors worried about the impact of the Ethiopian crash.
They fell by 4.8 percent in early trade on Wednesday but later recovered to trade up 2.7 percent by 1246 GMT.
Norwegian
cancelled some flights on Tuesday, and on Wednesday it cancelled at
least three dozen departures, its website showed, most of which were due
to fly from airports in Oslo, Stockholm and other Nordic cities.
The airline was booking passengers on to other flights and using other types of planes from its fleet to help fill the gaps.
In
a separate statement, Norwegian said it would deploy one of its larger
Boeing 787 Dreamliner aircraft to operate its daily route from Dublin to
Stewart airport north of New York City, replacing the grounded MAX.
($1 = 8.6093 Norwegian crowns)
(By Terje Solsvik and Gwladys Fouche. Additional reporting by Lefteris Karagiannopoulos; Editing by Susan Fenton and Louise Heavens)
WASHINGTON
(Reuters) – Purchases of U.S.-made Boeing Co aircraft by China could be
part of a sweeping deal currently being negotiated to end the
months-long trade war between Washington and Beijing, Boeing’s top
executive said on Thursday.
A
tit-for-tat trade war between the world’s two largest economic powers
has slowed the global economy. It has also opened up new risks for
Boeing, which calls itself America’s biggest exporter, in the world’s
fastest growing aviation market. Boeing sells roughly a third of its
top-selling U.S.-made 737 jetliners to customers in China.
Boeing
Chief Executive Dennis Muilenburg told an aviation summit in Washington
that he sensed U.S.-China trade talks were progressing “in a good way.”
“They
are dealing with some of the tough framework issues around intellectual
property and things like that,” Muilenburg said. “I do think they are
making progress. And at the same time, I think there’s an economic
opportunity here for airplanes to be part of the ultimate deal and help
further close the trade deficit gap.”
Governments
typically use jet deals to achieve broader diplomatic objectives. In
talks with Beijing, U.S. officials have demanded more details on China’s
pledge to make big purchases of American goods, as well as to push for
ways to hold China to any commitments on changes to industrial policies.
U.S.
President Donald Trump has demanded that China shrink its widening
trade surplus with the United States. On Wednesday, the U.S. reported
the goods trade deficit with China rose 11.6 percent to an all-time high
of $419.2 billion in 2018.
China
is poised to overtake the United States as the world’s largest aviation
market in the next decade and is gobbling up planes made by both Boeing
and European rival Airbus SE, while also investing in homegrown
aircraft businesses.
Boeing forecasts Chinese demand for 7,700 new airplanes over the next 20 years valued at $1.2 trillion.
(Reporting by Eric M. Johnson and David Shepardson in Washington; Editing by Tom Brown)
NOTE: Planesintheair.com forcast that 12 to 16 Boeing 747-8F freighters will be included in any new US-China trade deal!
CHICAGO, Feb. 26, 2019 /PRNewswire/ — The Boeing Company [NYSE: BA] board of directors has nominated Nikki Randhawa Haley to be elected as a director at the company’s annual meeting of shareholders on April 29.
Haley is the former U.S. ambassador to the United Nations, the first female governor of South Carolina, and a three-term legislator in the South Carolina House of Representatives.
“Ambassador Haley brings to Boeing an outstanding record of
achievement in government, industry partnership, and successfully
driving economic prosperity for communities in America and around the
world,” said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg.
“Boeing will benefit greatly from her broad perspectives and combined
diplomatic, government and business experience to help achieve our
aspiration to be the best in aerospace and a global industrial
champion.”
Ambassador Haley, 47, graduated from Clemson University with a bachelor’s degree in accounting. She was first elected to the South Carolina
House of Representatives in 2004, serving three terms before being
elected Governor of the state between 2011 and 2017. Haley was appointed
U.S. ambassador to the United Nations by President Trump in January 2017, serving until December 2018.
“It’s an honor to have the opportunity to contribute to Boeing’s
continued success as a cutting edge industry leader and a great American
company,” said Ambassador Haley. “Not only is Boeing the largest
aerospace company in the world and America’s biggest exporter, it also
understands the importance of teamwork and building community through
its network of suppliers in all 50 states and around the world.”
This Press Release Does Not Constitute a Solicitation of Proxies This press release is not a solicitation of proxies from holders of common stock of The Boeing Company (the “Company”). The Company will provide shareholders with a proxy statement and other relevant materials in connection with the 2019 Annual Meeting of Shareholders. Any solicitation of proxies by or on behalf of the Company in connection with the 2019 Annual Meeting of Shareholders will be conducted upon and following the dissemination of the proxy statement and other materials in accordance with applicable law. We urge shareholders to read the proxy statement and any other relevant documents to be filed with the SEC when available, as such documents will contain important information. Shareholders will be able to receive the proxy statement and other relevant documents free of charge at the SEC’s website at http://www.sec.gov or at http://www.boeing.com.
SEATTLE/PARIS (Reuters) – Boeing Co has started boosting 787 Dreamliner production to 14 jets a month from 12, Chief Executive Dennis Muilenburg said on Wednesday, putting the U.S. planemaker within reach of a key target designed to boost cash and lower costs.
It expects to complete the increase in production in the second quarter, Muilenburg told analysts on a conference call.
“We have started transitioning to 14 a month in our factories and supply chains as we prepare to begin delivering at this higher rate,” Muilenburg said.
The comments follow an earlier Reuters report that Boeing had starting running 787 lines at a rate ready to support the higher output of 14 jets a month.
While factories are already absorbing parts at the new speed, it can take several months for new jetliners to work their way through final testing and delivery. Some gaps in production are typically introduced to smooth such changeovers.
Boeing has previously said it aims to reach the new production rate in 2019.
Boeing shares jumped on Wednesday as the world’s largest planemaker raised its profit and cash flow expectations for 2019 amid a boom in air travel.
(Reporting by Eric M. Johnson, Tim Hepher; Editing by Laurence Frost and Elaine Hardcastle)
SEATTLE, Jan. 10, 2019 – The U.S. Air Force has accepted the first Boeing [NYSE: BA] KC-46A Pegasus tanker aircraft, setting the stage for the aircraft’s delivery to McConnell Air Force Base, in Wichita, Kan., in the coming weeks.
“The KC-46A is a proven, safe, multi-mission aircraft that will transform aerial refueling and mobility operations for decades to come. We look forward to working with the Air Force, and the Navy, during their initial operational test and evaluation of the KC-46, as we further demonstrate the operational capabilities of this next-generation aircraft across refueling, mobility and combat weapons systems missions,” said Leanne Caret, president and CEO of Boeing Defense, Space & Security. “I want to thank the men and women of the Air Force and across the Boeing tanker team who made this happen.”
During extensive flight testing, six KC-46 completed more than 3,800 flight hours and offloaded more than four million pounds of fuel to A-10, B-52, C-17, KC-10, KC-135, KC-46, F-15E, F-16 and F/A-18 aircraft. The Pegasus has been rigorously tested throughout all aspects of the refueling envelope and in all conditions, including day, night and covert.
With the signing of what’s known as the DD250 paperwork, the delivery activities can proceed. McConnell Air Force Base will receive the first four KC-46 aircraft, all of which are ready for delivery, with four subsequent aircraft destined for Oklahoma’s Altus Air Force Base, beginning as early as next month.
Boeing is on contract for 52 of an expected 179 tankers for the Air Force. Beyond the first aircraft that was accepted today, nine aircraft are undergoing customer acceptance testing with the remaining aircraft of the contracted amount in production.
“This is an exciting and historic day for the Air Force and Boeing, as we hand over the first of many KC-46 tankers,” said Boeing Chairman, President and CEO Dennis Muilenburg. “I’m proud of the dedication and commitment by our enterprise-wide team, and we’re honored to provide this valuable and capable aircraft to our customer. We look forward to continuing to build and support the KC-46 for the Air Force—and other customers across the globe—for decades to come.”
The KC-46, derived from Boeing’s commercial 767 airframe, is built in Boeing’s Everett, Wash., facility.
