Muilenburg dismissed to restore confidence

Boeing Co has fired Chief Executive Dennis Muilenburg after repeatedly failing to contain the fallout from a pair of fatal crashes that halted output of its best-selling jetliner and tarnished its reputation with airlines and regulators.

Boeing – beset by one setback after another following the two air disasters – dropped Muilenburg as it became increasingly clear that he was making little headway resolving a crisis that has cost it $9 billion, hurt suppliers and airlines and now threatens to cut the pace of U.S. economic growth.

Chairman David Calhoun, a former General Electric executive who has been on the Boeing board since 2009, will take over as CEO and president, effective from Jan. 13, Boeing said. Until then, Chief Financial Officer Greg Smith will run the world’s largest planemaker.

“The board of directors decided that a change in leadership was necessary to restore confidence,” a Boeing statement said. A Boeing official said the board had deliberated over the weekend and decided to oust Muilenburg in a phone call on Sunday.

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