The severe crisis unleashed at Boeing, by the accidents of the model 737 MAX has claimed the head of its ceo, Dennis Muilenburg. Criticized by the management of some events by itself is serious, have lost the life 346 people, Muilenburg had previously waived the executive chairman of the company, but maintained the position of chief executive, while the actions of the group they would fall.
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“The board of directors has decided that we need a change of leadership to restore confidence in the company while still moving forward on the task of repairing relationships with regulators, customers and all those affected,” said the giant american Monday in a press release. The president of the company, Dave Calhoun, replacing Muilenburg on the 13th of January, and the chief financial officer, Greg Smith, will assume the helm during these weeks of transition.
This is the most serious crisis that has happened in the centuries-old Boeing, one of the great symbols of the industrial strength of the united States, with damages are economic and reputational, if it is in the case of a listed company in the aviation sector there is some difference between each other. In the two accidents related to the model, the happened in October 2018 in Indonesia and the march of 2019 in Ethiopia, an erroneous reading from the sensor that indicates the inclination of the plane activated the stabilization system. From the tragedy of Ethiopia appliances 737 MAX aircraft are forbidden to fly.
Muilenburg souvenirs during this time by trying to restart their activity, and calculated so unrealistic that he would make it before the end of this year, but the regulator of the aviation us (FAA, its acronym in English) has made it clear that the new authorization will be delayed and has expressed unease at the pressure of the executive of Boeing. Before the planes return to operate, the company must ensure that the automated system that is in the spotlight, called MCAS, has been fixed.
Both the first response of Boeing, as the FAA have been called into question, since in the tests that were carried out after the first accident showed that the technical problem could occur again.“We made mistakes and did some things wrong”, he admitted Muilenburg last October, during his appearance before the Transportation Committee of the Senate of the united States, while at his back a whole row of family members of the victims carried large photographs of the deceased.
On the Stock exchange, the securities reacted to the news of their termination with a rise of 3%, but it is a lot of the ground that you lack to recover. In the above-mentioned 10 months since the crisis began, the most severe that has been experienced by the group up until now, its value has come down 25% and it is estimated that the costs have reached 8,000 million dollars. The aeronautical group reported last week that from the month of January it would suspend production of the model fallen in disgrace, once the device star for flights of short and medium range.
“Under the new leadership, Boeing will operate with a renewed commitment to full transparency, including effective communication and proactive engagement with the FAA, other global regulators and their customers,” the group said in a statement. For his part, Calhoun, the future ceo, said he believes “strongly” in the future of the company as of the own model 737 MAX aircraft.
A handful of data to give an idea of the turmoil they face and that affect, in addition to thousands of providers in the sector. Since the first device debuted in may of 2017, the company had managed to put about 350 in the air and it accumulated a portfolio of firm orders of 4.636 units, according to the data corresponding to march of 2019, after the second accident. The break has been punished very quickly to the income of the company.
In the third quarter, recent results published, the benefits of sank a 53% and in the first nine months of the year, the collapse reaches the 95%. The court of the production of the 737 MAX can help you conserve cash, but the bleeding cannot be stopped completely, because the company must continue to allocate resources to maintain the chain of supply and production capacity. According to an analysis by the consulting firm JP Morgan, Boeing needs to continue to consume about 1,000 million monthly for the costs of the crisis.
“This is something that we have asked and by what we have been fighting for quite some time,” he told the AP the family of a victim, Ababu Amha, who lost his wife, a flight attendant, in the accident of Ethiopean Airlines, the second incident, which took place last march.
