Insight Monday 13 January 2020: David Calhoun Era Begins at Boeing

News

The news today is that David Calhoun begins his tenure as Boeing’s CEO after being a long-time member of the Board of Directors, replacing Dennis Muilenburg.  The challenges he will face are daunting, as the company remains in the midst of the MAX crisis and a clear change in direction is needed at Boeing.  We wish him the best of success in turning around a troubled Boeing.

Analysis

It is likely that Calhoun will announce the financial impacts of the crisis, with a write-down of about $6 billion expected when Boeing posts its latest quarterly results.  That quarterly meeting will provide an opportunity to clearly set out his agenda, mend fences with regulators, airline customers, their pilots and flight attendants, Boeing employees, and the company’s supply chain as well as reassure airline customers.  That, itself, is quite a task, but Calhoun appears to be a much better communicator than Muilenburg.