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Boeing name new CEO amid crisis

What you need to know:

The leading plane maker named David Calhoun new CEO, saying the it needed to restore confidence and repair relationships with regulators.

New York. Boeing has pushed out its embattled chief executive, Mr Dennis Muilenburg as it attempts to pivot from a protracted crisis surrounding the grounding of its top-selling 737 MAX after two deadly crashes.

More than nine months after the MAX was grounded and a week after halting production of the aircraft, Boeing named board Chairman Mr David Calhoun as chief executive and president, saying the company needed to “restore confidence” and “repair relationships with regulators, customers and all other stakeholders.”

A week ago, Boeing took the monumental step of temporarily shutting down MAX production because of the crisis, which has pushed the aircraft’s return to the skies into 2020 and raised the anxiety level among Boeing’s workforce and suppliers.

Though coming during the sleepy days ahead of the Christmas holiday, the move was not entirely unexpected after Boeing stripped Mr Muilenburg of his chairman title in October, installing board member Calhoun in that post.

Still, while Boeing watchers had seen Mr Muilenburg’s days as numbered, some expected him to stay on until the MAX was returned to service. But the timing of that landmark event remains unclear and will depend on the Federal Aviation Administration, which has made it clear it is not in a hurry.

An FAA spokesman said the agency does not comment on personnel decisions.

“The FAA continues to follow a thorough process for returning the Boeing 737 MAX to passenger service,” the FAA spokesman said. “Our first priority is safety, and we have set no timeframe for when the work will be completed.”

Mr Muilenburg repeatedly offered predictions on the 737 MAX return to service that proved overly-optimistic. His prospects further dimmed last week when its Starliner unmanned spacecraft came up short in a NASA mission to reach the International Space Station.

Muilenburg’s departure was “long overdue,” said former National Transportation Safety Board chief Jim Hall. (AFP)