Boeing removes CEO from chairman role, names replacement
Boeing CEO Dennis Muilenburg has been removed from his role as chairman of the company after Boeing's board of directors voted to separate the roles of CEO and chairman, the latest step in the ongoing saga of the 737 MAX that's seen the plane grounded after two fatal crashes that claimed the lives of 346 passengers and crew.
Muilenburg will remain on Boeing's board of directors, while lead director David Calhoun will assume the role of nonexecutive chairman. Calhoun emphasized that this decision does not reflect a loss of confidence in Muilenburg's ability to run the company, saying in a statement that, "The board has full confidence in Dennis as CEO and believes this division of labor will enable maximum focus on running the business with the board playing an active oversight role." In the same release, Muilenburg supported the board's decision and said that the "entire team is laser-focused on returning the 737 MAX safely to service."
Both MAX crashes were tied to the Maneuvering Characteristics Augmentation System (MCAS), a piece of software designed to automatically stabilize the pitch of the airplane in the event of a stall. Boeing is now the subject of multiple federal inquiries and even civil suits from the family of victims into the process by which MCAS was designed and tested.
Last month, Boeing announced the creation of a new product safety division within the company, and has announced plans to add a board member with safety experience in the near future.
Boeing has lost billions of dollars in canceled or delayed orders in the six months that the 737 MAX has been grounded, adding extra pressure as the company tries to convince regulators and passengers worldwide that its software updates are sufficient to get the plane safely flying again. The three biggest North American operators of the MAX, United Airlines, American Airlines and Southwest Airlines, have all extended their flight cancellations into 2020.
Sign up for the free daily TPG newsletter for more travel tips!
TPG featured card
at Capital One's secure site
Terms & restrictions apply. See rates & fees.
| 5X miles | Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel |
| 2X miles | Earn unlimited 2X miles on every purchase, every day |
Pros
- Stellar welcome offer of 75,000 miles after spending $4,000 on purchases in the first three months from account opening. Plus, a $250 Capital One Travel credit to use in your first cardholder year upon account opening.
- You'll earn 2 miles per dollar on every purchase, which means you won't have to worry about memorizing bonus categories
- Rewards are versatile and can be redeemed for a statement credit or transferred to Capital One’s transfer partners
Cons
- Highest bonus-earning categories only on travel booked via Capital One Travel
- LIMITED-TIME OFFER: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app