The American manufacturer Boeing seems to be going from bad to worse, accumulating production problems in 2023 and a flight incident in January which led to multiple investigations and the overhaul of its management, and now, the risk of criminal prosecution.
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Not to mention the testimony before a Senate inquiry committee of whistleblowers and security experts, the delays of the first crewed space flight of its Starliner spacecraft and a slowdown in deliveries which deepens its losses.
The announcement Tuesday evening by the Ministry of Justice that the giant did not respect a so-called deferred prosecution agreement (DPA) dating from 2021, linked to the crash of two 737 MAXs which left 346 dead, also now exposes it to criminal proceedings.
Faced with these threatening clouds, the successor of boss Dave Calhoun – he must leave by the end of 2024, carried away by these multiple crises – will have to be a business wizard to clean up the group while regaining the trust of its customers, the public and authorities.
“Given everything that needs to be overcome, the new boss will have to be something of a unicorn,” Bank of America analyst Ron Epstein recently commented.
For experts, the ideal boss must have experience in aerospace, management of large-scale industrial projects and a practical approach to security.
The group declined to comment on this quest but could speak at its general meeting on Friday.
Redesign
The departure of Dave Calhoun was announced on March 25 as part of an overhaul of Boeing’s governance, with the immediate departure of the head of the commercial aviation branch (BCA) and a new chairman of the board of directors.
A member of this board since 2009, Mr. Calhoun took control of the aircraft manufacturer in December 2019 after the resignation of Dennis Muilenburg, who was widely criticized after the accidents.
Former leader of the General Electric (GE) conglomerate and investment companies, Dave Calhoun could have stayed until 2028.
But everything changed when a new Alaska Airlines 737 MAX lost part of its cabin in flight.
With his departure not expected until the end of the year, Dave Calhoun retains his influence, including on the choice of his successor. Especially if his mandate as administrator is renewed on Friday.
Richard Aboulafia, a consultant at AeroDynamic, believes that the origin of Boeing’s woes goes back to decisions made by Mr. Calhoun and his predecessors, who prioritized profits and shareholder compensation over engineering.
The next boss can be “anyone really invested in this industry and not just a financier,” he noted, someone who “will be able to clean up the entire system.”
“General mobilization”
For his part, Ron Epstein calls for a “drastic cultural reorganization”, including in the hierarchical structure, and a transfer of the headquarters from the capital Washington to a production center.
To instill a spirit of “general mobilization,” he said.
Dave Calhoun praised Stephanie Pope, who has been climbing the ranks of the group for three decades and was named head of BCA on March 25.
But some experts say the next boss should be recruited elsewhere.
Among the names mentioned, Larry Culp, boss of GE Aerospace, and Pat Shanahan, boss of Spirit Aerosystems since September 2023 having spent 31 years at Boeing. Both said they were not interested.
The central figure in this research will be Steve Mollenkopf, former boss of Qualcomm. He has served on Boeing’s board of directors since 2020 and took over as chairman on March 25.
But the sky remains dark for the aircraft manufacturer.
By May 28, he must submit to the FAA – which has frozen production of the 737 MAX indefinitely – a “comprehensive action plan” to remedy the numerous non-compliance problems.
In July, the Ministry of Justice must decide whether or not to launch criminal proceedings.
At the same time, Boeing must negotiate with the International Union of Machinists and Aerospace Workers (IAM) the collective agreement which will replace the one expiring in September.
In addition to salary increases, the union – which represents 30,000 Boeing employees – particularly wants a guarantee that the next plane will be produced in Washington state (northwest).
