Published: Tue, January 14, 2020
Global News | By Blake Casey

Boeing CEO faces epic challenge in new job

Boeing CEO faces epic challenge in new job

U.S. Representative Peter DeFazio, who chairs the House Transportation and Infrastructure Committee, told reporters on Friday he advised Calhoun in a conversation he needs "to do something to relieve the pressure from Wall Street on your organisation, which ultimately drove all this".

"Those steps are just the start as Calhoun settles into a 36th-floor suite at Boeing's Chicago headquarters, entrusted with turning around a company that has been widely censured for its arrogance, failure to take responsibility after two crashes killed 346 people, and unrealistic estimates of when the Max would be cleared to fly again".

"Together we will strengthen our security culture, improve transparency and restore trust in our customers, regulators, suppliers and the flying public", wrote Calhoun. "With the strength of our team, I'm confident in the future of Boeing, including the 737 MAX", Calhoun is cited in the company's statement as saying. While Boeing says it will find other work for idled employees, those at major suppliers are not so lucky.

The compensation figures were disclosed in a regulatory filing late on Friday during a hard week for Boeing when it also released hundreds of internal messages - two major issues hanging over the company before new CEO David Calhoun starts on Monday. The payment is linked to returning the 737 Max aircraft to service, ending a global flight ban that's been in place since March in the wake of two deadly plane crashes.

Boeing still faces unresolved legal claims from family members of the deceased.

There is still no date for the 737 MAX to resume flying. Boeing's deteriorating relationship with the Federal Aviation Administration has prolonged the grounding.

In another email chain, from June 2017, the chief technical pilot forwarded to Boeing colleagues messages in which he persuaded anairline, which is not identified in the documents, not to require simulator training on the Max.

Retail inflation rose to 7.35% in December - the highest since July 2014
The central bank targets a consumer price index-based inflation of 4%, with a tolerance limit of 2% on either side. Retail inflation had spiked in December because of higher food inflation, which was at 14.22 per cent.

After Calhoun was selected, Bank of America Merrill Lynch said in a December note it had "mixed feelings" in light of Calhoun's background.

Calhoun today assumed the role of president and chief executive officer of The Boeing Company (NYSE: BA).

But others have noted that Calhoun has hands-on experience in industrial leadership, having overseen a General Electric division that oversaw aircraft engines, rail, among other units.

Now a new report from The New York Times reveals that Boeing's internal communications during the introduction of the 737 Max were sketchy at best.

Underlining the challenges ahead, ratings agency Moody's on Monday placed Boeing's debt rating on review for downgrade.

Spirit's stock price fell almost 2%, or about $1.30 per share, to $71.50 on the layoff news. Airlines around the world were forced to ground every single one of the planes after a pair of fatal crashes in late 2018 and early 2019.

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