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Can the new Boeing CEO return the company to profitability


Lillian McKenna

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Most media houses have reported that Dave Calhoun, the new Boeing CEO (NYSE:BA) is the right man for the job of reforming the plane manufacturer and military contractor. However, you may be surprised to realise that Calhoun is not a newcomer to the company given that he has been on Boeing’s board for the last ten years. The question on most analysts’ minds is whether he can steer the company to profitability and restore public confidence in Boeing’s planes.

Dave Calhoun was Boeing’s chairman before assuming his new role as CEO on Monday, and he is not an engineer like the outgoing CEO, Dennis Muilenberg. Therefore, we should not expect the new CEO to institute new engineering measures that will transform Boeing’s manufacturing processes. However, I believe that the company’s board saw it fit to appoint Calhoun to this crucial role so that he can transform the firm’s lax corporate culture.

Recent revelations indicated that a Boeing employee had criticised the 737 Max’s design and manufacturing processes saying that monkeys designed the plane. Mr Calhoun will be tasked with transforming Boeing into a company that upholds the highest engineering standards by focusing on designing and making the best planes. Most analysts are looking forward to the company spending billions on improving its manufacturing and quality assurance processes given the recent 737 Max crashes that cost hundreds of lives.

Investors are also hoping to see Mr Calhoun fast-track the process of re-certifying the 737 Max plane so that it can be allowed to fly again. Getting the 737 Max plane flying again will be a big boost to the plane-maker as the firm will finally stop losing money due to the ongoing grounding of the plane.

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