Boeing replaces executive who oversaw 737 Max, other planes

Kevin McAllister is being replaced by Stanley Deal, leader of Boeing’s services division

Boeing Commercial Airplanes CEO Kevin McAllister is shown here at a delivery ceremony for a Boeing 747-8 freighter to Qatar Airways on Sept. 25, 2017, at Boeing’s delivery center in Everett. (AP Photo/Elaine Thompson)

Boeing is replacing the head of its commercial-airplanes division as it struggles with a crisis created by two deadly crashes of its newest airliner.

Boeing said Tuesday that Kevin McAllister is out as chief executive of Boeing Commercial Airplanes. He is being replaced by Stanley Deal, leader of Boeing’s services division.

The shake-up in Boeing’s top ranks comes just days after the release of internal communications that showed a senior test pilot experienced serious problems while testing flight-control software for the 737 Max on a simulator.

That software, called MCAS, is at the centre of investigations into two crashes that killed 346 people and led to grounding of the Max. Boeing is taking much longer than executives expected to change the software and get the plane flying again.

Boeing announced two other promotions, including a replacement for Deal, who has led Boeing Global Services since the division was created in 2016.

McAllister was recruited from General Electric Co.’s jet-engine operation to run Boeing’s biggest division in 2016, just months before the 737 Max went into service. Boeing did not specify whether he quit or was fired.

READ MORE: Boeing, FAA both faulted in certification of the 737 Max

“The Boeing board fully supports these leadership moves,” Chairman David Calhoun said in a prepared statement.

Calhoun himself is new in his position. CEO Dennis Muilenburg also served as company chairman until the board stripped him of that job and elevated Calhoun two weeks ago.

In a statement, Muilenburg thanked McAllister for his service “during a challenging time, and for his commitment to support this transition.”

Boeing took a $5.6 billion pretax charge this summer to cover its estimate for compensating airlines that have cancelled thousands of flights because of grounded planes. It has disclosed nearly $3 billion in other additional costs related to the grounding.

The company faces dozens of lawsuits by families of passengers killed in the Max crashes in Indonesia and Ethiopia. It is also the subject of investigations by the Justice Department and Congress.

Chicago-based Boeing Co. is scheduled to report its latest financial results on Wednesday.

David Koenig, The Associated Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Salvation Army closing Nelson thrift store

The Salvation Army has operated in Nelson for 123 years.

Trucking company fined $175K for Lemon Creek fuel spill

Decision handed down last Friday in Nelson court

A literary afternoon with authors Lee Reid and Elizabeth Cunningham

Authors will read and talk about inter-generational connection and education

Habitat for Humanity seeks board members in Kootenays

Helping build affordable homes takes planning, volunteers and commitment

Fashion Fridays: Tammy’s big makeover

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Ryan nets hat trick in return as Senators beat Canucks 5-2

Ottawa winger received assistance for admitted alcohol problem

Wet’suwet’en hereditary chiefs meet with provincial, federal ministers

Neither party speaking on the groundwork laid for tomorrow’s talks

Speaker ‘will not tolerate illegal activity’ on B.C. legislature grounds, says chief of staff

Chief of staff to the B.C. speaker Alan Mullen says situation with demonstrators appears ‘fluid’

MPs to examine privacy implications of facial-recognition technology used by RCMP

The MPs will look at how the technology affects the privacy, security and safety of children

Dates back to 2009: Calgary police lay charges in fraud involving semi-trucks

Three people from Calgary are facing charges that include fraud over $5,000

Wet’suwet’en hereditary chiefs optimistic ahead of talks with feds, province

Discussions with provincial and federal governments expected to start later today

‘The project is proceeding’: Horgan resolute in support of northern B.C. pipeline

B.C. premier speaks as talks scheduled with Wet’suwet’en hereditary chiefs

Most Read