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At Boeing, C.E.O.’s Stumbles Deepen a Crisis

  • December 23, 2019
  • Business

“By the time April rolled around, Boeing was telling us next week, next month,” Gary Kelly, the chief executive of Southwest Airlines, said in an interview. “We were a week away, weeks away, three weeks away.”

That misplaced optimism made it impossible for airlines including Southwest, which is Boeing’s biggest 737 customer, to reliably plan their routes. “It was really creating havoc,” Mr. Kelly said.

In August, regulators from Europe, Canada and Brazil flew to Seattle and joined F.A.A. officials for a meeting with Boeing. They were expecting to review reams of documentation describing the software update for the Max. Instead, the Boeing representatives offered a brief PowerPoint presentation, in line with what they had done in the past. The regulators left the meeting early.

“We were looking for a lot more rigor in the presentation of the materials,” said Earl Lawrence, the head of the F.A.A.’s aircraft certification office. “They were not ready.”

With delays mounting, Mr. Muilenburg missed a chance to smooth things over with key customers. In September, he attended a gathering of a club of aviation executives called Conquistadores del Cielo at a ranch in Wyoming, according to two people familiar with the trip. As the group bonded while throwing knives and drinking beers, Mr. Muilenburg took long bike rides by himself. It was typical behavior for Mr. Muilenburg, an introverted engineer who prefers Diet Mountain Dew to alcohol, but it left other executives baffled.

October brought a string of bad news for Mr. Muilenburg. The board stripped him of his title as chairman, a stinging rebuke of his leadership. The decision, the board said, would allow him to focus on the single most important job at the company: bringing the Max back to service.

Article source: https://www.nytimes.com/2019/12/22/business/boeing-dennis-muilenburg-737-max.html?emc=rss&partner=rss

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