Boeing Part Supplier Announces 2,800 Staff Cuts, Citing 737 Max Grounding

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Boeing Co's new chief executive, David Calhoun, assumed the job on Monday as the US planemaker battles to recover from two fatal crashes of 737 Max planes that killed 346 people in five months and led to the model's worldwide grounding in March.

Boeing's chief executive, Dennis Muilenburg, ousted amid the worst crisis in the company's history, will depart with stock and pension awards worth more than $60m, the company announced on Friday. That forced Boeing to suspend production of the 737 MAX this month. Calhoun's to-do-list also includes repairing Boeing's strained relationship with its chief regulator, and overseeing compensation to airline customers who cancelled thousands of flights because their Boeing jets were grounded. It is also considering raising more debt. An interim CEO took over for three weeks while Calhoun, who was most recently a private-equity executive, cut ties to other companies.

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.

In a memo sent to Boeing employees Monday, Calhoun acknowledged employees for their hard work during the past 18 months, which he admitted have been challenging.

In a March 2017 message, the chief technical pilot wrote several of his colleagues to "stress the importance of holding firm that there will not be any type of simulator training required".

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The company added that it had "not found any instances of misrepresentations to the FAA in connection with its simulator qualification activities, and we remain confident in the regulatory process for qualifying these simulators".

Boeing said the communications "do not reflect the company we are and need to be, and they are completely unacceptable".

Forkner wasn't the only Boeing employee that didn't want Lion Air to participate in 737 Max simulator training. Calhoun said in his Monday email the company "will foster an inclusive environment that embraces oversight and accountability and puts safety, quality and integrity above all else".

Richard Aboulafia, vice president of analysis at the Teal Group, said in an essay for Leeham News that Calhoun must decide "either to be a fantastic nine-month CEO, or he will stay on, becoming a potentially disastrous multi-year CEO". He argues "Boeing needs a CEO with an understanding of aviation markets, program management, and most of all, engineering".

Another exchange between Boeing employees, from August 2015, closes out with this: "I know but this is what these regulators get when they try and get in the way. they impede progressw"(sic).

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