Boeing replaces executive who oversaw 737 Max, other planes

Kevin McAllister is being replaced Stanley Deal, who has been leading the company’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 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)

Associated Press and Herald staff

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 Renton-based Boeing Commercial Airplanes. He is being replaced by Stanley Deal, leader of Boeing’s services division.

The shakeup 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. The Seattle Times later reported that the problems being discussed involved behavior unique to the simulator’s software and not related to a flight-control software malfunction of the actual airplane.

That software, called MCAS, is at the center 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.

“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 canceled 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. Boeing stock on Tuesday closed at $337 per share, up 1.8%.

Talk to us

More in Herald Business Journal

Barre3 owner Gina Drake leads an exercise class in the Red Barn at 5th Ave S and Maple Street on Wednesday, Jan. 13, 2020 in Edmonds, Washington.  (Andy Bronson / The Herald)
Barre3 teaches a fitness trifecta for balance during COVID-19

The full-body workouts combine strength conditioning, cardio and mindfulness to help you feel balanced.

An access road leads into plot of land located in north Darrington that could potentially be used to build a 30-acre Wood Innovation Center, which will house CLT manufacturing and modular building companies on Tuesday, Jan. 12, 2021 in Darrington, Wa. (Olivia Vanni / The Herald)
$6 million grant is green light for Darrington timber center

The Darrington Wood Innovation Center is set to become a reality — bringing roughly 150 jobs with it.

Boeing 777 makes emergency landing in Moscow

The plane landed safely and no one was injured.

FILE- In this Oct. 19, 2015, file photo, an airplane flies over a sign at Boeing's newly expanded 737 delivery center at Boeing Field in Seattle. Federal regulators have imposed $5.4 million in civil penalties against Boeing on Thursday, Feb. 25, 2021, for violating terms of a $12 million settlement in 2015, and the aircraft maker has agreed to pay another $1.21 million to settle two current enforcement cases. (AP Photo/Ted S. Warren, File)
Boeing will pay $6.6 million to settle FAA allegations

The company failed to put adequate priority on complying with regulations.

FILE - In this Wednesday, Dec. 11, 2019, file photo, a United Airlines Boeing 737 Max airplane takes off in the rain, at Renton Municipal Airport in Renton, Wash. Federal auditors are issuing fresh criticism of the government agency that approved the Boeing 737 Max. The Transportation Department's inspector general said Wednesday, Feb. 24, 2021, that the Federal Aviation Administration must improve its process for certifying new planes.  (AP Photo/Ted S. Warren, File)
Federal watchdog blasts FAA over certification of Boeing jet

It will take five years to finish making the Transportation Department’s 14 recommended changes.

Hamburger cheese with beef, salad, tomato and ham isolated on white background.
You voted: The best hamburger in Snohomish County

Even during a pandemic, people still have their favorites.

Boeing’s decorated 787 Dreamliner on display at a celebration for the Boeing Employees Community Fund last year at the Boeing Future of Flight Aviation Center in Mukilteo. (Janice Podsada / Herald file)
Boeing’s deepening 787 inspections risk longer delays

The company will use freed-up space in Everett to inspect and repair the plane’s tiny imperfections.

In this image taken from video, the engine of United Airlines Flight 328 is on fire after after experiencing "a right-engine failure" shortly after takeoff from Denver International Airport, Saturday, Feb. 20, 2021, in Denver, Colo. The Boeing 777 landed safely and none of the passengers or crew onboard were hurt. (Chad Schnell via AP)
Metal fatigue seen as trigger for Boeing 777 engine failure

A preliminary investigation suggested a crack that grew gradually over time prompted the failure.

Boeing 757 flying to Seattle makes emergency landing

The 16-year-old jetliner was powered by Pratt & Whitney engines.

This Saturday, Feb. 20, 2021 photo provided by Hayden Smith shows United Airlines Flight 328 approaching Denver International Airport, after experiencing "a right-engine failure" shortly after takeoff from Denver. Federal regulators are investigating what caused a catastrophic engine failure on the plane that rained debris on Denver suburbs as the aircraft made an emergency landing. Authorities said nobody aboard or on the ground was hurt despite large pieces of the engine casing that narrowly missed homes below. (Hayden Smith via AP)
Boeing: 777s with engine that blew apart should be grounded

Video showed the engine fully engulfed in flames as the plane flew through the air.

A portion of the site of the proposed Lake Stevens Costco at the intersection of Highway 9 (right) and South Lake Stevens Road (below, out of view). (Chuck Taylor / Herald file)
Legal battle stalls Costco’s planned store in Lake Stevens

“We intend to keep them in court until they get tired of us and go away,” an opponent of the project said.

FILE - In this Jan. 25, 2020, file photo a Boeing 777X airplane takes off on its first flight with the Olympic Mountains in the background at Paine Field in Everett, Wash. Boeing is reporting another huge loss, this one because of a setback to its 777X widebody jetliner. Boeing said Wednesday, Jan. 27, 2021, it lost $8.4 billion in the fourth quarter on weaker demand for planes during the pandemic. (AP Photo/Ted S. Warren, File)
Boeing says 2 directors are leaving as board faces scrutiny

Arthur Collins Jr. and Susan Schwab won’t stand for reelection at the shareholder meeting in April.