Photo credit: finance.yahoo.com
SEATTLE (Reuters) – The leadership structure at Boeing is shifting as Stephanie Pope, the head of Boeing Commercial Airplanes, is set to guide the recovery of the vital airplane manufacturing division amid a reorganization. Her previous role as chief operating officer has been dissolved, but she will still serve as the second-in-command at the company.
This transition signifies a more concentrated approach toward Pope’s responsibilities. Already overseeing the production of aircraft for global airlines, she will also focus on enhancing safety measures and increasing output following a series of aviation incidents.
Pope’s tenure as chief operating officer officially ended on February 19, a move confirmed by Boeing this week.
Interestingly, Boeing has decided against appointing a new chief operating officer, according to a source with knowledge of the situation who requested anonymity to discuss internal matters.
In after-hours trading, Boeing’s stock showed little movement.
Pope initially assumed the chief operating officer role in December 2023, when former CEO David Calhoun appointed her as his successor. Following an incident in January 2024 where a panel blew out mid-flight on a near-new 737 MAX jet, she was also tasked with managing Boeing Commercial Airplanes, a department now under intense scrutiny.
This incident highlights ongoing concerns regarding production quality within the division and ultimately contributed to Calhoun’s departure from the company. In August, Kelly Ortberg was appointed as Boeing’s new CEO.
Boeing’s commercial airplane production has faced numerous challenges since 2019, when two catastrophic 737 MAX crashes brought to light significant safety issues. This division has traditionally been the largest in terms of revenue and workforce within Boeing.
Despite these hurdles, there are signs of recovery; in January, Boeing reported the delivery of 45 airplanes, a notable rise from 30 in December, marking the most deliveries in a single month since 2023.
Avolon CEO Andy Cronin expressed optimistic sentiments about Boeing’s progress after visiting their production facilities in Seattle, remarking that the company is showing encouraging signs of improvement.
Source
finance.yahoo.com