Boeing CEO Departs Amid In-Flight Blowout and Safety Concerns

Unique Points

• Boeing CEO Dave Calhoun is the latest in a line of former Boeing chief executives who have left due to scandal or disaster.
• Calhoun's departure follows an in-flight blowout believed to have been caused by assembly mistakes made at the troubled aerospace giant's Renton plant.
• Over 28 years, the five Boeing leaders lasted between 15 months and a decade.
• Philip Condit reshaped the company and ended his tenure after two fatal 737 MAX crashes.
• Harry Stonecipher resigned on March 6, 2005 due to what was seen as another ethical lapse for a company that had been trying to put two years of scandal behind it.
• James McNerney retired after a decade of record aircraft sales but troubles with the 787 Dreamliner program where jet deliveries were delayed and Dreamliners were grounded for three months because of overheating batteries.
• Dennis Muilenburg was ousted in the aftermath of the 737 MAX crashes, which killed a combined 346 people, and he drew condemnation for his handling of the crashes.
• Boeing acquired South Carolina's 787 plants not out of any grand McNerney vision but because its outsourcing partners had failed.
• The Renton 737 plant raised its production to double the number of jets per month compared with when McNerney took over, and Washington state's Boeing employee count grew by nearly 40%.
• Dave Calhoun was appointed in the midst of the MAX disaster and his tenure was immediately rocked by a second calamity - COVID-19 pandemic.
• The fallout from an Alaska Airlines 737 MAX 9 midair blowout prompted Dave Calhoun's departure, plans for which were announced on Monday.

Accuracy

No Contradictions at Time Of Publication

Deception (50%)

• The article implies that all Boeing CEOs during this period were responsible for ethical lapses and financial woes, when in fact some also experienced significant successes. For example, James McNerney oversaw record aircraft sales despite troubles with the 787 Dreamliner program.
• The article states that since Philip Condit's appointment in 1996, four of the five CEOs have left in the aftermath of professional or personal scandal. This is not entirely accurate as James McNerney retired after a decade of record aircraft sales and Dennis Muilenburg was ousted due to the 737 MAX crashes.

Fallacies (85%)

• The article describes Philip Condit's tenure at Boeing reshaped the company, but it does not provide any evidence to support this claim.

Bias (100%)

None Found At Time Of Publication

Site Conflicts Of Interest (100%)

None Found At Time Of Publication

Author Conflicts Of Interest (0%)

None Found At Time Of Publication

Unique Points

• Boeing CEO Dave Calhoun will step down at the end of the year
• Barry Valentine, a former senior official with the Federal Aviation Authority (FAA), said Boeing's management was traditionally composed of engineers but changed as it responded to new rivals such as Airbus
• The Alaska Airlines incident reinforced perceptions that Boeing had not learned any lessons and presided over a culture where safety placed second fiddle to profitability
• Boeing is being sued by several dozen passengers who were onboard Alaska Airlines Flight 1282 en route from Portland International Airport to Ontario International Airport in San Bernardino County, California, on January 5
• Ed Pierson, a former Boeing whistleblower, said he had not been surprised by the incident as there have been production quality defects that came to light in the last couple of years

Accuracy

No Contradictions at Time Of Publication

Deception (50%)

• The article quotes former whistleblower Ed Pierson stating that the incident was predictable and a massive leadership failure without providing any evidence to support this claim. For example, it states that Calhoun was appointed in 2020 to revive the company’s fortunes amid one of the worst public trust crises in its 100-year-old history, following two fatal crashes of Boeing 737 MAX jets in 2018 and 2019. However, it does not mention any specific actions taken by Calhoun to address these issues or improve the company's safety record.
• The article presents a quote from Sean O'Keefe stating that whoever is appointed at Boeing will need to work hand in hand with its airline customers, when it does not mention any specific concerns or issues raised by these customers. For example, it states that Calhoun was appointed in 2020 to revive the company’s fortunes amid one of the worst public trust crises in its 100-year-old history, following two fatal crashes of Boeing 737 MAX jets in 2018 and 2019. However, it does not mention any specific actions taken by Calhoun to address these issues or improve the company's safety record.
• The article quotes former FAA official Barry Valentine stating that Boeing has traditionally been composed of engineers but this is not entirely accurate as the company has diversified into other areas such as accountancy and finance. For example, it states that Calhoun was appointed in 2020 to revive the company’s fortunes amid one of the worst public trust crises in its 100-year-old history, following two fatal crashes of Boeing 737 MAX jets in 2018 and 2019. However, it does not mention any specific actions taken by Calhoun to address these issues or improve the company's safety record.
• The article presents the shake-up at Boeing's leadership as a positive step towards fixing the company's safety crisis when in reality it may be too little too late. For example, it states that Calhoun was appointed in 2020 to revive the company’s fortunes amid one of the worst public trust crises in its 100-year-old history, following two fatal crashes of Boeing 737 MAX jets in 2018 and 2019. However, it does not mention any specific actions taken by Calhoun to address these issues or improve the company's safety record.

Fallacies (85%)

• The eyes of the world are on us
• We are going to fix what isn't working, and we are going to get our company back on the track towards recovery and stability.

Bias (85%)

• The article refers to the 2018 and 2019 crashes as fatalities, which implies that they were intentional acts by the company. This is not supported by evidence and may be an attempt to shift blame away from Boeing's responsibility for safety.
• The author uses language such as 'crisis', 'shaking up leadership', and 'fixing what isn't working' to create a sense of urgency around Boeing, which could be seen as sensationalist rather than objective reporting.

Site Conflicts Of Interest (50%)

• Andrew Buncombe quotes Dave Calhoun as saying that Boeing has been working hard to fix its problems with the 737 MAX, but he also notes that some critics have accused it of being too slow. This shows a bias towards Calhoun and an attempt to present him in a positive light.
• Andrew Buncombe writes about how the Federal Aviation Authority (FAA) has been criticized for its handling of the 737 MAX crisis, but he also notes that some critics have accused it of being too lenient on Boeing. This shows a bias towards the FAA and an attempt to present it in a negative light.
• Andrew Buncombe writes that Boeing has been under fire for its handling of the 737 MAX crisis, but he also notes that some critics have accused it of being too quick to blame human error. This shows a bias towards Boeing and an attempt to downplay the severity of the situation.

Author Conflicts Of Interest (50%)

None Found At Time Of Publication

Unique Points

• The FBI has told passengers on the Alaska Airlines Boeing 737 Max that lost a door-plug panel in midflight that they might be victims of a crime.
• Four bolts used to help secure the panel were missing after the plane was worked on at a Boeing factory in Renton, Washington.
• The U.S. Justice Department has opened a criminal investigation into whether the panel blowout violated terms of a 2021 settlement that let Boeing avoid prosecution for allegedly misleading regulators who certified the 737 Max.
• Mark Lindquist, a lawyer representing some of the passengers on the Alaska Airlines flight in a lawsuit against Boeing, shared the FBI letter with The Associated Press.
• Robert Clifford, a Chicago lawyer representing some of those families, said his clients are grateful that the Justice Department is following a different policy with the Alaska passengers.

Accuracy

No Contradictions at Time Of Publication

Deception (100%)

None Found At Time Of Publication

Fallacies (85%)

None Found At Time Of Publication

Bias (85%)

• The FBI has told passengers on the Alaska Airlines Boeing 737 Max that lost a door-plug panel in midflight that they might be victims of a crime.
• This case is currently under investigation by the FBI.

Site Conflicts Of Interest (100%)

None Found At Time Of Publication

Author Conflicts Of Interest (0%)

None Found At Time Of Publication

Unique Points

• Boeing CEO Dave Calhoun is the latest in a line of former Boeing chief executives who have left due to scandal or disaster.
• Calhoun's departure follows an in-flight blowout believed to have been caused by assembly mistakes made at the troubled aerospace giant's Renton plant.
• The bulk of Calhoun’s more than $20 million in pay was supposed to come from his long-term incentive pay award, which had a target of $17 million. However, by the end of 2023 he did not see any progress on realignment of engineering function; 777X twin-engine jet entry into service and delivery and production ramp-up.
• To incentivize an executive to be serious about something and make material changes, especially if it's a material risk to the business, we would expect to see some revisions in incentive programs. However, it is unclear at this point what kind of revisions will be made for Pope.

Accuracy

• Calhoun's departure follows an in-flight blowout believed to have been caused by assembly mistakes made at the troubled aerospace giant’s Renton plant.
• The bulk of Calhoun's more than $20 million in pay was supposed to come from his long-term incentive pay award, which had a target of $17 million. However, by the end of 2023 he did not see any progress on realignment of engineering function; 777X twin-engine jet entry into service and delivery and production ramp-up.

Deception (30%)

• The article states that Boeing has been beset by problems since before Calhoun even stepped into the CEO role to replace Dennis Muilenburg in 2019 after 346 people died while flying in Boeing-manufactured planes. However, this is not entirely accurate as there were issues with the company's engineering and assembly process prior to his appointment.
• The article states that Calhoun has left amid a strong lack of confidence among customers and the public after parts of Boeing-manufactured planes began blowing off midflight; last week members of the Boeing board, including Kellner, began holding meetings with major customers without Calhoun present. However, this is not entirely accurate as there were issues with customer trust prior to his departure.
• The article states that an executive from outside the company would have required Boeing to offer them make-whole payments and a lot of incentives to lure executives from other companies to take over a business in crisis. However, this is not entirely accurate as there are different types of compensation packages available for executives.

Fallacies (75%)

• The author uses an appeal to authority by stating that Jason Schloetzer is a professor at Georgetown University and Maria Vu is senior director of North American compensation research at proxy advisory firm Glass Lewis without providing any evidence or context for their expertise in CEO succession and effectiveness.
• The author uses an informal fallacy called 'false dilemma' by presenting only two options: hiring someone from outside Boeing or going with Pope as an internal CEO pick. This oversimplifies the situation and ignores other possibilities that could be considered.

Bias (85%)

• The appointment of Stephanie Pope as CEO is a sign that Boeing is looking for change in its culture.

Site Conflicts Of Interest (50%)

• Boeing is a $117 billion manufacturing company
• Dave Calhoun has been covering the industry for Fortune for many years

Author Conflicts Of Interest (0%)

None Found At Time Of Publication