Boeing CEO Dennis Muilenburg to Face Shareholders Post 737 MAX Crashes
Business, Markets

Boeing CEO Dennis Muilenburg to Face Shareholders Post 737 MAX Crashes 

Last updated on April 30th, 2019

Dennis Muilenburg, Chief Executive of Boeing, is all set to attend his first shareholders meetings post the two fatal crashes after which the airlines and regulators from the world grounded Boeing 737 MAX. The meeting is scheduled to take place on Monday in Chicago.

The 55-year-old has been facing one of the worst crises for Boeing in over 50 years.

The two crashes took lives of around 346 people, leading to the grounding of the company’s best-selling plane. The March 10 crash took place five months after the Lion Air nose-dive, which sent the plane nose-diving before it plunged into the Java Sea, taking lives of all the passengers on board including the crewmembers. 

The shareholders filed a lawsuit against Boeing, accusing the company of cheating as the latter hid the defects of the plane that had led to the crashes. In addition, the US transportation authorities and the Department of Justice launched inquiries against the model and the material used in the plane.

The deliveries of 737 MAX around the world were halted as the plane was taken out of service after the March 10 crash. The company has been under scrutiny from the Congress, while the relatives of the victims filed lawsuits to get justice.

The relatives of the Samya Stumo, a 24-year-old American girl who died in March 10 incident, aimed at holding a protest on the meeting site. They believe that the Ethiopian plane crash could have been avoided, if the company had learnt from the previous Lion Air crash.

“Those in charge of creating and selling this plane did not treat Samya as they would their own daughters,” Stumo’s mother Nadia Milleron said.

A week ago, Boeing even sidelined its 2019 financial outlook, putting an end to concession in buying shares. The company claimed that the grounding of 737 MAX has lowered the production to $1 billion in the present. Overall, the company experienced a 10 percent drop as compared to the original number in its stocks.

Apart from being a CEO, Dennis Muilenburg is also the President of Boeing. In the wake of the questions concerning the model’s safety, Muilenburg has been making efforts to gain the investor’s confidence to benefit the manufacturers and for the future of his fastest-selling airplane.

Even though Boeing 737 MAX jet is expected to be flying in late May or early June, the company is under immense pressure from the global regulators to have them convinced that the aircraft is safe to fly again. Dennis Muilenburg has been open to criticism from the flying public and the governments from around the world because of the fatal air crashes.

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