Boeing replaces senior executive amid 737 Max crisis

Boeing replaces senior executive amid 737 Max crisis
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Boeing has replaced its head of commercial airplanes after two fatal 737 Max plane crashes in the past year.

Kevin McAllister, who was in charge of commercial plans, was replaced by Stan Deal, who headed its global services, effective immediately, the company said in a statement Tuesday.

The statement did not give a reason for McAllister's departure, but cited Deal's experience with commercial airplanes.

"Stan brings extensive operational experience at Commercial Airplanes and trusted relationships with our airline customers and industry partners," CEO Dennis Muilenburg said in a statement.

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"We're grateful to Kevin for his dedicated and tireless service to Boeing, its customers and its communities during a challenging time, and for his commitment to support this transition," he added.

McAllister praised Boeing's "commitment to safety" in a statement that touted his work with the company's employees, adding, "It has been an honor to serve with such a professional team for the past three years."

The New York Times first reported that McAllister was expected to leave, noting that  he is most senior executive to depart from the company after the 737 Max crashes that killed 346 people total.

The newspaper previously reported that McAllister was facing scrutiny due to his handling of customer relationships and the company's commercial division after the two crashes, in October 2018 and March 2019.

Tuesday's news is the latest shake-up at Boeing and comes days after Muilenburg was stripped of his title as chairman of the board. He remains Boeing's chief executive.

After the two fatal crashes, the 737 Max planes were grounded worldwide starting in March. The Times reported that the grounding has cost Boeing at least $8 billion

A task force with members from the governments of several countries found this month that Boeing did not sufficiently inform regulators about aspects of a new automated system that contributed to the two recent crashes of its 737 Max aircraft.

Muilenburg is expected to testify before Congress next week.

Updated: 5:25 p.m.