Dave Calhoun, who assumed leadership of Boeing in 2020 following a couple of catastrophic mishaps, didn’t shock anyone when he declared his resignation imminent this year. Although stakeholders had expectations of Calhoun to rejuvenate Boeing’s prosperity, the firm’s standing issue has only escalated. The unsettling mid-flight event in January, when a plane’s part detached, led to a horrified passenger reaction and immediate regulator response.
Boeing’s share market value has taken a severe hit, falling by 25% within 2024 alone, and observing a 50% decrease over the past half-decade. The upheaval at Boeing has spilled over to Ryanair, causing delayed deliveries. Nevertheless, Michael O’Leary communicated his wish for Calhoun’s continuation, highlighting that Boeing’s difficulties pre-date Calhoun’s incumbency.
Investors, indeed, cannot dodge responsibility. Over the past 10 years, Airbus has vastly outspent Boeing in research and development pursuits, while Boeing allocated $59 billion to investors in dividends and buybacks. This amount is approximately six-fold that of Airbus.
Initially, Boeing’s decisions reaped rewards as stock returns tremendously outpaced those of Airbus between 2013 and 2018. However, reciprocation followed, with Airbus demonstrating steady growth as Boeing suffered a significant downfall. Whoever steps into Calhoun’s shoes is undoubtedly up for a challenging task; it will be a lengthy journey to rebuild trust.