Dave Calhoun, who took charge of Boeing in 2020 following two devastating crashes, surprised no one when announcing he will step down this year.
Investors hoped Calhoun could revive Boeing’s fortunes, but the company’s reputational crisis has only worsened. January’s mid-air scare, where a panel ripped off a plane, left passengers shaken and regulators scrambling.
Boeing’s stock price has plummeted by a quarter in 2024 alone, and has lost half its value over the last five years.
The Boeing fallout has impacted Ryanair, which has faced delivery delays. Nevertheless, Michael O’Leary said he would have preferred Calhoun to stay on, and it’s true that Boeing’s problems precede Calhoun.
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Indeed, shareholders can’t escape blame. Over the last decade, Airbus spent much more than Boeing on research and development. Instead, Boeing returned $59 billion to shareholders in dividends and buy-backs, roughly six times as much as Airbus.
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Boeing was initially rewarded for these choices, with stock returns dwarfing those of Airbus between 2013 and 2018. However, the chickens eventually came home to roost, with Airbus growing healthily and Boeing plummeting.
Calhoun’s replacement faces a difficult task; regaining trust will be a long journey.
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