Here’s who could replace Calhoun at the aircraft manufacturer

Boeing also announced Monday that it is replacing chairman Larry Kellner and chief executive of its commercial jet unit Stan Diehl.

Calhoun told CNBC on Monday that the decision to retire was “100 percent” his own and that he would be involved in finding his successor. His departure doesn’t come as much of a surprise given the struggles of the past few months.

Boeing customers have been frustrated under Calhoun’s watch as they face the fallout from recurring quality problems that span programs like the 737 Max, the 787 Dreamliner and the two 747s that will serve as Air Force One planes.

“We need someone to fix Boeing,” one airline CEO, who was not authorized to speak to the media, told CNBC after Boeing announced the leadership change on Monday. “They clearly needed a change.

With supply chain issues, quality lapses and more regulatory scrutiny after a panel exploded on Alaska Airlines’ 737 Max 9 in January, plane deliveries are arriving late, and airline executives say the problems have forced them to change their growth and fleet plans.

Boeing’s customer executives told CNBC they want the company’s new leader to have manufacturing acumen, experience in the highly regulated and technical world of aviation and, perhaps most difficult of all, the ability to rally Boeing employees and ensure a culture of safety, consistency and innovation.

“It will be a challenge to execute. You’re going to need someone with a tremendous amount of energy and commitment,” said John Plueger, CEO of Air Lease, a major buyer of Boeing jets that leases them to airlines. “You don’t want someone for two years. You want someone at the helm of the ship as long as possible.’

Boeing’s next boss will have to contend not only with the company’s internal struggles, but also with the loss of market share to rival Airbus. Meanwhile, China is making progress with building its own commercial aircraft.

“I want someone who knows how to handle a large, long-cycle business like ours,” Calhoun said in an interview with CNBC on Monday while announcing his departure. “It’s not just the production of the aircraft. This is the development of the next aircraft. Our next leadership role will be developing … the next airplane for the Boeing Company.”

Financial analysts applauded the time Boeing is taking to find Calhoun’s replacement. Four-year Boeing board member Steve Mollenkopf, a former Qualcomm CEO who will take over as independent chairman of the board, will lead the search.

“This provides leadership continuity that could not happen with a knee-jerk change, and CEO Dave Calhoun clearly agrees with the need to increase safety,” TD Cowen analyst Kai von Rumor said in a Monday note.

While Boeing hasn’t commented on its top candidates, here’s who some aviation experts think could potentially lead Boeing:

General Electric CEO Larry Culp “is probably at the top of the list for a Boeing CEO,” said Richard Aboulafia, managing director of AeroDynamic Advisory, an aviation consulting firm.

Culp is poised to head GE’s soon-to-be spun-off aviation unit, a company that makes and repairs engines that power both Boeing and rival Airbus jets. Culp led the turnaround for the conglomerate and led the company’s break-up.

“The relationship with Boeing has never been stronger,” Culp told reporters earlier this month at an investor event. “Obviously, 2024 didn’t turn out the way they would have liked, let alone the way we would have liked. We try to support them in any way we can.”

But Culp is focused on GE’s aerospace unit as a stand-alone company, a GE spokesman said in response to questions about his potential future at Boeing.

Pat Shanahan, interim CEO of Spirit AeroSystems, is another possibility, Aboulafia said.

A three-decade veteran of Boeing, Shanahan was appointed last October to head the Boeing supplier that makes fuselages for the company’s 737 Max and other parts while Spirit dealt with its own quality problems that spilled over to Boeing.

Boeing is in talks to buy Spirit, bringing the airframe maker back in-house after spinning it off nearly two decades ago. A reunion could naturally appoint Shanahan as CEO of the combined company.

“Mr. Shanahan remains solely focused on driving a zero-defect culture across all aspects of Spirit AeroSystems,” Spirit spokesman Joe Buccino told CNBC on Monday.

Aboulafia also mentioned Carrier Chairman and CEO David Gitlin, who is on Boeing’s board.

Gitlin has a background in aviation, having previously served as president and chief operating officer at Collins Aerospace. Aviation experts said someone with strong manufacturing and operations experience would be needed.

The carrier did not respond to a request for comment.

Stephanie Pope, who was recently promoted to chief operating officer after serving as the head of Boeing’s global services division, is the most obvious internal option to succeed Calhoun. (Former Boeing CFO Greg Smith is retiring from the company in 2021. He was also considered a possible successor.)

But Pope will take over from Deal, who is stepping down as head of Boeing’s commercial aircraft division. And one aviation executive asked why Boeing wouldn’t have announced her appointment Monday if she was the choice.

“The management changes are aimed at institutionalizing a company-wide safety priority by bringing in new blood,” TD Cowen’s von Rumohr wrote.

— CNBC’s Phil LeBeau contributed to this report.