Boeing CEO Dave Calhoun to step down by end of 2024

March 25 (UPI) -- Boeing announced Monday that CEO Dave Calhoun will step down at the end of the year as the company faces a string of issues with its 737 aircraft.

The company said Calhoun will stay on until the end of 2024 to "complete the critical work underway to stabilize and position the company for the future."

"It has been the greatest privilege of my life to serve Boeing," Calhoun said in a letter to employees. "The eyes of the world are on us, and I know that we will come through this moment a better company."

Calhoun opened the letter by referring to Alaska Airlines Flight 1282, where a door plug fell from a Boeing 737-9 MAX aircraft shortly after taking off from Portland, Ore., on Jan. 5, as a "watershed moment" for the company."

"We must continue to respond to this accident with humility and complete transparency. We also must inculcate a total commitment to safety and quality at every level of our company," he said.

Boeing's executive structure was further shaken up as Board Chair Larry Kellner said he would not stand for re-election at the company's annual shareholder meeting, with Steve Mollenkopf elected as chair, where he will lead the board's process of electing the next CEO.

"I am fully confident in this company and its leadership -- and together we are committed to taking the right actions to strengthen safety and quality, and to meet the needs of our customers," Mollenkopf said.

Also effective on Monday, Stephanie Pope replaces Stan Deal as Boeing Commercial Airplanes President and CEO. Deal announced his retirement from the company.

While the Alaska Airlines plane managed to land safely, it sparked a wide-ranging investigation into Boeing's commercial airplane division, uncovering a series of safety and inspection issues.

In the following weeks and months, multiple issues were reported with Boeing planes including a "technical event" on a LATAM Airlines flight in which a 787-9 Dreamliner suddenly dropped about 300 feet about two hours after takeoff, leaving 12 people hospitalized.

Boeing has continued to go through a review of safety policies and improvements and investigations by the Federal Aviation Administration and Congress.

A recent FAA investigation into Boeing and components supplier Spirit found 33 audit failures and 97 incidences of noncompliance. Boeing is currently on the 90-day clock to come up with improved quality control procedures demanded by the FAA in February.

In late January, Boeing reported that annual revenue in 2023 of $22 billion, was up compared to the predicted $21.1 billion after narrowing losses in the fourth quarter.