Investors are zeroing in on Boeing Co's
What Happened: The search follows CEO Dave Calhoun's announcement in March that he would step down by the end of the year. Potential candidates include Patrick Shanahan, Spirit AeroSystems' current CEO, Boeing COO Stephanie Pope, and board chair Steve Mollenkopf.
Patrick Shanahan, known for his previous tenure at Boeing where he earned the nickname "Mr. Fix-It," is considered a significant contender for the CEO position, reported Reuters.
Shanahan took over as Spirit's CEO last October, aiming to stabilize operations and improve cash flow. However, a January incident involving a mid-air panel blowout on a 737 MAX has posed challenges to his turnaround plans.
Following the incident, Spirit committed to investing in autonomous technology, increasing mechanic training, and enhancing inspection processes.
Why It Matters: In May, Spirit announced plans to lay off several hundred workers in Wichita, Kansas, as part of efforts to shore up liquidity.
Despite these challenges, some industry insiders believe Shanahan's long association with Boeing may affect his chances of securing the top job.
Boeing's acquisition of Spirit AeroSystems, set to close by mid-2025, reflects broader changes within the company. Ernest Arvai, president of AirInsight Group, noted that while Shanahan's deep ties to Boeing's culture are evident, the company may need fresh leadership to drive cultural change.
Price Action: Boeing stock has lost more than 11% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF
BA shares are trading lower by 0.43% at $185.90 in premarket at last check Tuesday.
