Yahoo Finance

Boeing (BA) announced its CEO Dennis Muilenburg resigned Monday following the company’s fallout over two fatal 737 Max jet crashes.

A former acting FAA administrator told Yahoo Finance that is a “wise move” on Boeing’s part.

“I think this changing leadership will probably help in assuring that they’re moving in the right direction,” said Barry Valentine on The Ticker.

Muilenburg came under fire over his handling of complaints over the 737 Max’s safety. The aircraft has been grounded since March after crashes in Indonesia and Ethiopia killed a total of 346 people.

Boeing’s board of directors wrote in a statement that “a change in leadership was necessary to restore confidence in the Company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders.”

To that end, Valentine stresses that Boeing historically has had “a superb safety record over the decades” and the 737 Max accidents are “a bit of an aberration.”

Still, he said “the FAA, the Congress, the public, everyone wants to be assured that as Boeing goes forward, that excellent safety record they've always had, will continue to be maintained.”

The news comes after Boeing said last week that it’s extending the grounding of the 737 Max until June, which led to the cancellation of thousands of flights.

The aviation giant’s move to replace its CEO may be a step toward gaining regulators’ confidence.

“[Everyone] has been taking a look at the relationship between the regulator and the regulated, to make sure the relationship is such that meets the balance between the need for companies that make products to be able to deliver products to market,” Valentine said.

“But at the same time, [they need to] make sure public safety is underscored as well,” he added.

Boeing's current chairman, David Calhoun, will replace Muilenburg as president and CEO beginning Jan. 13, 2020. The company’s Chief Financial Officer Greg Smith will serve as interim CEO during the transition.

Grete Suarez is producer at Yahoo Finance for YFi PM and The Ticker. Follow her on Twitter: @GreteSuarez

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