Boeing (BA) is attempting to woo back investors.
Shares are up nearly $10 on the day after firing CEO Denis Muilenberg.
“The Board of Directors decided 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,” as quoted by MarketWatch.
Chairman David Calhoun will become the new CEO effective January 13, 2020.
The full press release from Boeing can be found here.
Boeing Attempting to Rebuild Trust
Just weeks ago, the stock came under pressure after revealing 2016 emails that called into question the safety of the 737 Max jet’s flight control system.
The FAA said it found the messages to be “concerning” and “is reviewing this information to determine what action is appropriate.” In addition, FAA Chief Steve Dickson told Boeing’s CEO, “I expect your explanation immediately regarding the content of this document and Boeing’s delay in disclosing the document to its safety regulator,” as quoted by NBC News.
All after two fatal crashes in the Java Sea, and the Ethiopian plane downed in March.
Things got a bit worse for the company after FAA Administrator Stephen Dickson just there was no way the FAA would approve the plane to fly again this year.
In fact, Dickson said, he could not provide a time frame for when the plane will get approval, adding there are 10 or 11 different steps in the certification process that are yet to be completed. “If you do the math, it’s going to extend into 2020,” as quoted by CNN.
At the moment, BA has caught triple bottom support dating back to August 2019. If it can hold that level, we could see a potential bearish gap refill around $370. However, it all depends on when and if the FAA approves Boeing’s planes to take flight again.
In short, it’s all up in the air at the moment.