Boeing CEO Dennis Muilenburg is out

Boeing (BAannounced Monday Dennis Muilenburg is resigning from his position as CEO after months of fall-out following two deadly plane crashes.

Current chairman David L. Calhoun will take over as CEO and President beginning January 13, with CFO Greg Smith set to serve as interim CEO until then, Boeing added in a statement. Board member Lawrence Kellner will become non-executive chairman of the board, effective immediately.

Boeing’s 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,” according to the statement.

Shares of Boeing were halted in early trading ahead of the announcement, after closing 1.65% lower Friday. The stock climbed 3.4% to $339.00 per share as of 9:33 a.m. ET, shortly after trading resumed.

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Air Force One, a heavily modified Boeing 747, is seen prior to US President Barack Obama departure from Andrews Air Force Base in Maryland, December 6, 2016, as he travels to Tampa, Florida, to speak about counterterrorism and visit with troops. / AFP / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
Old airplanes, including Boeing 747-400s, are stored in the desert in Victorville, California March 13, 2015. Last year, there were zero orders placed by commercial airlines for new Boeing 747s or Airbus A380s, reflecting a fundamental shift in the industry toward smaller, twin-engine planes. Smaller planes cost less to fly than the stately, four-engine jumbos, which can carry as many as 525 passengers. Picture taken March 13, 2015. To match Insight AEROSPACE-JUMBO REUTERS/Lucy Nicholson
Old airplanes, including Boeing 747-400s, are stored in the desert in Victorville, California March 13, 2015. Last year, there were zero orders placed by commercial airlines for new Boeing 747s or Airbus A380s, reflecting a fundamental shift in the industry toward smaller, twin-engine planes. Smaller planes cost less to fly than the stately, four-engine jumbos, which can carry as many as 525 passengers. Picture taken March 13, 2015. To match Insight AEROSPACE-JUMBO REUTERS/Lucy Nicholson
Boeing 747 also known as a jumbo jet lines up on a runway in preparation for takeoff.
Old airplanes, including British Airways Boeing 747-400s and FedEx planes, are stored in the desert in Victorville, California March 13, 2015. Last year, there were zero orders placed by commercial airlines for new Boeing 747s or Airbus A380s, reflecting a fundamental shift in the industry toward smaller, twin-engine planes. Smaller planes cost less to fly than the stately, four-engine jumbos, which can carry as many as 525 passengers. Picture taken March 13, 2015. To match Insight AEROSPACE-JUMBO REUTERS/Lucy Nicholson
Old airplanes, including British Airways and Air New Zealand Boeing 747-400s, are stored in the desert in Victorville, California March 13, 2015. Last year, there were zero orders placed by commercial airlines for new Boeing 747s or Airbus A380s, reflecting a fundamental shift in the industry toward smaller, twin-engine planes. Smaller planes cost less to fly than the stately, four-engine jumbos, which can carry as many as 525 passengers. Picture taken March 13, 2015. To match Insight AEROSPACE-JUMBO REUTERS/Lucy Nicholson
VLADIVOSTOK, RUSSIA - JUNE 10, 2016: Deicing Rossiya Airlines' Boeing 747-400 EI-XLJ Vladivostok aircraft at a city airport. Rossiya Airlines launched Moscow-Vladivostok-Moscow services on May 31, 2016. Yuri Smityuk/TASS (Photo by Yuri Smityuk\TASS via Getty Images)
Space Shuttle Discovery rides piggyback atop a specially modified Boeing 747 as it departs runway 22 at Edwards Air Force Base in California on its ferry flight back to Kennedy Space Center in Florida August 19, 2005. Discovery began the return journey to its Florida home port from its landing site in California on Friday after having to land at Edwards Air Force base because of thunderstorms at Cape Canaveral. REUTERS/Tom Rogers TR/HK/KS
The interior of Saudi Prince Alwaleed bin Talal's private Boeing 747 airplane in Riyadh, Saudi Arabia, on Tuesday, April 27, 2010. Alwaleed said he will continue working with Goldman Sachs Group Inc. after the U.S. regulator sued the most profitable securities firm in Wall Street history for misleading its investors. Photographer: Waseem Obaidi/Bloomberg via Getty Images
UNITED STATES - JANUARY 18: Interior of the business class section of the life-size display of the new Boeing 747-8 Intercontinental in Renton, Washington, Thursday, Jan. 18, 2007. The plane is a stretched version of the current 747-400 and incorporates interior featured from the 777 and the upcoming 787. (Photo by Kevin P. Casey/Bloomberg via Getty Images)
Wide angle view of the modern flight deck of a Boeing 747 aircraft.
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The leadership shake-up comes months after a March crash of Ethiopian Airlines Flight 302 marked the second deadly incident in less than six months for a Boeing 737 Max. In total, the two crashes killed all 346 people aboard. These accidents have been attributed to issues with the flight’s Maneuvering Characteristics Augmentation System (MCAS) software.

The aircraft has been grounded globally for the past nine months and awaits approval from the Federal Aviation Administration (FAA) to return to service. The Max’s development remains under investigation by the U.S. Department of Justice and Congress.

The months-long grounding of the plane has led to thousands of flight cancelations for airlines around the world and billions of dollars worth of charges for Boeing. The Chicago, Illinois-based company last week announced it would be halting production of the 737 Max starting in January.

Monday’s announcement marks the latest in a series of executive changes for Boeing amid the 737 Max developments. In October, the company replaced Kevin McAllister, its head of commercial aircraft division since 2016, with Stan Deal, who most recently led Boeing’s global services business.

Stakeholders, victims’ families and members of Congress have repeatedly called for Muilenburg’s resignation in the wake of the crashes even as the Board of Directors repeatedly stood behind its leader, a former Boeing engineer and CEO since July 2015. The Board removed Muilenburg from his position as Chairman of the Board in October and replaced him with Calhoun, in a move said at the time to be aimed at giving Muilenburg an opportunity to focus full-time on getting the 737 Max back to service.

“I strongly believe in the future of Boeing and the 737 Max,” Calhoun said in a statement Monday. “I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation.”

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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