Boeing CEO Dennis Muilenburg testifies at a hearing in front of congressional lawmakers on Capitol Hill in Washington, DC on October 30, 2019. (Photo by Olivier Douliery/AFP/Getty Images)
Olivier Douliery/AFP/Getty Images
Boeing CEO Dennis Muilenburg testifies at a hearing in front of congressional lawmakers on Capitol Hill in Washington, DC on October 30, 2019. (Photo by Olivier Douliery/AFP/Getty Images)
Now playing
01:53
Boeing CEO Dennis Muilenburg resigns
John Oliver addressed the recent fatal police shootings of Daunte Wright and Adam Toledo in a passionate monologue on "Last Week Tonight."
Last Week Tonight/HBO
John Oliver addressed the recent fatal police shootings of Daunte Wright and Adam Toledo in a passionate monologue on "Last Week Tonight."
Now playing
01:38
John Oliver to White Americans: 'March in the streets'
WASHINGTON, DC - DECEMBER 12: U.S. President Donald Trump departs on the South Lawn of the White House, on December 12, 2020 in Washington, DC. Trump is traveling to the Army versus Navy Football Game at the United States Military Academy in West Point, NY. (Photo by Al Drago/Getty Images)
Al Drago/Getty Images
WASHINGTON, DC - DECEMBER 12: U.S. President Donald Trump departs on the South Lawn of the White House, on December 12, 2020 in Washington, DC. Trump is traveling to the Army versus Navy Football Game at the United States Military Academy in West Point, NY. (Photo by Al Drago/Getty Images)
Now playing
02:18
Trump said electing Biden would crash the markets. It didn't
Scene video following a crash involving a Tesla Saturday night in Spring, TX
Scott Engle
Scene video following a crash involving a Tesla Saturday night in Spring, TX
Now playing
00:55
Fatal Tesla crash had no one in the driver's seat, police say
CNN
Now playing
03:22
Bank of America CEO reveals his top worry about the economy
US Navy
Now playing
01:28
Pentagon confirms UFO video is real, taken by Navy pilot
marte fotos volcan olympus mons sistema solar hope ultravioleta perspectivas mexico_00000411.png
marte fotos volcan olympus mons sistema solar hope ultravioleta perspectivas mexico_00000411.png
Now playing
04:12
Why we are going to Mars
Twitter | @brady9dream
Now playing
02:10
Pet owners pitch their pups to be dog brew's 'Chief Tasting Officer'
Now playing
01:32
Scientists turned spiderwebs into music and it sounds like a nightmare
LONDON, ENGLAND - DECEMBER 07:  A visual representation of the digital Cryptocurrency, Bitcoin on December 07, 2017 in London, England. Cryptocurrencies including Bitcoin, Ethereum, and Lightcoin have seen unprecedented growth in 2017, despite remaining extremely volatile. While digital currencies across the board have divided opinion between financial institutions, and now have a market cap of around 175 Billion USD, the crypto sector coninues to grow, as it continues to see wider mainstreem adoption. The price of one Bitcoin passed 15,000 USD across many exchanges today taking it higher than previous all time highs.  (Photo by Dan Kitwood/Getty Images)
Dan Kitwood/Getty Images
LONDON, ENGLAND - DECEMBER 07: A visual representation of the digital Cryptocurrency, Bitcoin on December 07, 2017 in London, England. Cryptocurrencies including Bitcoin, Ethereum, and Lightcoin have seen unprecedented growth in 2017, despite remaining extremely volatile. While digital currencies across the board have divided opinion between financial institutions, and now have a market cap of around 175 Billion USD, the crypto sector coninues to grow, as it continues to see wider mainstreem adoption. The price of one Bitcoin passed 15,000 USD across many exchanges today taking it higher than previous all time highs. (Photo by Dan Kitwood/Getty Images)
Now playing
03:10
Bitcoin has an energy problem
Accused $50 billion Ponzi scheme swindler Bernard Madoff exits federal court March 10, 2009 in New York City. Madoff was attending a hearing on his legal representation and is due back in court Thursday.  (Photo by Mario Tama/Getty Images)
Mario Tama/Getty Images
Accused $50 billion Ponzi scheme swindler Bernard Madoff exits federal court March 10, 2009 in New York City. Madoff was attending a hearing on his legal representation and is due back in court Thursday. (Photo by Mario Tama/Getty Images)
Now playing
03:11
Bernie Madoff, infamous Ponzi schemer, dead at 82
Now playing
05:18
Coinbase CFO: We're an on-ramp to the crypto economy
A man checks vine buds during the burning of anti-frost candles in the Luneau-Papin wine vineyard in Le Landreau, near Nantes, western France, on April 12, 2021, as temperatures fall below zero degrees celsius.
Sebastien Salom-Gomis/AFP/Getty Images
A man checks vine buds during the burning of anti-frost candles in the Luneau-Papin wine vineyard in Le Landreau, near Nantes, western France, on April 12, 2021, as temperatures fall below zero degrees celsius.
Now playing
01:37
See how French winemakers are trying to save their crops from frost
SUEZ, EGYPT - MARCH 29: The container ship 'Ever Given' is refloated, unblocking the Suez Canal on March 29, 2021 in Suez, Egypt. This morning the container ship came partly unstuck from the shoreline, where it ran aground in the canal last Tuesday, and later resumed its course shortly after 3pm local time. The Suez Canal is one of the world's busiest shipping lanes and the blockage had created a backlog of vessels at either end, raising concerns over the impact on global shipping and supply chains. (Photo by Mahmoud Khaled/Getty Images)
Mahmoud Khaled/Getty Images
SUEZ, EGYPT - MARCH 29: The container ship 'Ever Given' is refloated, unblocking the Suez Canal on March 29, 2021 in Suez, Egypt. This morning the container ship came partly unstuck from the shoreline, where it ran aground in the canal last Tuesday, and later resumed its course shortly after 3pm local time. The Suez Canal is one of the world's busiest shipping lanes and the blockage had created a backlog of vessels at either end, raising concerns over the impact on global shipping and supply chains. (Photo by Mahmoud Khaled/Getty Images)
Now playing
00:57
Egypt seizes Ever Given ship, asks for $900M in compensation
CNN
Now playing
03:06
Hear doctor's message for people with J&J vaccine concerns
Barbers from King's Cutz give haircuts indoors while observing COVID-19 safety restrictions on March 13, 2021 in Los Angeles, California.
Mario Tama/Getty Images
Barbers from King's Cutz give haircuts indoors while observing COVID-19 safety restrictions on March 13, 2021 in Los Angeles, California.
Now playing
01:43
US consumer prices increased in March
(CNN Business) —  

Boeing CEO Dennis Muilenburg was ousted on Monday after a tumultuous period in which the company faced a series of setbacks, including two fatal crashes, delays and numerous issues with its 737 Max airplane. Boeing continues to struggle to get its most important product back in the air.

Chairman David Calhoun will take over as CEO, effective January 13, 2020.

Boeing (BA) said in a press release that its board of directors decided to part ways with Muilenberg in part because its customers and regulators no longer trusted the company’s decision-making.

“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,” the company said.

Boeing’s 737 Max, which was the company’s bestselling commercial jet, was grounded worldwide in March 2019 after two fatal crashes killed 346 people. It still hasn’t returned to flight, despite Boeing’s efforts to clear a software fix with regulators.

The company said earlier this month that it would suspend production of the 737 Max starting in January. Boeing has continued to produce the 737 Max during its grounding, but uncertainty about when the federal regulators will clear the planes for flight has made production untenable. Boeing shifted its timeline for the 737 Max’s return to the skies several times throughout the year, as it became evident that it could not easily satisfy regulators’ concerns about the plane’s safety.

Boeing also lost lawmakers’ confidence, particularly after a former employee testified before Congress earlier this month that Boeing ignored safety concerns when building the 737 Max. One whistleblower suggested Boeing had a culture problem in which it cut corners to save on costs and made production mistakes.

Other problems have plagued Boeing during Muilenberg’s tenure. Another version of the 737 Max, an older version of 737 NG aircraft, was found to have structural cracks that forced airlines to inspect their fleets.

A spacecraft the company is building to ferry NASA astronauts to the International Space Station malfunctioned last week during its first-ever trip to space. The uncrewed test flight, which came after years of delays and setbacks, was intended to be the final major test before it was finally ready to fly humans.

The company has also been roundly criticized by federal oversight officials over billion-dollar cost overruns and missed deadlines with another NASA contract: to build the Space Launch System, a massive rocket that the space agency wants to use to return humans to the moon.

The growing list of issues with the 737 Max and the company’s handling of the situation are likely the main reasons Boeing decided to oust its longtime CEO, said Richard Aboulafia, aerospace analyst with the Teal Group.

“It was a series of missteps with the FAA, missteps to communicate with Congress, lack of communication with customers and with suppliers,” Aboulafia said. “If there was a final straw, it was the way the [production] shutdown happened with not a lot of explanation or plans as to what would happen.”

Boeing still has a strong balance sheet, and its stock is up marginally this year despite all of its setbacks. But questions about the company’s leadership grew louder as the company’s missteps added up.

“Under the company’s new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers,” the company said in a statement.

Boeing’s stock rose 3% in early trading Monday.

How Muilenburg was ousted

Muilenburg was informed Sunday night that Boeing’s board of directors would ask him to resign, according to a person familiar with the board’s decision.

The call came after board members met in-person last weekend and expressed concerns that Muilenburg got “sideways” with the FAA as well as with some customers who have been hurt and confused by all the shifting timelines for the 737 Max, the source said. The board, however, didn’t directly address Dennis’s future at the board meeting last weekend.

Newly appointed CEO Calhoun spent last week calling and talking to the FAA and customers himself. And the board met again over the weekend — this time over the phone — and decided to ask Muilenburg to step down.

Some board members expressed concerns that a leadership change could destabilize the company. But, ultimately, the board concluded the company and the FAA are in a good place now with a schedule and timeline to get the 737 the certification it needs.

Muilenburg, 55, became CEO of the world’s largest aerospace company in July 2015. He previously held the chairman role as well but relinquished that seat in October. He had worked at Boeing in a number of different roles since 1985.

Incoming CEO Calhoun has served on Boeing’s board since 2009. He has also served as a senior managing director at Blackstone Group and he previously was the chairman and CEO of Nielsen Holdings.

What’s next for Boeing

Aviation regulators continue to follow a thorough process for returning the 737 Max to service, the FAA said in a statement Monday. The FAA added it expects Boeing will continue to support that process with its new CEO.

The list of lawsuits that airlines and other Boeing customers have filed against the company continues to grow. The longer the 737 Max remains grounded, the more Boeing will have to pay to its airline customers in compensation. The 737 Max crisis is far from over, and the company’s new leadership will have to navigate those tricky next steps.

Lawrence Kellner, a Boeing board member who will become chairman, praised Calhoun’s “deep industry experience” in a statement Monday. Kellner said Boeing’s future leader has “a proven track record of strong leadership, and he recognizes the challenges we must confront.”

A successful test flight of Boeing’s Starliner capsule was seen as a chance for the company to garner some positive attention amid its ongoing scandals. But the mission turned into yet another black eye. It went awry shortly after Starliner was launched into space on Friday and it failed to put itself on the correct path in orbit, forcing Boeing to end the mission a week early. That could further delay Boeing’s attempt to start delivering humans to the space station, and the company may have to test Starliner again before sending people into space.

– CNN’s Cristina Alesci contributed to this report