Dennis Muilenburg will succeed Albaugh as president and CEO of Boeing Integrated Defense Systems.
The change in leadership comes just days after Boeing firmed up plans to fly its oft-delayed 787 Dreamliner by the close of 2009 after accumulating more than two years worth of delays.
UPDATE 5:45 PM: Flight's story is now up. CEO Jim McNerney says the succession planning let Boeing to consider both internal and external candidates for the BCA CEO role. McNerney cited Albaugh's experience being able to provide "technical oversight at BCA", a reference to his background as an engineer. Carson's background was rooted on the business operations side of Boeing, not its engineering side. McNerney says Albaugh has a "working knowledge" of the 787 program. He also added that Albaugh "is the best person in Boeing at this time" for his new role, an important caveat that does not discount the future leadership potential of executives Pat Shanahan and Ray Conner who were both believed to be front runners for the BCA chief position in the event Carson retired.
Additional updates and full internal statements of both Carson and Albaugh are available below the fold.
Statement of incoming BCA President and CEO Jim Albaugh to the employees of The Boeing Company:
Earlier today, Scott Carson announced his retirement from Boeing after 38 years of service. I've had the pleasure of working with Scott over the past 12 years and know firsthand his dedication and commitment to Boeing and the aerospace industry. He has made many contributions to the company over the past four decades and I am honored to follow in his footsteps as the new leader of Boeing Commercial Airplanes.
Growing up in eastern Washington, I remember watching the contrails from 707s and B-52s flying overhead. As I grew older, I recognized the great significance of these aircraft. To this day, I believe Boeing did more to change the 20th century than any other company on Earth. Over the past 90 years, the men and women of this company have changed the way people travel and experience the world, the way we communicate, the way we protect freedom and democracy, and the way we look at our universe.
And much of this was done in Puget Sound. From the 707, which marshaled in the commercial aviation jet age; to the revolutionary 747 with its signature upper deck; to the increased fuel efficiency of the 757 and greater flexibility of the 767; to the 737, the world leader in single-aisle passenger transportation and the all digital airplane, the 777, Boeing has led the way in commercial aviation.
It was also here in Puget Sound where commercial derivative military aircraft were born - a product line reaching back in history and one that will take us far into the future. From the 707 came the KC-135 Stratotanker and Stratolifter; the E-3 AWACS; E-6 Mercury for the U.S. Navy and the E-8 JSTARS. From the Boeing 737 come the T-43, AEW&C, the P-8 Poseidon and the P-I for India. The 747 became today's Air Force One, the E-4B National Airborne Operations Center and the Airborne Laser. The 767 became tankers for Italy and Japan and also the Japanese AWACS.
Boeing is truly an iconic company and I believe we have the opportunity to change the 21st century just as we have changed the last one. The 787 is the starting point.
In its soul, Boeing has always been and remains an engineering company. As an engineer I look forward to learning from and working with you. The heart of this company is the skilled machinists, technicians and mechanics - true craftsmen and wizards - who deliver on their promises everyday. I look forward to understanding what you believe can be done to make the company even better still.
Being part of the world's most capable and largest aerospace company is a privilege. Working with the world's premier commercial airplane company team as we prepare to fly two revolutionary airplanes - the 787 and 747-8 - is an opportunity of a lifetime.
Greatness, though, does not come easily. It is not an entitlement. It must be proven time and time again each and every day. We work on some of the most complex and challenging systems in the world. With challenges oftentimes are issues. And today we are facing significant issues on our two major development programs. It is imperative that we face into these challenges and deliver to our customers. Going forward I believe we have three imperatives: flawless execution, profitable growth and improved efficiency. It will take the personal commitment and leadership of all of us to achieve these goals.We have much to accomplish. I know we have the right team in place. Over the next several months, I look forward to meeting you and learning from each of you. Together there is nothing we can't do...JIM
UPDATE 4:43 PM: Statement of BCA President and CEO Scott Carson to the employees of The Boeing Company:
An Incredible Journey4:37 PM: Boeing will be holding a conference call at 5:15 ET with CEO Jim McNerney that will be covered here and on twitter as it happens.. In recent weeks Carson's retirement has been widely rumored and today announcement confirms his decision to leave Boeing after nearly 41 years. Carson began at Boeing in the B-1 program in 1973 as a financial analyst and moved to management in 1976.
Today I am announcing my retirement from Boeing, effective at the end of the year. For me this is the end of a journey that began nearly 41 years ago when I joined Boeing for the first time. It has been an incredible journey. I have seen many changes but the constant throughout has been the amazing people of Boeing who believe so deeply in what we do, and are so proud of the products and services we provide our customers.
My decision is tied to many factors, but perhaps the most important reason for me was resetting the schedule on the 787. With this baseline in place the new leader will have a clear path forward. Tomorrow Jim Albaugh will assume the reins here at Commercial Airplanes. I have worked with Jim over the past 12 years and know him to be a strong and focused leader. Between now and the end of the year, I will help Jim as needed in the transition and assist on special projects for the company.
It has been my honor and privilege to work with each and every one of you over the past three years in my present capacity, and before that in the Sales organization. Throughout my career I have treasured the rewarding experience of working with and serving our customers around the world. It has been one of the great highlights of my years with Boeing, and one that I will always remember.
Despite the current challenges facing our global economy and the industry, I remain confident in the future. I also know that you will give Jim the same outstanding support and world-class effort that you have demonstrated to me over the past three years. I wish you every success and thank you from the bottom of my heart for the journey we have taken together.