Boeing (NYSE: BA) Jettisons CEO Muilenburg

The year has not been a great one for Boeing (NYSE: BA). Its stock has been under such turbulence for the last year that, if it were an aircraft itself, no one would ride in a share of Boeing again. It's had its ups and downs, and one of its latest moves have prompted new gains, and even sufficient mojo to push the Dow Industrials higher for a bit. Boeing just hours ago fired its CEO, Dennis Muilenburg, and intends to replace him with current board chairman David Calhoun starting January 13. The move will also elevate board member Lawrence Kellner to the chairman slot, though as a non-executive, reports note.

A Sacrificial Lamb?

The move was largely welcomed by shareholders; shares of Boeing stock were up 2.5% ahead of the market opening, and though they've given back some of those gains as of this writing, they're still well up on the previous close. Further reports noted that Boeing's move was sufficient to add around 70 points to the Dow itself as a result, which is one big move.

A String of Problems

Boeing's problems have been well-known and widely-publicized for most of the year. The ongoing issues surrounding its 737 MAX 8 line have given investors plenty of pause in recent weeks. Just as recently as a week ago, we'd heard that the company was considering shutting down the whole product line, a move which might have dealt Boeing a massive blow and generated shockwaves throughout the industry, from suppliers to customers alike.

Boeing's air troubles were bad enough, but then Boeing demonstrated similar issues trying to conquer space. The Boeing Starliner capsule, which was supposed to dock with the International Space Station, found itself in entirely the wrong orbit. It ultimately returned safely to Earth, but not without generating a whole new problem for Boeing.

Serving as perhaps the silver lining to this dark cloud, reports suggested that the troubles were simple matters that got out of hand; a software glitch for the 737 MAX 8, and troubles with the mission clock for the Starliner.

A Set of Silver Linings?

In fact, reports suggest that there have been more than a few silver linings in Boeing's dark cloud to emerge already. Just over a month ago, Boeing announced that a deal between itself and Turkish carrier SunExpress was set to expand, which meant more 737 MAX 8 sales on the board. What's more, many of the company's current issues don't seem without fixes, and Boeing itself seems more than willing to put these fixes to work.

But How Does It All Add Up?

A look at the overall picture for Boeing might seem dismal at first. The company's been seen at the forefront of several disasters, and after completely missing the International Space Station, might even look downright incompetent to less-charitable viewpoints. It's made some further sales, and that's fantastic, but for most investors, the notion of making sales to a Turkish airline doesn't exactly inspire confidence.

However, there are key points to remember in all this. One, the issues may seem dramatic—plane crashes have a way of doing just that—but the causes behind them appear to be comparatively small and readily addressed. Boeing is most certainly willing and able to do that addressing, too, and that should give investors a note of hope.

The wild fluctuations of the stock price suggest that there's a lot going on under the surface at Boeing; after all, if it were just a string of disasters, the company would be riding a nice, linear ride down to the bottom, with maybe a few occasional bumps upward on some positive news. The sawtooth one-year chart, meanwhile, is anything but. All that up-and-down makes it clear that investors believe in Boeing, but have some clear—and justifiable—concerns.

Like we said just ahead of Halloween: hate the story but buy the stock. The drama of plane crashes and botched orbits is big news, but it's not the whole story. Consider the 737 MAX 8 itself; when it gets through all those hoops, it's going to be one spectacularly safe aircraft, vetted by a string of regulators. A few minor adjustments may give Boeing a presence in the private space race, a field that has already shown some significant possibility. Boeing's status as a dividend aristocrat certainly doesn't hurt.

These are not good times for Boeing. However, Boeing has demonstrated its willingness to make the necessary changes to improve the company and keep it going forward. Whether it's modifying a plane to suit regulatory demand or letting go of its CEO, Boeing clearly means to keep its hand in for the long haul.