Breaking: Scott Carson retiring from Boeing on 12/31/09, James Albaugh to take over BCA

As I reported on this blog last week I heard rumors that Scott Carson may retire from Boeing. Well the rumors were correct and Boeing announced Carson's retirement effective at the end of this year. Boeing IDS (Integrated Defense Systems) Head James Albaugh will take over Scott Carson's role as head of BCA effective September 1, 2009. Dennis Muilenburg will take over Jim Albaugh's role as head of IDS also effective as of September 1, 2009

Given the delays to the 787 program this is not much of a surprise and it may not be the last reshuffling of BCA management. I expect more turnover both within BCA and the 787 program. However, much of this probably won't happen until after the 747-8 and the 787 both have started their test flight programs.

Read Boeing's announcement below:

Boeing Executive Scott Carson Announces Retirement; Albaugh Named Commercial Airplanes Leader, Muilenburg to Head Integrated Defense Systems

CHICAGO, Aug. 31 /PRNewswire-FirstCall/ -- Boeing Commercial Airplanes President and CEO Scott Carson announced today that he will retire from the company at the end of the year.

Boeing Chairman, President and CEO Jim McNerney has named Jim Albaugh, 59, to Carson's leadership role at Boeing Commercial Airplanes (BCA), and Dennis Muilenburg, 45, to succeed Albaugh as president and CEO of Boeing Integrated Defense Systems (IDS). Both appointments are effective Sept. 1.

Carson, 63, has led BCA since 2006 after two years heading up the unit's sales organization, where he was credited with reinvigorating sales of Boeing commercial airplanes and related services to airline customers and leasing companies around the world. He previously served as BCA's executive vice president and chief financial officer, where he led the finance and business strategy organizations, as well as information systems and services. He also held leadership positions in the company's defense business and was the first president of Connexion by Boeing.

"The Boeing board of directors and I appreciate Scott's long record of accomplishment across many disciplines, functions and businesses, and the enduring contributions he has made to Boeing through 38 years of service," said McNerney. "Thanks to his leadership and operational experience, Boeing Commercial Airplanes has performed extremely well in a tough business environment and remains positioned solidly for continued market success."

McNerney said that Carson and Albaugh will work together to ensure a smooth transition of customer and other business relationships, and that Carson will also assist on special projects for the company through year end. He will continue to lead the United Way of King County's 2009-2010 fund-raising campaign, even after his retirement.

Albaugh, a 34-year company veteran with extensive experience in development programs and manufacturing, has led Boeing's defense, space and associated services businesses since 2002. Under his leadership IDS revenue has grown from $25 billion to an expected $34 billion in 2009, and now accounts for roughly half of Boeing's annual sales. Prior to his most recent assignment, he led Boeing's growth in space and communications, including network-centric operations, global missile defense, combat systems, and system-of-systems technologies. He began his career with Rockwell's aerospace and defense businesses, which Boeing acquired in 1996.

"Jim is a seasoned and effective aerospace executive with substantial experience leading and integrating technically complex businesses and programs from initial development through full production and delivery. His program management and engineering focus will help ensure the success of BCA's key development and production programs," McNerney said. "On top of that, as a Washington state native and the leader of more than 9,000 IDS employees working in the Puget Sound region, he is familiar with the people, issues and programs in the area. He is the ideal leader for BCA at this time," he added.

Muilenburg moves to his new position from Integrated Defense System's Global Services & Support unit, where he served as president of the $8 billion business that provides global after-delivery support for military platforms and systems, as well as a broad array of defense and government services. Prior assignments include leadership of the Combat Systems Division and Future Combat Systems, the company's development program for the U.S. Army. He also led the overall engineering development of Boeing's program to modernize global air traffic management systems.

"Dennis is ready to step up and lead the IDS team," said McNerney. "His experience in technology integration; track record delivering large-scale programs on time and budget; and work with customers in new, developing markets will help us generate new momentum and long-term growth," he added.

Albaugh holds bachelor's degrees in mathematics and physics from Willamette University, and a master's degree in civil engineering from Columbia University. He will relocate soon to the Seattle area.

Born in Iowa, Muilenburg earned a bachelor's degree in aerospace engineering from Iowa State University and a master's degree in aeronautics and astronautics from the University of Washington. He will continue to be based in St. Louis and spend substantial time in the Washington, D.C. area.

A replacement for Muilenburg will be named at a later date.