Boeing on Monday replaced its embattled Chief Executive Dennis Muilenburg and named Chairman David Calhoun as his successor, saying a change was needed as the company attempts to restore its reputation amid the protracted 737 MAX crisis.

According to the company, David Calhoun will serve as CEO and president, effective January 13.

"The 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," said Boeing.

Unlike Muilenburg, Calhoun is not an engineer but is no stranger to crises nor to aviation.

After graduating from Virginia Tech in 1979, he started his career at General Electric and later was in charge of the aircraft engine business in the aftermath of the September 11, 2001, terrorist attacks.

During his 26 years at G.E., Calhoun also ran other business units including transportation, insurance and lighting.

He then joined Nielsen in 2006. During his 10-year tenure, he built Nielsen into a leading data analytics and measurement firm listed on the New York Stock Exchange and Standard & Poor's 500 Index.

He has been senior managing director at the private equity firm Blackstone Group since January 2014, overseeing portfolio operations at the private equity giant.

Calhoun was on Boeing's board since 2009, including as the 737 Max was under development. He became chairman in October when the board voted to separate the roles of chairman and CEO.

"Putting in place a world-class leader like Dave at the helm of Boeing is good for the company and important to the country. His experience driving growth across Blackstone's diverse portfolio speaks to his unusual capabilities as a CEO, which will serve him well in this complex situation," said Blackstone CEO Steve Schwarzman in a statement.

"There's really only one thing to do, and that's to get a safe airplane back up in the sky and let it fly," Calhoun stressed in an interview with The Times in May. "By the way, that will all happen."

The company's shares closed about 2.91 percent up on Monday.

(With input from Reuters)

Read more: Boeing splits CEO, chairman role amid MAX crisis