Boeing recently reported a core operating loss of $1.4 billion in the second quarter, more than triple the loss from the previous year. Increased scrutiny of the safety and quality of its planes has prevented the troubled company from making enough aircraft to return to profitability. In response to these challenges, Boeing has named Robert “Kelly” Ortberg, former CEO of supplier Rockwell Collins, as its new CEO effective August 8, replacing retiring CEO Dave Calhoun. Ortberg, an engineer with a background in mechanical engineering, expressed his commitment to working with Boeing’s employees to prioritize safety and quality.
Ortberg’s engineering background may be seen as a positive sign by some employees who have criticized Boeing’s management for focusing too much on finance rather than engineering quality. However, the appointment of Ortberg does not guarantee that the right decisions will be made by the company’s new leadership. Calhoun, with a financial background, was criticized for the company’s problems, while his predecessor Muilenburg, an engineer, faced challenges during the troubled development of the 737 Max jet and the subsequent fatal crashes that led to significant financial losses for Boeing.
Having started his career in the aviation industry in 1983 as an engineer at Texas Instruments, Ortberg brings decades of experience to his new role. He joined Rockwell Collins in 1987 as a program manager and became CEO in 2013 before retiring from the company in 2021. Boeing Chairman Steven Mollenkopf praised Ortberg as an experienced leader with a strong reputation in the aerospace industry for building teams and running complex engineering and manufacturing companies. The company is looking forward to working with Ortberg as he navigates Boeing through this critical period in its history.
Ortberg’s appointment comes at a crucial time for Boeing, as the company faces ongoing challenges related to the safety and quality of its aircraft. With a focus on safety and quality at the forefront, Ortberg aims to work closely with Boeing’s employees to uphold the company’s legacy as a leader and pioneer in the industry. While there is much work to be done to address Boeing’s current issues, Ortberg’s experience and leadership skills may provide a fresh perspective to guide the company through this consequential period.
As this story continues to develop, updates on Boeing’s progress under Ortberg’s leadership will likely provide insight into the company’s efforts to address its financial losses and restore trust in the safety and quality of its aircraft. With Ortberg at the helm, Boeing looks to navigate through these challenges while maintaining its position as a prominent player in the aerospace industry. The industry will be watching closely to see how Ortberg’s leadership will impact Boeing’s future direction and success in the coming years.
