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Former Rockwell Collins CEO Kelly Ortberg has been chosen to become Boeing’s president and CEO. (Credit: Univ. of Iowa Center for Advancement via YouTube)
Opening up a new chapter in its century-long history, Boeing says its next CEO and president will be Kelly Ortberg, a 64-year-old aerospace executive who previously held the CEO post at Rockwell Collins, now a subsidiary of RTX.
Citing an unidentified source, The Seattle Times reported that Ortberg will be based in Seattle, the city where Boeing was founded. That suggests there’s a chance that Boeing’s headquarters will move back to Seattle — 23 years after the base of operations was moved to Chicago, and two years after it was moved again to Arlington, Va.
Ortberg will take the helm on Aug. 8 after a trying five years for the aerospace giant. Fatal crashes of Boeing’s 737 MAX jets in 2018 and 2019 led to a worldwide grounding of the plane, and eventually to the firing of then-CEO Dennis Muilenburg. His successor, David Calhoun, was charged not only with getting the MAX back in service, but also with repairing Boeing’s tarnished image and weathering a new set of supply-chain challenges brought on by the COVID-19 pandemic.
Although the 737 MAX is flying again, Calhoun’s efforts fell short. A fresh controversy arose this January when a door plug flew off an Alaska Airlines 737 MAX in flight. In May, Calhoun announced his intent to retire. Today Boeing posted a loss of $1.4 billion for the second quarter, compared with a loss of $149 million a year earlier. Boeing’s losses have added up to more than $25 billion since the start of 2019.
In a news release announcing the selection of a new CEO, Boeing board chairman Steven Mollenkopf said Ortberg “has the right skills and experience to lead Boeing in its next chapter.”
“Kelly is an experienced leader who is deeply respected in the aerospace industry, with a well-earned reputation for building strong teams and running complex engineering and manufacturing companies,” Mollenkopf said. “We look forward to working with him as he leads Boeing through this consequential period in its long history.”
Ortberg said he was “extremely honored and humbled” to join Boeing. “There is much work to be done, and I’m looking forward to getting started,” he said.
Ortberg started his aerospace career in 1983 as an engineer at Texas Instruments, and worked his way up the leadership ladder at Rockwell Collins starting in 1987. He became Rockwell Collins’ CEO and president in 2013, guiding the company through its integration with United Technologies and RTX until his retirement in 2021.
Boeing said it would waive its requirement for mandatory retirement at age 65 in Ortberg’s case. Calhoun is expected to serve as a special adviser to Boeing’s board of directors until next March.
Initial reaction to the corporate change-over was positive, based on a roundup of analysts’ reactions posted by Leeham News: JP Morgan called Ortberg a “credible leader with good potential,” while RBC called the choice “a strong and safe pick.”
It may not be long before Ortberg faces a major test: Two weeks ago, Boeing’s Machinists union overwhelmingly approved a plan to strike if a new contract isn’t reached. The current contract expires Sept. 12.
Update: Sen. Maria Cantwell, D-Wash., likes the idea of bringing Boeing’s HQ back to Seattle. “The notion that somebody thinks they can run the company from anywhere other than Seattle is a big mistake,” Cantwell was quoted as saying in a posting to the X social-media platform.
“It’s a good first step that the CEO will be based in Seattle, and now the rest of the headquarters needs to move back home to rejoin our world-class aviation workforce,” Cantwell, who chairs the Senate Commerce, Science and Transportation Committee, said in a follow-up posting. “When it comes to quality and safety, being close to the workforce on the ground matters.”
