Troubled Boeing Appoints Aerospace Veteran Kelly Ortberg as New CEO

Boeing Appoints New CEO Amidst Troubles

Boeing, the troubled aircraft manufacturing company, has announced the appointment of Robert K "Kelly" Ortberg, a veteran in the aerospace industry, as its new Chief Executive Officer. Ortberg is a long-serving leader at aircraft electronics supplier Rockwell Collins, and is expected to assume the Boeing leadership role next month.

Ortberg will replace Dave Calhoun, who had announced earlier plans to step down this spring. The leadership transition occurs amidst wide criticism against Boeing's manufacturing and safety record, sparked by an in-flight incident involving a new plane flown by Alaska Airlines.

Boeing's Seeking Financial Recovery

Boeing, facing regulatory scrutiny and financial woes following fatal crashes of its 737 Max planes, is desperate for a turnaround in its fortunes. The company pleaded guilty to a fraud charge related to these accidents, agreeing to a near $244m fine. It continues to wrestle with lawsuits and governmental investigations, on top of spiralling financial losses.

In the recent quarter ending June, Boeing reported a loss of $1.4 billion, significantly higher than the previous year's $150m loss. Causes for such a steep decline include increased production costs and a downturn in the defense business due to the surge in prices in recent years.

Ortberg's Focus for Boeing

Ortberg, known for leading key industry suppliers through several mergers before his retirement in 2021, steps into Boeing's leadership role with wide respect and a reputation for successfully managing complex engineering and manufacturing companies. In his new role leading a global workforce of more than 170,000, Ortberg pledges to prioritize safety and quality, acknowledging the significant work to be done to help Boeing recover.

Ortberg's past experience included a stint as CEO at Rockwell Collins, a position that occasionally brought him into conflict with Boeing due to competing interests. Despite this, he has been lauded as a seasoned operator keenly aware of the challenges ahead.