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Boeing names Kelly Ortberg as new CEO amid ongoing recovery efforts

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Boeing names Kelly Ortberg as new CEO amid ongoing recovery efforts
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AVWeb | AVWeb

Boeing announced today it has named former Rockwell Collins executive Kelly Ortberg as its new president and CEO. The appointment follows a monthslong search to replace Dave Calhoun, who announced earlier this year he would step down by year-end. Board Chair Larry Kellner also stated he would not stand for reelection.

Both departures are linked to Boeing’s challenges following multiple high-profile issues related to transparency, quality control, and corporate culture.

Ortberg, assuming his role on August 8, must address financial losses and rebuild trust with the aerospace industry, the public, regulators in the U.S. and abroad, and investors. According to a Reuters report, Boeing aims to increase production of its single-aisle 737 line from 25 jets per month in June to 38 aircraft per month. Chief Financial Officer Brian West informed analysts that cash drain is expected to continue through the third quarter and annual spending will exceed projections.

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Ortberg’s appointment addresses two critical concerns for many Boeing critics: he is a mechanical engineer with three decades of aerospace experience—including five years leading avionics giant Rockwell Collins—and plans to establish his office in Seattle. Critics have accused Boeing of focusing excessively on financials at the expense of engineering over the past two decades. The relocation of corporate headquarters from Washington State 23 years ago was seen as a shift away from its engineering roots.

Despite concerns about Ortberg’s age (64), financial analysts view his reputation positively. Analyst Ken Herbert of RBC Capital Markets described the appointment as “a strong and safe pick” in a Reuters story. The news led to a 1.4% rise in Boeing stock today despite reports of $1.4 billion in second-quarter losses.

Commenting on his hiring, Ortberg said, “Boeing has a tremendous and rich history as a leader and pioneer in our industry, and I’m committed to working together with the more than 170,000 dedicated employees of the company to continue that tradition, with safety and quality at the forefront. There is much work to be done, and I’m looking forward to getting started.”

Organizations Included in this History
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