Boeing Names Robert K. "Kelly" Ortberg as New CEO to Restore Trust and Stability
Effective August 8, 2024, Robert "Kelly" Ortberg will assume the role of President and Chief Executive Officer of Boeing, joining the Board of Directors. Ortberg, a seasoned aerospace veteran with over three decades of experience, previously led commercial and defense supplier Rockwell Collins. His primary mission: restore Boeing’s tarnished reputation.
Ortberg’s immediate task is to address persistent production issues, regain the trust of regulators, and stabilize financial performance. Boeing’s cash burn hit $8 billion this year, and shares plummeted 37%. His first day as CEO took him to Boeing’s Renton, Washington factory, home of the 737 Max, where he plans to engage with employees and review safety protocols.
The company’s troubled history, including two fatal 737 Max crashes and a recent door plug blowout investigation by the NTSB, underscores the urgency of his mission. Ortberg vows transparency and regular updates to staff as he navigates these challenges.
The aerospace giant faces hurdles across its commercial and defense units. Delayed certifications for new models and setbacks with the 747 Air Force One aircraft and the Starliner capsule complicate matters further.
Ortberg’s leadership comes amid a broader executive shake-up, succeeding Dave Calhoun, who stepped down following another quarterly loss. The company’s move to Arlington, Virginia, notwithstanding, Ortberg will operate from Seattle, close to Boeing’s main production facilities.
Industry analysts are cautiously optimistic, emphasizing Ortberg’s listening skills and engineering background as assets. Union negotiations also loom large, with significant wage demands from Boeing factory workers.
The first 100 days of Ortberg’s tenure are seen as crucial, with Bank of America’s Ron Epstein warning of generational impacts from early decisions.
Southwest Airlines CEO Bob Jordan expressed support for Ortberg’s mission to restore Boeing’s standing, emphasizing its importance for the airline industry as a whole.
Ortberg’s leadership will be pivotal in navigating Boeing through this turbulent period and rebuilding trust with stakeholders.
— CNBC contributed to this report.
Original Story https://www.cnbc.com/2024/08/08/new-boeing-ceo-kelly-ortberg.html
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