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Boeing has appointed Robert K. “Kelly” Ortberg as its new President and CEO. Ortberg, a seasoned aerospace executive with a successful track record at Rockwell Collins, takes the helm as Boeing navigates a complex landscape of legal, regulatory, and production challenges. He will also join Boeing’s Board of Directors.
According to the company’s press release, Ortberg will succeed Dave Calhoun, who earlier this year announced his intention to retire. Calhoun has served as president and CEO since January 2020 and as a member of Boeing’s Board of Directors since 2009.
Steven Mollenkopf, Chair of the Board, said, “The Board conducted a thorough and extensive search process over the last several months to select the next CEO of Boeing, and Kelly has the right skills and experience to lead Boeing in its next chapter.”
He added, “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. We look forward to working with him as he leads Boeing through this consequential period in its long history.”
“The Board would also like to thank Dave Calhoun for his strong leadership at Boeing, first as Chair and then as CEO, when he stepped in to steer the company through the challenges of recent years,” added Mollenkopf.
Respected Industry Veteran with More Than 35 Years of Aerospace Experience
Ortberg expressed his honours and gratitude for being a part of the iconic company. He also mentioned that he is committed to working together with more than 170,000 dedicated employees 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.”
Ortberg, 64, brings over 35 years of aerospace leadership to this position. His journey began in 1983 as an engineer at Texas Instruments, and he joined Rockwell Collins in 1987 as a program manager. He held increasingly important leadership positions at the company prior to becoming its president and CEO in 2013, a testament to his extensive experience and capability in the aerospace industry.
After five years leading Rockwell Collins, he steered the company’s integration with United Technologies and RTX until he retired from RTX in 2021. He has held several significant leadership posts in the industry, including serving on the Board of Directors of RTX. In addition, he serves on the Board of Directors of Aptiv PLC, a global technology company and an industry leader in vehicle systems architecture. Ortberg, who holds a bachelor’s degree in mechanical engineering from the University of Iowa, is the former Chair of the Aerospace Industries Association (AIA) Board of Governors.
Boeing’s New CEO Inherits a Company in Crisis
Ortberg takes the helm at Boeing at a critical juncture as the company grapples with a perfect storm of challenges. The aerospace giant reported a staggering US$1.4 billion core operating loss in the second quarter, more than triple the previous year’s figure. In addition, increased scrutiny of the safety and quality of its planes kept the company from making enough aircraft to return to profitability.
Legal troubles compound these financial woes. Earlier this month, Boeing pleaded guilty to criminal fraud charges stemming from the deadly 737 MAX crashes. The company is facing intense pressure to restore public trust and regain regulatory approval while also addressing significant financial losses.
According to CNN, “Ortberg will have his hands full fixing the problems at Boeing, which has not posted a profitable year since 2019. Since then, its core operating losses totalled US$33.3 billion, including the loss announced Wednesday. That loss was far larger than forecast by analysts. Boeing will have difficulty returning to profitability until it can convince regulators that it has fixed problems with the safety and quality of its jets.”
The Guardian reported that the company’s latest crisis began in January when a door plug blew off a brand-new 737 Max 9 shortly after it took off from Portland, Oregon, forcing an Alaska Airlines crew to conduct an emergency landing. Thus, it raised questions about Boeing’s production processes and led to a marked drop in manufacturing of its bestselling Max jets.
Ortberg’s appointment marks a pivotal moment for Boeing. As he assumes the role of CEO, he inherits a company facing unprecedented challenges. To restore Boeing’s reputation and financial health, Ortberg must navigate a complex landscape of legal, regulatory, and operational hurdles. His success in turning the company around will depend on his ability to swiftly address safety concerns, rebuild trust with regulators and the public, and implement strategies to improve profitability.
