Boeing has announced that Kelly Ortberg, former CEO of Rockwell Collins, will be taking over as the aerospace giant’s president and CEO, ushering in a new chapter for the company. Ortberg, a 64-year-old aerospace executive, will be based in Seattle, suggesting a potential move of Boeing’s headquarters back to the city where it was founded. He is set to take over on August 8, following a challenging period for Boeing that included the grounding of the 737 MAX jets and the subsequent firing of the former CEO Dennis Muilenburg.
Despite the 737 MAX jets being back in service, current CEO David Calhoun’s efforts have not been successful in fully repairing Boeing’s image. Recent incidents such as a door plug flying off an Alaska Airlines 737 MAX in flight have added to the company’s woes. Boeing reported a loss of $1.4 billion for the second quarter, bringing total losses to more than $25 billion since the start of 2019. Ortberg’s appointment is seen as a means of leading Boeing through this consequential period in its history and addressing the various challenges faced by the company.
Ortberg brings a wealth of experience to the role, having started his aerospace career at Texas Instruments in 1983 and worked his way up the ranks at Rockwell Collins. He became CEO and president of the company in 2013, overseeing its integration with United Technologies and eventually RTX before retiring in 2021. Despite reaching the age of 65, Boeing has waived its mandatory retirement policy for Ortberg, highlighting the confidence the company has in his abilities to lead.
Analysts have reacted positively to Ortberg’s appointment, with JP Morgan and RBC both expressing optimism about his leadership potential. However, Ortberg may soon face a major test as the Machinists union at Boeing has indicated that it will strike if a new contract is not reached by September 12, when the current contract expires. Ortberg’s leadership will be put to the test in navigating this potentially challenging situation and ensuring a positive outcome for all parties involved.
In a news release announcing the selection of Ortberg as CEO, Boeing board chairman Steven Mollenkopf praised his skills and experience, stating that Ortberg is deeply respected in the aerospace industry and has a track record of leading complex engineering and manufacturing companies. Ortberg himself expressed his gratitude for the opportunity to join Boeing, acknowledging the work that lies ahead and expressing his eagerness to get started. As Boeing looks to overcome its recent challenges and move forward, Ortberg’s leadership will be crucial in guiding the company into its next chapter.
Overall, the appointment of Kelly Ortberg as Boeing’s president and CEO represents a significant development for the company as it seeks to recover from past setbacks and chart a new course for the future. With his extensive experience in the aerospace industry and proven track record of leadership, Ortberg is poised to lead Boeing through the challenges ahead and work towards rebuilding the company’s reputation. As he takes on this new role, all eyes will be on Ortberg to see how he navigates the various obstacles facing Boeing and helps steer the company towards a successful future.
