Boeing’s board of directors announced the appointment of former Rockwell Collins CEO Robert “Kelly” Ortberg as the company’s new CEO, replacing outgoing CEO David Calhoun. Analysts and aerospace consultants praised Ortberg for his experience in engineering and manufacturing, as well as his success in growing Rockwell Collins into a dominant avionics supplier. Ortberg’s focus on technology development and positive corporate culture at Rockwell were highlighted as key strengths that he will bring to Boeing.
Ortberg’s deep background with parts makers is seen as a valuable asset for Boeing as it struggles to meet production demands and improve relations with suppliers. His appointment over Stephanie Pope and Pat Shanahan is expected to help address issues with workforce treatment and supply chain management. Ortberg’s focus on technology development, particularly in creating a connected aircraft, is expected to benefit Boeing as it navigates challenges in its production processes.
One of Ortberg’s first challenges will be contract negotiations with the union representing Boeing’s machinists and assembly workers in Washington State. Boeing workers remain unhappy over previous negotiations, including the end of their pension plans, and tensions are high as the union has authorized a strike vote. Analysts speculate on how Ortberg will handle the negotiations and if he will seek to avoid a high-profile strike early in his tenure.
Boeing faces numerous issues, including production slowdowns for the 737 MAX, ongoing legal matters related to the 2018 and 2019 crashes, and financial losses. Ortberg’s appointment is seen as a potential step towards addressing these challenges and turning the company around. Investors reacted positively to the news of Ortberg’s appointment, with Boeing shares trading up following the announcement.
Overall, Ortberg’s experience in engineering, manufacturing, and building successful corporate cultures is expected to be a valuable asset for Boeing as it works to address its numerous challenges and rebuild its reputation. With his leadership, the company hopes to regain confidence from investors, customers, and employees, and steer the company towards profitability and success in the future.
