Boeing Appoints Aerospace Veteran Robert ‘Kelly’ Ortberg as New CEO
Mr. Ortberg, 64, played a key role in leading aviation communications and electronics supplier Rockwell Collins and overseeing its integration into United Technologies. United Technologies later merged with Raytheon to form RTX. He retired from RTX in 2021.
Boeing announced on Wednesday that it has appointed former aerospace veteran Robert “Kelly” Ortberg as its next CEO, following the company’s report of a substantial loss due to ongoing operational issues.
Ortberg, 64, previously played a significant role in leading aviation communications and electronics supplier Rockwell Collins and overseeing its integration into United Technologies, which subsequently merged with Raytheon to form RTX. He retired from RTX in 2021.
An engineer by background, Ortberg is considered an outsider to Boeing, meeting key CEO requirements valued by some aviation insiders.
Boeing has announced the appointment of former aerospace veteran Robert “Kelly” Ortberg as its new CEO, effective August 8. Ortberg, 64, brings a wealth of experience from his leadership role at Rockwell Collins, which was integrated into United Technologies before merging with Raytheon to form RTX. His appointment comes as Boeing seeks to recover from a series of safety and quality control issues that have intensified scrutiny on the company.
Boeing’s second-quarter results, released Wednesday, highlight ongoing challenges, including a substantial loss of $1.4 billion compared to a $149 million loss in the same period last year. Revenue also fell by 14.6 percent to $16.9 billion. The company’s commercial division continues to struggle with production delays and upgrades to safety and quality control practices. Additionally, Boeing’s defense sector has faced significant losses from fixed-price contracts, exacerbated by supply chain issues and higher engineering costs.
– Leadership shake-up –
Boeing’s difficulties have been under the spotlight since a January incident involving a 737 MAX operated by Alaska Airlines, which made an emergency landing due to a fuselage panel failure. This incident reignited concerns about the 737 MAX following two fatal crashes in 2018 and 2019, leading to a prolonged grounding of the aircraft.
Outgoing CEO Dave Calhoun, who took over in January 2020 after Dennis Muilenburg’s departure amid the MAX crisis, announced in March that he would step down by the end of the year. Although there were hopes for a new CEO with aerospace expertise and a strong safety focus, Calhoun has indicated that Ortberg’s appointment does not signal a major leadership overhaul.
– ‘Very challenging job’
Ortberg faces immediate challenges, including potential negotiations with a machinists’ and aerospace union amidst a looming strike threat and efforts to restore production levels of the MAX and 787 Dreamliner. Analysts have praised Ortberg’s appointment, noting his operational and engineering experience as key assets for Boeing’s recovery. However, they also caution that the role remains highly challenging.
Ortberg will assume his new role shortly before a two-day National Transportation Safety Board hearing on the Alaska Airlines incident. Boeing is also preparing to plead guilty to a fraud charge related to the MAX crashes as part of a plea deal with the US Department of Justice, pending federal judge approval.
Shares of Boeing saw a 3.0 percent increase near midday following the announcement of Robert “Kelly” Ortberg’s appointment as CEO. This uptick reflects investor optimism about the potential positive impact of Ortberg’s extensive aerospace experience and his capability to address Boeing’s ongoing challenges.
