Boeing, the embattled aerospace giant, has appointed Robert ‘Kelly’ Ortberg, 64, as its new CEO, effective August 8, 2024, in a bid to navigate through a period of significant financial losses and ongoing safety concerns. Ortberg, a veteran of the aerospace industry with over 35 years of experience and former CEO of Rockwell Collins, will replace Dave Calhoun, who announced his retirement in March.The leadership change comes as Boeing grapples with a multitude of challenges. The company reported a staggering net loss of $1.44 billion in the second quarter of 2024, with revenue plummeting 15% to $16.87 billion. This financial downturn is attributed to falling commercial aircraft deliveries, which decreased by 34% to 175 units in the first half of 2024, and ongoing issues in its defense division.Boeing’s troubles stem from a series of safety incidents and quality control issues, most notably the January 2024 incident where a panel covering an emergency exit door detached from a Boeing 737 Max-9 during flight. This event led to increased scrutiny from the Federal Aviation Administration (FAA), which has limited Boeing’s production of 737 MAX jets to 38 per month, down from its planned 50.As Ortberg prepares to take the helm, he faces the daunting task of restoring trust in Boeing’s brand, improving quality control, and navigating regulatory challenges. Boeing Chairman Steven Mollenkopf expressed confidence in Ortberg’s appointment, stating, ‘He has the right skills and experience to lead Boeing in its next chapter’. However, the road ahead remains challenging, with Boeing still trying to persuade regulators to approve new models of the MAX and a larger version of its 777 jetliner.
Key points
- Boeing has appointed Robert ‘Kelly’ Ortberg as its new CEO, effective August 8, 2024, replacing Dave Calhoun.
- The company reported a net loss of $1.
- Boeing faces ongoing challenges including safety concerns, regulatory scrutiny, and production limitations for its 737 MAX aircraft.
- Ortberg, with over 35 years of aerospace experience, is tasked with restoring trust in Boeing’s brand and navigating regulatory challenges.
44 billion in Q2 2024, with revenue falling 15% to $16.
87 billion.
