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Travel Radar - Aviation News > News > Aviation > Aircraft > Boeing Declares Ortberg as the new CEO
AircraftAviationIncidents & Accidents

Boeing Declares Ortberg as the new CEO

Boeing has appointed veteran Robert "Kelly" Ortberg as its new CEO, replacing Dave Calhoun.

Fatima Zohra Grioua
Last updated: 31 July 2024 21:44
By Fatima Zohra Grioua 5 Min Read
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Kelly Ortberg, then CEO of Rockwell Collins, at the company's production facility in in Manchester, Iowa, in 2016. Boeing has tapped Ortberg to be its new CEO, effective next month
Kelly Ortberg, the new CEO of Boeing ©Daniel Acker
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Highlights
  • Boeing's setbacks led to significant losses.
  • Kelly Ortberg to lead Boeing
  • New CEO begins in role on Monday 5 August

Boeing has appointed veteran Robert “Kelly” Ortberg as its new CEO, replacing Dave Calhoun. Boeing has already announced in March that Dave Calhoun would step down this year. This change comes after Boeing reported a second-quarter loss of 1.4 billion dollars and a 15% drop in sales. This was largely due to increased scrutiny of safety issues with its airplanes. The company trusts that this new appointment from outside the company will help it bounce back. Following the announcement of the new CEO, Boeing’s stock rose.

The Boeing 777X test aircraft on the tarmac on February 13, 2022, at Changi Airport in Singapore.
The Boeing 777X test aircraft on the tarmac on February 13, 2022, at Changi Airport in Singapore. © Bryan van der Beek

Boeing’s setbacks led to significant losses.

The company has encountered a series of challenges in recent years, including hazardous incidents, which undoubtedly led to significant financial losses and a tarnished reputation. For instance, An Alaska Airlines 737 Max 9 flight suffered on January 5 2024  a door plug blowout just after taking off, causing the luggage of passengers to fall out with no human losses. On February 6, the National Transportation Safety Board conducted a preliminary investigation, which revealed that Boeing was responsible for missing four bolts securing the door.

On March 11, 2024, A LATAM Airlines Boeing 787 flight had a sharp drop in altitude. As a result, many passengers were injured due to a brusque fly to the ceiling. Later on, Boeing announced the CEO to resign and Stand Deal, the CEO of the Commercial airplane unit to retire.

Unfortunately, the most dangerous and deadly incidents were the 737 Max crashes in October 2018 and March 2019 which caused the death of 189 passengers on a Lion Air flight and 157 on an Ethiopian Airline flight. Boeing admitted it was because of a design flaw.

Boeing CEO Dave Calhoun leaves a January 25 meeting at the US Capitol in Washington, DC.
Boeing CEO Dave Calhoun leaves a January 25 meeting at the US Capitol in Washington, DC. © Graeme Sloan

Kelly Ortberg to Lead Boeing

Robert ” Kelly” Ortberg is a former CEO of supplier Rockwell Collins which is now part of RTX. He has an experience of more than thirty years in the aerospace field, starting from 1938 as an engineer to a CEO in 2013. This will be a major advantage for Boeing in this critical time.

The new CEO, who is starting his new position next Monday, expresses his will and excitement to guide Boeing into a better direction despite all the challenges and losses it has suffered :

“Boeing is known for being a leading company in the industry , and I’m committed to contribute with the more than 170,000 dedicated employees of the company to make it to the top with the security and quality it oughts to have.”

Ortberg will be occupied with solving numerous issues at Boeing, including the responsibility to restore its reputation and regain the trust of partners and customers. The most urgent problems include ongoing financial losses, increased regulatory scrutiny, supply chain challenges, eroded confidence from airline customers due to delays, cost overruns in the defense division, and strained labor negotiations with the potential for a strike next September.

Many analysts trust that the aerospace veteran will successfully manage the challenges and lead Boeing to a better position. Steven Mollenkops, chairman of Boeing assured the employees with his statement:

“Kelly is a seasoned leader highly regarded in the aerospace industry, known for his proven ability to build effective teams and manage complex engineering and manufacturing operations.”

Overall, Boeing naming Kelly Ortberg as their new CEO is certainly the first step for the company to thrive again, with stocks rising again and a mostly optimistic vision, it will quickly learn from past mistakes and improve.

What are your thoughts about Boeing? Do you see that Kelly Ortberg will indeed save the reputation? Let us know in the comments below!

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Fatima Zohra Grioua
By Fatima Zohra Grioua
Aviation Reporter - An Interpreting and Translation student, with a great passion for cultures, international communication and writing, Fatima always seek to gain more knowledge and experience in different professional fields, be it as an intern at a translation office, a hostess, an interpreter and a languages teacher. Fatima looks forward to sharing her experiences and multilingualism with readers of Travel Radar!
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