Boeing has appointed Robert "Kelly" Ortberg as its new CEO, effective August 8th. Ortberg, a seasoned aerospace industry veteran, will replace Dave Calhoun, who is stepping down at the end of the year.
Ortberg, 64, brings a wealth of experience to the role. He previously served as CEO of Rockwell Collins, a major aerospace supplier, which subsequently became Collins Aerospace and is now part of RTX. He retired from the company in 2021. Ortberg holds a mechanical engineering degree and will face a multitude of challenges as Boeing's new leader, including persistent losses, heightened regulatory scrutiny, and strained relationships with airline customers due to delayed aircraft deliveries. Additionally, tense labour negotiations, which have recently included the threat of a strike, will be a major focus.
His appointment was announced alongside Boeing's second-quarter results, which showed a wider-than-expected loss and a 15% decline in sales. The company's financial performance has been impacted by a series of crises, including the grounding of the 737 Max aircraft following two fatal crashes.
Calhoun's departure was announced in March as part of a broader company shakeup that included the resignation of the chairman and the replacement of the head of commercial aircraft. The changes were prompted by a recent incident where a door plug on a nearly new 737 Max 9 aircraft blew out, reigniting federal scrutiny of Boeing's safety standards.
Boeing Chairman Steven Mollenkopf stated in a note to employees that Ortberg's appointment followed a thorough search process and that he possesses the necessary skills and experience to lead Boeing through its next chapter. He praised Ortberg's reputation as an experienced leader, deeply respected within the aerospace industry, known for building strong teams and managing complex engineering and manufacturing companies.
Ortberg will also assume a position on Boeing's board of directors.