Boeing has announced the appointment of Kelly Ortberg as its new chief executive, succeeding Dave Calhoun who was removed from the position in March due to the crisis surrounding the 737 MAX jet. After a thorough and extensive search process, the board selected Ortberg for his extensive experience and qualifications in the aerospace industry.
Ortberg, 64, brings with him more than three decades of experience in the industry, having spent most of his career at Rockwell Collins, a provider of avionics and information technology systems to aircraft manufacturers. He holds a degree in mechanical engineering from the University of Iowa and served as the chief executive of Rockwell Collins from 2013 until it was acquired by United Technologies in 2017. Following the merger, Ortberg joined the board of the newly formed company, RTX.
According to Boeing’s chairman, Steven Mollenkopf, Ortberg’s strong leadership skills and experience in running complex engineering and manufacturing companies make him the ideal candidate to lead the company into its next chapter. Mollenkopf also highlighted Ortberg’s reputation for building strong teams, which will be crucial in addressing the challenges facing Boeing.
One of the challenges that Ortberg will have to address is the company’s recent financial performance. Boeing reported a loss of $1.44 billion for the second quarter of 2021, worse than expected, with sales down by 15%. The company’s defense division also reported a loss of $913 million, with several projects suffering from cost overruns.
Despite these challenges, Wall Street has welcomed the news of Ortberg’s appointment, with Boeing’s shares rising by almost 2.5% after the announcement. Analysts believe that Ortberg’s reputation and experience make him a strong and safe pick for the role.
Ortberg’s age, however, has raised some concerns as he is 64, and Boeing had to waive its company retirement age of 65 to appoint him. Some investors were also hoping for an outsider to bring a fresh perspective to the company, which is currently facing multiple issues.
Ortberg’s immediate priorities will likely be addressing the concerns of Boeing’s customers, many of whom have been impacted by the 737 MAX jet crisis, and improving the company’s relationship with the Federal Aviation Administration. He is expected to bring a listening approach to the workforce and suppliers, which will be crucial in rebuilding trust and improving the company’s performance.
Boeing’s stakeholders, including customers like Ryanair, will be closely watching Ortberg as he takes on his new role. With his extensive experience and strong reputation in the aerospace industry, many are hopeful that he will be able to steer the company in the right direction and address its current challenges.
