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Boeing named a new CEO after it reported a core operating loss of $1.4 billion in the second quarter – more than triple the loss from a year ago – as increased scrutiny of the safety and quality of its planes kept the troubled company from making enough aircraft to return to profitability.
Boeing announced Robert “Kelly” Ortberg, the former CEO of supplier Rockwell Collins, will be its new CEO, effective August 8, replacing retiring Boeing CEO Dave Calhoun, who has been under fire for the company’s problems. Ortberg has a background as an engineer, not in finance, having earned his college degree in mechanical engineering.
“I’m extremely honored and humbled to join this iconic company,” said Ortberg in a statement from the company. “Boeing has a tremendous and rich history as a leader and pioneer in our industry, and I’m committed to working together with the more than 170,000 dedicated employees of the company to continue that tradition, with safety and quality at the forefront.”
Ortberg, who noted “there is much work to be done” at Boeing, has a background that could be encouraging to some staff who have criticized Boeing’s management for having too much of a emphasis on finance rather than the engineering quality.
But Ortberg’s appointment doesn’t necessarily guarantee the right decisions will be made by the company’s new leadership. While Calhoun’s background is in finance, his predecessor, Dennis Muilenburg, the CEO of Boeing at the time of the development of the troubled 737 Max jet and the two fatal crashes of the plane that led to its 20-month grounding and five years of financial losses, also had an engineering background.
Ortberg started work in the aviation industry in 1983 as an engineer at Texas Instruments, and then joined Rockwell Collins in 1987 as a program manager. He became CEO of Rockwell Collins in 2013, and retired from the company in 2021.
“Kelly is an experienced leader who is deeply respected in the aerospace industry, with a well-earned reputation for building strong teams and running complex engineering and manufacturing companies,” said Boeing Chairman Steven Mollenkopf in a statement. “We look forward to working with him as he leads Boeing through this consequential period in its long history.”
Rockwell Collins provides avionics, the electrical systems used on aircraft, and information technology used in the aerospace industry. It was purchased by United Technologies in 2018 and now operates as Collins Aerospace. Ortberg stayed with the company for three years as it was integrated into United Technologies, and then he retired.
He will have his hands full fixing the problems at Boeing, which has not posted a profitable year since 2019. Since then, its core operating losses totaled $33.3 billion, including the loss announced Wednesday. Boeing will have difficulty returning to profitability until it can convince regulators that it has fixed problems with the safety and quality of its jets.
– This is a developing story, it will be updated.
