On Wednesday, Boeing Company announced the appointment of a new CEO. This news came after the company reported a core operating loss of $1.4 billion in the second quarter, more than triple the loss from the same period last year.
Boeing stated that Kelly Ortberg, a veteran in the aviation industry and former CEO of Rockwell Collins, will take on the role of President and CEO of Boeing starting from August 8.
At 64 years old, Ortberg will be tasked with turning around Boeing’s challenging situation, which includes restoring aircraft production and rebuilding trust in Boeing from regulatory agencies, the industry, and the general public.
Ortberg, who has an engineering background rather than a financial one, holds a degree in mechanical engineering.
“I feel extremely honored and humbled to be able to join this iconic company. Boeing, as a leader and pioneer in the industry, has a brilliant and rich history. I am committed to continuing this tradition with over 170,000 dedicated employees, prioritizing safety and quality,” Ortberg said in a statement.
He noted that there is much work to be done at Boeing. His background may encourage employees who have criticized Boeing’s management for focusing too much on finances rather than engineering quality.
Boeing and Airbus dominate the global civil aviation aircraft manufacturing sector. Boeing has faced a series of issues with its aircraft this year, which have been quite unbelievable. Particularly on January 5, a door seal of a Boeing aircraft in the cabin of an Alaska Airlines plane ruptured and fell off shortly after takeoff, leading to strict scrutiny by regulatory agencies on Boeing aircraft. The Federal Aviation Administration (FAA) has prohibited Boeing from expanding production of the 737 MAX jet series, with no indication of how long this restriction will last. This has significantly impacted the profits of this American aircraft manufacturing giant.
Boeing and several airlines had anticipated a reduction in aircraft deliveries due to the intensive investigation by the FAA into Boeing’s manufacturing processes, potentially decreasing the number of available aircraft for Americans and cutting back on all the economic benefits that Boeing typically provides.
According to analysts at Jefferies, during Ortberg’s tenure at Collins, he was deeply loved by employees and direct subordinates.
Jefferies stated that Ortberg is a “tough negotiator” who can deal with various clients and suppliers.
(This article references reports from CNN and Reuters)