Boeing Appoints Robert K. Ortberg as New CEO Amid Crisis

Boeing Appoints Robert K. Ortberg as New CEO Amidst Ongoing Challenges

Boeing’s board of directors announced on Wednesday the appointment of Robert K. Ortberg, a seasoned professional in the aerospace sector, as the company’s next chief executive officer. This decision comes as Boeing navigates the aftermath of a crisis triggered by a panel detaching from a 737 Max aircraft in January.

Mr. Ortberg, who is commonly referred to as Kelly, will face an array of formidable challenges as he steps into his new role, effective August 8. His responsibilities will include spearheading significant cultural shifts within the organization, finalizing the acquisition of a key supplier, reinforcing Boeing’s supply chain to support increased production, and leading the development of the next generation of aircraft.

At 64 years old, Mr. Ortberg brings a wealth of experience and a fresh perspective as he takes on this pivotal position. He previously served as chief executive of Rockwell Collins, a company renowned for its electronic systems and technology tailored for aircraft, including those manufactured by Boeing. There had been speculation surrounding several potential candidates for the CEO role, but Mr. Ortberg emerged as a strong contender following a report by The Air Current that highlighted his candidacy.

Mr. Ortberg’s journey in the aerospace industry began in 1983 at Texas Instruments. He joined Rockwell in 1987, where he swiftly advanced through various roles, overseeing crucial development programs for prominent aircraft such as the Boeing 787 and the Airbus A350. He ascended to the position of chief executive in 2013 and led the company until its acquisition by United Technologies in late 2018. He continued to hold a senior position at the merged entity until it transitioned into RTX in early 2020, after which he retired in 2021.

“Kelly is an accomplished leader with a deep respect in the aerospace industry, recognized for his ability to build effective teams and manage intricate engineering and manufacturing operations,” stated Steven Mollenkopf, chairman of Boeing’s board, in a press release. “We are eager to collaborate with him as he guides Boeing through this critical juncture in its extensive history.”

The search for a new CEO began in March when Dave Calhoun announced his intention to resign. Mr. Calhoun, who had been a board member since 2009, was appointed as CEO in 2020 to help the company recover from the fallout of two tragic crashes that claimed the lives of 346 individuals.

The incidents, which involved the 737 Max 8 jet, occurred in Indonesia and Ethiopia. Following the second crash, global regulators grounded the aircraft for nearly two years. The 737 Max resumed passenger flights in late 2020, experiencing a period of relative stability until January, when a panel detached from a 737 Max 9 operated by Alaska Airlines, reigniting concerns regarding the safety and quality of Boeing’s aircraft.

In response to these challenges, Boeing has implemented a series of changes in recent months, including:

• Enhanced internal inspections
• Increased oversight of suppliers
• Expanded training programs for new employees
• Simplified processes and operational procedures

Additionally, this month, Boeing reached an agreement to plead guilty to a federal felony charge related to the Max 8 crashes as part of a deal with the Justice Department, which will mandate the appointment of an independent compliance monitor to ensure adherence to safety and regulatory standards.