Boeing names Robert 'Kelly' Ortberg as new president and CEO

Boeing has appointed Robert "Kelly" Ortberg as its new president and CEO, effective August 8, 2024. Ortberg, a veteran in the aerospace industry, previously led Rockwell Collins before its merger with RTX. His appointment comes as Boeing faces significant challenges, including a $1.4 billion loss in the second quarter and ongoing safety concerns following a cabin panel blowout incident in January. This incident has intensified scrutiny on Boeing's production processes, reminiscent of the crises stemming from two fatal crashes in 2018 and 2019 that resulted in 346 fatalities. The company has recently agreed to plead guilty to a U.S. criminal fraud charge related to these crashes, violating a prior agreement with federal prosecutors. Ortberg replaces Dave Calhoun, who announced his departure earlier this year. Boeing's chairman, Steven Mollenkopf, expressed confidence in Ortberg's ability to lead the company through its current difficulties, emphasizing the need for a focus on safety and quality. Boeing's defense and space sector has also faced financial strain, with significant losses attributed to cost overruns on fixed-price contracts. The company has reduced its commercial aircraft production, leading to a 32% drop in aircraft deliveries compared to the previous year. Despite these challenges, Boeing's shares rose by 2% in pre-market trading following the announcement of Ortberg's appointment.