Boeing Names Robert Ortberg As New CEO Amidst Safety And Financial Struggles

Boeing has named Robert “Kelly” Ortberg, a seasoned aerospace industry expert, as its new president and CEO. This decision comes as the company faces significant challenges and works to rebuild its reputation.

The change in leadership follows a series of setbacks for Boeing. Earlier this year, a cabin panel blowout on a 737 Max 9 led to a major safety crisis. This incident came after two deadly crashes in 2018 and 2019, which resulted in the tragic loss of 346 lives.

Boeing’s new CEO, Ortberg, 64, will take over on August 8. He previously led Rockwell Collins, which is now part of aerospace and defense giant RTX. Ortberg will replace Dave Calhoun, who announced his departure earlier this year.

Boeing also recently agreed to plead guilty to a US criminal fraud charge related to the crashes. This plea comes after federal prosecutors found Boeing had violated a 2021 agreement that had previously shielded it from prosecution.

Boeing’s chairman, Steven Mollenkopf, praised Ortberg’s selection, stating that his experience and skills make him a strong choice to lead the company through its next phase. Ortberg expressed his commitment to prioritizing safety and quality in his new role.

Justin Green, a lawyer representing families affected by the crashes, suggested that Ortberg should meet with the victims' relatives to understand the impact of Boeing’s mistakes. This step, Green said, is crucial to grasping the human cost of the company’s failures.

The company is facing financial difficulties as well. Boeing reported a $1.4 billion loss for the second quarter and has been struggling with reduced aircraft production. The recent door plug incident on the 737 Max 9 has further strained Boeing’s operations, leading to a 32% drop in aircraft deliveries compared to last year.

Boeing's stock value has decreased by 25% since the start of the year, although shares saw a slight rise of 2% during pre-market trading in New York. The company's defense, space, and security unit has also been hit hard, with significant financial losses attributed to cost overruns on fixed-price contracts.