DALLAS — Boeing has announced that its Board of Directors has elected Robert K. "Kelly" Ortberg as new president and CEO, effective August 8, 2024.
Ortberg, who comes from a mechanical engineering background, succeeds Dave Calhoun, Boeing's president and CEO since January 2020.
The executive, 64, started his career with Texas Instruments as an engineer in 1983, then moved on to Rockwell Collins as a program manager in 1987, where he rose through the ranks to become president and CEO in 2013.
After managing Rockwell Collins for five years, he oversaw the company's merger with United Technologies and RTX until his retirement in 2021.
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Safety, Finance, and Trust at Stake
The newly appointed CEO of Boeing, faces several significant challenges as he takes the helm of the aerospace giant:
- Production Challenges: Boeing has been grappling with production issues, particularly in its commercial airplanes business. Ortberg will need to address these challenges to improve the company's manufacturing processes and output.
- Financial Recovery: The company reported a loss of more than US$1.4 billion in the second quarter of 2024. Ortberg will be tasked with steering Boeing towards financial stability and profitability.
- Safety and Quality Concerns: In the wake of recent incidents, such as the Alaska Airlines door panel issue with the 737 MAX, Ortberg must prioritize safety and quality control measures. This includes implementing and overseeing the recommendations from Admiral Kirkland Donald's independent assessment of Boeing's quality management system.
- Regulatory Compliance: Boeing faces increased scrutiny from the Federal Aviation Administration (FAA). Ortberg will need to work on improving the company's relationship with regulators and ensuring compliance with safety standards.
- Restoring Customer and Public Confidence: The new CEO will have to focus on rebuilding trust among Boeing's customers, including airlines and the flying public, which has been shaken by recent events.
- Production Expansion: The FAA has halted Boeing's plans to increase 737 MAX production. Ortberg will need to address the quality control issues that led to this decision and work towards meeting the conditions for resuming production growth.
- Supply Chain Management: Strengthening oversight of Boeing's extended commercial airplane production system, including suppliers like Spirit AeroSystems, will be crucial for improving overall quality and efficiency.
- Employee Morale and Corporate Culture: Given the recent challenges, Ortberg may need to focus on boosting employee morale and fostering a culture of safety and quality throughout the organization.
Comments from Boeing, New CEO
"The Board conducted a thorough and extensive search process over the last several months to select the next CEO of Boeing and Kelly has the right skills and experience to lead Boeing in its next chapter," said Steven Mollenkopf, Chair of the Board.
"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. We look forward to working with him as he leads Boeing through this consequential period in its long history."
"I'm extremely honored and humbled to join this iconic company," said Ortberg.
"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. There is much work to be done, and I'm looking forward to getting started."