Subscribe to World Briefings's newsletter

News Updates

Let's join our newsletter!

Do not worry we don't spam!

Business

Aviation Veteran Robert Ortberg Takes Helm at Boeing as Struggles Continue

31 July, 2024 - 4:03PM
Aviation Veteran Robert Ortberg Takes Helm at Boeing as Struggles Continue
Credit: aviationtoday.com

Boeing Appoints Aviation Industry Veteran as New CEO

Arlington, Virginia-based Boeing has named aviation industry veteran Kelly Ortberg to lead the company through its safety and manufacturing crisis. He'll succeed CEO Dave Calhoun, who announced his intentions to step down as chief executive in March. Ortberg's career in aviation spans decades including leadership at aerospace supplier Rockwell Collins, becoming CEO in 2013. Rockwell Collins is now part of Arlington-based RTX Corp (formerly Raytheon), where Ortberg serves as senior adviser.

The announcement comes the same day Boeing announced quarterly results, with a $1.4 million loss last quarter and a 15% decline in revenue.

Challenges Facing Boeing

Ortberg, 64, will take over as CEO beginning Aug. 8, and he'll serve on the board of directors. Calhoun will serve as special adviser to the Boeing board of directors until March 2025.

Boeing is working through both safety concerns following a nearly life-threatening situation involving an in-flight window plug blowout, production delays and quality controls.

Boeing is now under supervision by federal regulators as it steps up production of its 737 Max jets. It also faces a strike deadline in September by Seattle-area factory workers.

Ortberg's Background and Industry Experience

A mechanical engineer, Mr. Ortberg began his career at Texas Instruments in 1983. He joined Rockwell in 1987, quickly rising through the ranks, overseeing development programs for the Boeing 787 and Airbus A350 planes, and becoming chief executive in 2013. He remained in that position until late 2018, when Rockwell was acquired by United Technologies. He retained a senior role at the new company until it merged with Raytheon in early 2020 and became RTX. Mr. Ortberg retired from RTX in 2021.

Rockwell was best known for producing flight deck displays and other electronic systems for airplanes, which are also known as avionics. Boeing and Airbus are its largest customers, and the company's products feature on many popular planes, including the 737 Max. Its electronics are also installed on military planes, such as the F-35 fighter jet.

Industry Experts Welcome the Appointment

Industry experts welcomed the news, noting that Mr. Ortberg is a well-regarded engineer and leader.

“We believe this is a strong, and safe pick,” Ken Herbert, an aerospace and defense analyst at RBC Capital Markets, said in a research note.

Aviation Veteran Robert Ortberg Takes Helm at Boeing as Struggles Continue
Credit: comparably.com
Tags:
Boeing Chief Executive Officer Kelly Ortberg Rockwell Collins Dave Calhoun Boeing Robert Ortberg Aerospace Industry Financial Losses Safety Concerns
Mohammed Al-Zahrani
Mohammed Al-Zahrani

Finance Expert

Providing insights into global financial markets.