Boeing has recently announced the appointment of Robert “Kelly” Ortberg as the new CEO, replacing Dave Calhoun. Ortberg, a veteran in the aerospace industry, comes from outside the company, bringing with him a wealth of experience from his time at Rockwell Collins. With Ortberg set to start on August 8, the industry is watching closely to see how he will navigate the challenges ahead.
Boeing is currently facing a myriad of issues, from persistent losses to heightened regulator scrutiny and supply chain strains. The company is still reeling from the fallout of the two deadly crashes of its Max planes that occurred in 2018 and 2019, which claimed the lives of 346 people. These crises have led to a crisis of confidence among airline customers and a threat of strike from labor talks. Ortberg will need to address these challenges head-on to turn the company around.
The decision to appoint Ortberg, an outsider to the company, as the new CEO signals Boeing’s desire for a fresh perspective. Ortberg’s experience at Collins Aerospace, where he successfully managed complex acquisitions and negotiations, will be crucial as Boeing navigates its current challenges. Analysts have noted that an outsider like Ortberg may be better positioned to bring in new talent and ideas to the company.
Restoring Trust and Quality
One of Ortberg’s key tasks as CEO will be to restore trust in Boeing’s products and ensure the quality of its manufacturing processes. The recent midair door plug blowout incident highlighted the strain on Boeing’s supply chain and the need for tighter quality control measures. Ortberg will need to work closely with suppliers and regulators to address these issues and prevent future manufacturing flaws.
Boeing’s recent acquisition of Spirit AeroSystems, its fuselage supplier, is a step in the right direction towards improving quality control. However, Ortberg will need to go beyond acquisitions and focus on building a strong team and improving manufacturing processes from within. The success of Boeing’s recovery will depend on Ortberg’s ability to lead the company through these turbulent times and restore its standing in the aerospace industry.