Boeing has named a new CEO, Robert “Kelly” Ortberg, following a core operating loss of $1.4 billion in the second quarter, more than triple the loss from a year ago. Ortberg, a former CEO of Rockwell Collins, will take over from retiring CEO Dave Calhoun. Ortberg, who holds a degree in mechanical engineering, expressed his commitment to prioritizing safety and quality at Boeing.
Despite Ortberg's engineering background, the appointment does not guarantee improved decision-making. Boeing has faced challenges, including the grounding of the 737 Max jet due to fatal crashes and financial losses. Ortberg's experience in the aerospace industry, starting as an engineer in 1983, is expected to bring a fresh perspective to Boeing.
Boeing's financial struggles continue, with core operating losses totaling $33.3 billion since 2019. The company admitted design flaws in the 737 Max crashes that cost over $20 billion. Boeing also pleaded guilty to defrauding the FAA during the jet's certification process and agreed to operate under a court-appointed monitor.
Recent incidents, such as a door plug blowing off a 737 Max plane and whistleblowers reporting safety concerns, have further tarnished Boeing's reputation. The company faces production cuts on the 737 Max until safety issues are resolved, impacting profitability.
In addition to 737 Max challenges, Boeing's defense business reported losses of $913 million, and its Starliner space ship encountered issues after docking at the International Space Station. The company also incurred losses in delivering new Air Force One planes and the Starliner program.
Boeing's financial results initially led to a drop in shares, but the announcement of Ortberg as CEO saw shares rebound. Despite the challenges, Boeing remains focused on addressing safety and quality concerns under new leadership.
