Boeing announced that its Board of Directors has elected Robert K. “Kelly” Ortberg as the company’s new President and Chief Executive Officer, effective August 8, 2024. Ortberg will also join Boeing’s Board of Directors.
“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,” said Ortberg. “There is much work to be done, and I’m looking forward to getting started.”
Ortberg will succeed Dave Calhoun, who announced his intention to retire earlier this year. The decision was confirmed by Boeing on March 25, 2024, at a time when Boeing is under increasing pressure over safety following the Alaska Airlines Boeing 737 MAX 9 door plug blowout on January 5, 2024. Calhoun has served as President and CEO since January 2020 and has been a member of Boeing’s Board of Directors since 2009.
“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, Boeing’s Chair of the Board. “The Board would like to thank Dave Calhoun for his strong leadership at Boeing, first as Chair and then as CEO, when he stepped in to steer the company through the challenges of recent years.”
Former RTX executive
Ortberg started working as an engineer at Texas Instruments in 1983 and then joined Rockwell Collins in 1987. In 2013, he was appointed as the president and CEO of Rockwell Collins and was responsible for overseeing the company’s integration with United Technologies and RTX until he left RTX in 2021.
He subsequently held a number of senior industry leadership roles, including as a member of the RTX board of directors, Boeing highlighted.
Boeing has been under increasing pressure following the initiation of a safety process investigation by the Federal Aviation Administration (FAA) and the commencement of a criminal investigation by the US Justice Department into the Alaska Airlines incident.
Boeing Q2 results affected by 737 setbacks
Boeing posted a net loss of $1.44 billion in the second quarter of 2024, compared to a loss of $149 million a year earlier.
The manufacturer has been grappling with delivery slowdowns of its 737 aircraft due to production issues and operational incidents.
As a result, in the second quarter of 2024, the aircraft manufacturer delivered only 92 aircraft, compared to 136 the previous year. Boeing’s revenue for the first quarter of 2024 fell to $16.86 billion, down 15% from the same period last year.
“Despite a challenging quarter, we are making substantial progress strengthening our quality management system and positioning our company for the future,” Calhoun commented. “We are executing on our comprehensive safety and quality plan and have reached an agreement to acquire Spirit AeroSystems. While we have more work ahead, the steps we’re taking will help stabilize our operations and ensure Boeing is the company the world needs it to be. We are making important progress in our recovery and will continue to build trust through action and transparency.”