Boeing announced Wednesday that it had named Robert “Kelly” Ortberg to succeed outgoing CEO Dave Calhoun after a months-long search as the company struggles to recover from several safety crises, including a door panel exploding in mid-air.
Ortberg, a veteran aerospace industry veteran, faces numerous challenges, including reviving jet production and rebuilding trust with regulators, industry and the public. He will take up the role on Aug. 8.
Ortberg, 64, previously led aviation company Rockwell Collins, which became Collins Aerospace in 2018 and is now part of RTX.
He retired from RTX in 2021.
Ortberg will take over the reins of the company and join its board of directors as Boeing faces a number of reputational and financial challenges after a door plug on an Alaska Airlines Boeing plane was blown off in the air earlier this year.
At the time, Boeing was already under fire for two deadly crashes of its 737 Max jets.
The company announced in March that Calhoun would step down at the end of the year.
The company also announced it was replacing its then-chairman and head of its commercial aircraft division.
Now Ortberg is tasked with improving the plane maker’s image and restoring its profits.
“Over the past few months, the board conducted a thorough and extensive search process to select Boeing’s next CEO. Mr. Kelly has the right skills and experience to lead Boeing’s next chapter.” Chairman Steven Mollenkopf said in the memo: to employees on Wednesday.
“Kelly is a deeply respected and experienced leader in the aerospace industry with a strong reputation for building strong teams and running complex engineering and manufacturing companies,” Mollenkopf said.
Boeing’s announcement of a new CEO comes as the company reports disappointing second-quarter results. Losses grow and profits fall Better than expected.
The plane maker reported an adjusted loss of $2.90 per share, nearly $1 below expectations of an adjusted loss of $1.97 per share, according to LSEG analysts.
LSEG analysts said revenue fell 15 percent to $16.87 billion, below forecasts of $17.23 billion.
Meanwhile, Boeing is facing increased regulatory scrutiny following the door-plug scandal and deadly plane crashes.
Senators grilled Calhoun in June, asking why he did not resign immediately.
Calhoun acknowledged that the door plug fraud issue was the result of a manufacturing defect.
Boeing was also responsible for developing key software linked to the deadly crashes in Indonesia and Ethiopia in 2018 and 2019 that killed a combined 346 people.
Boeing recently pleaded guilty to criminal fraud conspiracy charges and agreed to pay a $243.6 million fine for violating a 2021 pleading agreement related to the fatal crashes, according to court documents.
Customers are also concerned about aircraft safety, frustrated by lengthy flight delays at airports across the country, and increasingly resentful of manufacturers.
Boeing has not been immune to internal strife, with the company’s largest labor union threatening to strike if contract negotiations are not concluded in its members’ favor.
