Boeing appoints new CEO during ongoing crisis

On Wednesday, Boeing announced that Robert "Kelly" Ortberg will be its new CEO. This decision follows current CEO Dave Calhoun's declaration to step down by the end of the year due to ongoing challenges in manufacturing. Ortberg will take office on August 8.

At 64 years old, Ortberg is an experienced veteran in the aerospace sector, though he is new to Boeing.

Ortberg started his career at Rockwell Collins, a key aerospace component manufacturer and supplier to Boeing, as a program manager in 1987. He advanced through various positions and became CEO in 2013, guiding the company through a merger with United Technologies in 2018, which led to its integration into RTX, previously known as Raytheon. He retired as CEO of Collins Aerospace, a subsidiary of RTX, in 2021.

He began his professional journey as an engineer at Texas Instruments, holds a bachelor's degree in mechanical engineering, and previously served as chair of the Aerospace Industries Association Board of Governors.

Ortberg takes the helm at Boeing during a challenging period for the U.S. aircraft manufacturer.

Boeing has faced a crisis for most of 2024, beginning with the January 5 decompression incident on an Alaska Airlines 737 MAX 9, when a door plug fell off the plane, creating a breach in the fuselage. An investigation revealed that Boeing employees had removed and reinstalled the part without the essential bolts for secure attachment during production. Fortunately, the pilots managed to land the aircraft shortly after, with no serious injuries reported among passengers or crew.

This incident reignited intense scrutiny on Boeing, which had mostly faded since the 737 MAX returned to service in late 2020 after a 20-month global grounding due to two fatal crashes. The spotlight shifted back to the manufacturer's safety and quality control practices, as issues ranging from minor maintenance tasks to significant mechanical problems captured headlines amid a heightened focus on air travel in the early months of the year.

Boeing was already facing challenges in ramping up production rates on its commercial airplane assembly lines, particularly for the 737 MAX, when the latest crisis struck. The company reduced its production rates during a "safety stand-down" to develop and implement a new safety management protocol. Boeing aims to achieve its former target of 38 MAX jets per month before increasing production further, although the Federal Aviation Administration will need to approve any rate hikes beyond that initial goal.

Boeing has also encountered difficulties with new aircraft, facing delays in the development and certification of its 777X wide-body program as well as the 737 MAX 7 and 10, the smallest and largest models of its narrow-body series. Earlier this month, the FAA granted Boeing permission to start its certification-proving flights for the 777X, marking a significant step towards introducing the jet to the market.

Calhoun assumed the role of CEO in early 2020 during an extended grounding of the global 737 MAX fleet. This grounding lasted 20 months and was prompted by two separate crashes involving the new 737 MAX, which together claimed the lives of 346 people in 2018 and 2019. Prior to his appointment as CEO, Calhoun served as the chairman of Boeing's board.

In March of this year, amid growing pressure due to the crisis, Calhoun announced his intention to resign at the end of the year. Boeing Commercial Airplanes chief Stan Deal stepped down immediately and was succeeded by Stephanie Pope, a long-time Boeing employee. Pope was viewed as a potential internal candidate for the overall CEO position.