• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Boeing taps aerospace veteran Ortberg to replace Dave Calhoun as CEO
Editor's Pick

Boeing taps aerospace veteran Ortberg to replace Dave Calhoun as CEO

by July 31, 2024
by July 31, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Boeing has named Robert “Kelly” Ortberg to replace CEO Dave Calhoun, picking a longtime aerospace veteran from outside the company as the manufacturer struggles to regain its footing from its safety and manufacturing crises. He will start Aug. 8.

Ortberg, 64, previously led major aerospace supplier Rockwell Collins, which later became Collins Aerospace, leading major acquisitions, including one early in his tenure. The business is now part of industry behemoth RTX. He retired in 2021, though he was most recently on RTX’s board and resigned on Wednesday.

The appointment of the more-than-three-decade aerospace veteran shows Boeing is seeking a steady hand that knows the industry — but also a company outsider. Jefferies analyst Sheila Kahyaoglu said in a July 29 note that at Collins, Ortberg was a “tough negotiator dealing with a diverse set of customers and suppliers and managing the complexity of its diverse customer base,” including Boeing.

Ortberg, who has a mechanical engineering degree, will face a host of challenges to turn Boeing around: persistent losses, additional regulator scrutiny, supply chain strains, a crisis of confidence from airline customers whose planes are delayed, and tense labor talks that now include the threat of a strike.

Boeing said in March that Calhoun would step down by year’s end, part of a broader company shake-up that also included the departure of its then-chairman and the replacement of its head of commercial aircraft unit. The changes came after a door plug blew out of a nearly new 737 Max 9, heightening federal scrutiny of Boeing just as it was trying to move on from two fatal crashes of its bestselling plane.

Boeing announced Ortberg’s appointment alongside a wider-than-expected quarterly loss and a 15% drop in sales.

“Kelly is an experienced leader who is deeply respected in the aerospace industry, with a well-earned reputation for building strong teams and running complex engineering and manufacturing companies,” Boeing chairman Steven Mollenkopf said in note to employees on Wednesday.

Ortberg will also join Boeing’s board.

Boeing has in recent months tried to move past its production and safety crises, including the continued fallout from two deadly crashes of its Max planes in 2018 and 2019 that killed 346 people.

Earlier this month it pleaded guilty to a federal fraud charge that said it misled regulators about the Max planes before they were certified. The agreement requires an independent corporate monitor at the company for three years.

As CEO, Ortberg will have to ensure quality of Boeing’s products that depend on a strained and massive supply chain. The company, which employs some 170,000 people, has to train thousands of new employees who replaced more experienced staff who left in the pandemic, a challenge Boeing’s suppliers are also facing.

The midair door plug blowout put Boeing’s leaders back in crisis mode, though there weren’t any serious injuries among passengers or crew. Bolts to hold the door panel in place weren’t installed at Boeing’s Renton, Washington, factory, according to early accident reports.

That accident was the most serious of a host of manufacturing flaws that also included misdrilled holes and incorrect spacing on fuselages, problems that have slowed deliveries, depriving the company of cash and customers of new planes.

Boeing reached a deal earlier this month to buy Spirit AeroSystems, its fuselage supplier it previously owned. Many of the recent problems originated there and Boeing’s leaders have said the acquisition Boeing’s leaders have said will help them get a better handle on quality after years of outsourcing, a practice that outgoing CEO Calhoun said earlier this year likely went “too far.”

“One person cannot turn around a company, but Kelly should be able to cast a wider net for talent than a Boeing insider could,” Bank of America aerospace analyst Ron Epstein said in a note Wednesday. “Also, we note that Rockwell Collins fostered a strong culture, something that we think Boeing is in dire need of now.”

This post appeared first on NBC NEWS
You Might Also Like
  • Inflation rate hit 3.2% in July: Here’s why a return to ‘normal’ prices is a long way off
  • Walgreens plans store closures as CEO says consumers are ‘stunned’ by prices
  • Shareholders push casinos to reassess indoor smoking
  • Weekly mortgage demand drops to three-month low as rates begin climbing again
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Tlaib ally mourns assassination of top Hamas leader: ‘His martyrdom is not in vain’
next post
White House can’t say what assassination of top Hamas leader could mean for Gaza ceasefire deal

You may also like

Federal Reserve raises interest rates to 16-year high as fight...

May 6, 2023

Amazon is stepping up to fill a gap in Hollywood’s...

May 1, 2025

Restaurants are rebounding — but Starbucks and McDonald’s still have...

January 29, 2025

Visa and MasterCard settle long-running antitrust suit over swipe fees...

March 28, 2024

Rite Aid bankruptcy means pharmacies will keep dwindling

October 17, 2023

Hundreds of U2 fans didn’t know the seats they were...

May 18, 2023

Red Lobster says unlimited shrimp promotion was too popular and...

December 2, 2023

AMC is poised to ride the box office rebound, as...

November 19, 2024

Interest rates will likely start coming down this year —...

March 7, 2024

Has the Stanley cup hype reached its peak?

January 7, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past This Level Crucial For Resumption Of Upmove

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past...

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    The plane that crashed in South...

    January 2, 2025

    Bank of America CEO says U.S....

    May 31, 2024

    Scientists Plan to Stop Livestock Diseases...

    December 16, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here