Boeing recruits Kelly Ortberg from retirement to combat crisis
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The news: Boeing appointed aviation veteran Kelly Ortberg as its new President and CEO, effective 8 August, taking him out of retirement to succeed David Calhoun, who is stepping down amid major operational and financial challenges facing the plane maker.
The numbers: In a statement following the unveiling of a USD1.4 billion ($2.1 billion) quarterly loss, Boeing chairman Steven Mollenkopf said the 64 year old former Rockwell Collins CEO, will lead the century-old company “through this consequential period.”
The context: Boeing’s commercial jet business is embroiled in a quality crisis linked to deadly crashes and criminal fines. The company is also dealing with intense regulatory scrutiny, federal probes, congressional inquiries and supplier shortages.
Despite retiring in 2021, Ortberg is respected by union leaders and analysts for fostering a strong culture at Rockwell, where he managed both its military and commercial divisions, and strengthened ties with airlines and the Pentagon while tackling similar challenges to those Boeing faces today, according to The Wall Street Journal.
What they said: "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,” said Mollenkopf said. “We look forward to working with him as he leads Boeing through this consequential period in its long history."
"The Board would also 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," he added.
In the statement, Ortberg said: "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. There is much work to be done, and I'm looking forward to getting started."
The sources: Boeing statement , The Wall Street Journal
