Boeing Names Robert Ortberg as New CEO Amidst Troubles

Boeing has appointed Robert “Kelly” Ortberg as its new CEO, replacing Dave Calhoun. Ortberg, a veteran aerospace executive, will officially take over the role on August 8, 2024. In addition to his new position as CEO, Ortberg will join Boeing’s Board of Directors.

Ortberg’s appointment comes at a challenging time for Boeing, which has faced intense scrutiny over the safety of its 737 Max jets and legal troubles related to defrauding the Federal Aviation Administration (FAA). Calhoun, who began his tenure as CEO in January 2020, had his mandatory retirement age extended from 65 to 70 in April 2021 to allow him to continue in the role. Despite this extension, Calhoun announced his retirement earlier this year, prompting the selection of Ortberg. In a statement, Ortberg acknowledged the significant challenges ahead for Boeing and expressed his eagerness to address these issues and lead the company forward.

Robert Ortberg, aged 64, has a distinguished career in the aerospace industry. He started his professional journey at Texas Instruments before joining Rockwell Collins in 1987, a prominent company in aviation technology. Ortberg began at Rockwell as a program manager and rose through the ranks to become CEO in 2013. Under his leadership, Rockwell was recognized as one of Forbes’ top large employers and underwent a significant acquisition by United Technologies Corporation in 2018. Ortberg retired from Rockwell in 2021 and currently serves on the Board of Directors of Aptiv PLC, a leading automotive technology supplier.

Boeing has faced a series of significant challenges in recent years. The company came under intense scrutiny following two tragic crashes involving its 737 MAX aircraft in 2018 and 2019. These crashes resulted in the deaths of 346 people and led to the grounding of all 737 MAX jets from March 2019 until December 2020. The grounding was necessary for Boeing to address issues with a faulty flight control system. In 2021, Boeing paid a $243 million criminal fine in connection with the crashes but avoided criminal charges by agreeing to implement measures to prevent future violations of federal fraud laws. However, it was later revealed that Boeing had not fully met the required anti-fraud standards, leading to additional legal repercussions. The company agreed to plead guilty to fraud and pay an additional $243.6 million in fines, which was significantly less than the $24.8 billion in damages sought by the families of the crash victims.

Earlier this year, Boeing faced further complications when a panel detached from an Alaska Airlines plane mid-flight on January 5, 2024. The panel, which was found to be missing four bolts, resulted in the temporary grounding of over 170 Boeing 737 MAX 9 aircraft. This incident triggered a series of investigations into Boeing and its partner, Spirit AeroSystems, revealing further manufacturing and quality control issues within the company.

In addition to these ongoing issues, the 2022 Netflix documentary “Downfall: The Case Against Boeing” brought to light concerns about the company’s internal culture. The documentary suggested that a profit-over-safety mentality played a significant role in the crashes involving the 737 MAX, further highlighting the need for a cultural shift within the company.