Robert K. “Kelly” Ortberg has officially taken the reins as the new President and CEO of Boeing, starting on August 8, 2024. In addition to his new role, Ortberg will also be joining Boeing’s Board of Directors.
His primary objective as the new CEO is to rebuild the reputation of Boeing as a prominent American manufacturing powerhouse. This monumental task will involve making numerous crucial decisions daily to regain the trust of regulators, airlines, and the public. It also includes addressing ongoing production defects, ensuring timely delivery of aircraft to customers, and putting an end to the significant cash burn that the company has been experiencing, amounting to around $8 billion this year alone.
Ortberg’s first order of business on his inaugural day was to tour Boeing’s factory in Renton, Washington, where the troubled 737 Max aircraft is manufactured. He engaged with employees, reviewed safety and quality protocols, and plans to conduct similar visits to other Boeing facilities in the future.
With over 30 years of experience in the aerospace industry and a background in mechanical engineering, Ortberg is viewed favorably by analysts and industry insiders. His reputation as a good listener and his outsider perspective are seen as valuable assets as he navigates the challenges facing Boeing.
One of the pressing issues that Ortberg will need to address is the manufacturing flaws that have plagued Boeing, as highlighted in a recent National Transportation Safety Board hearing. Boeing’s top safety executive for commercial aerospace disclosed ongoing efforts to rectify design issues to prevent incidents like the door plug blowout that occurred earlier in the year.
In addition to tackling challenges in commercial aviation, Ortberg will also need to focus on addressing delays in the certification of new aircraft models and resolving issues in Boeing’s defense unit. The company’s defense segment is facing challenges with the delayed delivery of two 747 aircraft designated as the next Air Force One, as well as setbacks with the Starliner capsule developed for NASA missions.
Ortberg’s leadership in the first 100 days will be critical, with decisions made during this period expected to have long-lasting effects on Boeing. He will need to oversee the training of a new workforce to compensate for the departure of experienced staff and address labor disputes, such as the demands for significant raises by the union representing Boeing factory workers.
Establishing strong relationships with customers and suppliers, who have been impacted by delivery delays and production issues, will be crucial for Ortberg’s success. Southwest Airlines, one of Boeing’s major customers, is optimistic about working with Ortberg to restore Boeing’s position as a leading aerospace company.
Ortberg’s leadership comes at a pivotal moment for Boeing, as the company seeks to regain its footing and rebuild trust within the industry. His strategic vision and ability to navigate complex challenges will be essential in steering Boeing towards a path of recovery and success.
