Boeing’s New Leadership: Kelly Ortberg Steps In to Revive Struggling Planemaker

Boeing has appointed Kelly Ortberg as its new President and CEO, tasking him with reviving the planemaker’s fortunes amid a safety and reputational crisis. Ortberg, a 30-year aerospace veteran, will focus on restoring trust with regulators and boosting jet production. Boeing shares rose 2.9% following the announcement.

Boeing on Wednesday named aerospace industry veteran Kelly Ortberg as its new President and CEO, marking a crucial moment for the company. Ortberg, who previously led Rockwell Collins, is slated to begin on August 8 and will tackle significant challenges, including reviving jet production and regaining regulator and public trust. Following the news, Boeing shares climbed by 2.9% before the market opened.

Boeing has faced a turbulent period, dogged by a reputational and safety crisis following a mid-air panel incident with an Alaska Airlines-operated MAX 9 jet in January. This led to a $1.4 billion loss in the second quarter and FAA restrictions on 737 MAX jet production. The resignation of CEO Dave Calhoun and the departure of the company's board president ensued, amplifying the urgency for robust leadership.

Ortberg's appointment has garnered a positive response from analysts. With over 30 years in aerospace and defense, including a successful tenure at Rockwell Collins, he is seen as a transformative figure. Boeing's Defense, Space, and Security unit has been especially hard-hit, prompting a pivot away from high-risk fixed-price contracts. The company faces a challenging path to recovery, focusing on quality control and restoring financial stability.