Boeing names ex-Rockwell Collins boss as successor to departing chief Calhoun
Boeing has named a successor to departing chief executive Dave Calhoun, as it looks to chart a course out of one of the most turbulent periods in its history.
Former Rockwell Collins chief Kelly Ortberg, 64, will takeover on August 8 2024, bringing more three decades of experience in the aerospace sector to the position.
As head of Rockwell Collins, a major aerospace supplier based in Iowa, Ortberg was responsible for leading the company’s integration with United Technologies and RTX.
He is also the former Chair of the Aerospace Industries Association (AIA), the US trade body representing the sector.
Boeing’s current boss Dave Calhoun announced his departure in March, as the US planemaker made a string of top-level changes in the wake of January’s Alaska Airlines’ blowout incident.
In March, in a letter to employees, Calhoun wrote: “It has been the greatest privilege of my life to serve Boeing. The eyes of the world are on us, and I know that we will come through this moment a better company.
Following the announcement, Steven Mollenkopf, chair of the Board, who led the search for Calhoun’s successor, 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.
“We look forward to working with him as he leads Boeing through this consequential period in its long history.”
“I’m extremely honoured and humbled to join this iconic company,” Ortberg said in a statement. “There is much work to be done, and I’m looking forward to getting started.”
Analysts at Panmure Liberum backed the decision, describing Ortberg as a “highly regarded individual” who should be able to idenftiy new problems and “get realsitic targets in place.”
The crisis at Boeing has seen shares fall over 25 per cent this year to date and brought back into focus two fatal 737 Max crashes in 2018 and 2019, which resulted in the deaths of over 200 people.
Airplane deliveries slowed in the first half of this year and it is now firmly behind its age-old rival Airbus, which has itself been plagued by wider supply chain issues impacting the industry.
Boeing on Wednesday said operating losses had more than tripled to $1.4bn (£1.1bn), as nearly all metrics fell short of expectations. Group revenue came in at $16.9bn, down from $19.8bn a year earlier.
The manufacturer’s crucial commercial airplanes unit reported a near third (32 per cent) year-on-year drop in revenue to $6bn as the company delivered 92 planes in the second quarter, also down 32 per cent.
Boeing also reported negative free cash flow of $4.3bn.