Boeing 737 MAX aircraft sit on the assembly line at the company’s Renton, Washington, factory.
Jennifer Buchanan/seattle times via AP
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Jennifer Buchanan/seattle times via AP
WASHINGTON — Boeing Co. has named aerospace industry veteran Robert “Kelly” Ortberg as its next chief executive after a lengthy search, the company announced Wednesday.
Ortberg will take over on August 8, replacing retiring Chief Executive Dave Calhoun. criticize.
Boeing will now hire Ortberg to lead its turnaround plan. He has an engineering background, not finance, and earned a degree in mechanical engineering from the University of Iowa. That could help allay concerns from critics who say Boeing’s leadership is too focused on financial performance and not enough on engineering quality.
“I am deeply honored and humbled to be joining this iconic company,” Ortberg said in a statement. “Boeing has a long and rich history as a leader and pioneer in our industry, and I am committed to working with them.” The company’s more than 170,000 dedicated employees work together to continue this tradition and put safety and quality first, and I look forward to getting started.
Ortberg has a tough job ahead of him. Boeing reported a wider quarterly loss in the second quarter and revenue that fell short of analysts’ expectations. The aerospace giant reported a second-quarter net loss of $1.44 billion as strict scrutiny of its production lines limited production of its best-selling 737 Max jet.
“While this quarter was challenging, we made substantial progress in strengthening our quality management systems and positioning the company for the future,” Calhoun said. “While we have more work to do, the steps we are taking will have Help stabilize our operations and ensure Boeing is the company the world needs.”
Boeing Chairman Steve Mollenkopf announced the appointment of the new CEO in a message to employees.
“The board has conducted a thorough and extensive search process over the past several months to select Boeing’s next CEO, and Kelly has the right skills and experience to lead Boeing into its next chapter,” Mollenkopf wrote. “He is an experienced leader who is deeply respected in the aerospace industry and has a strong reputation for building strong teams and operating complex engineering and manufacturing companies.”
At 64, Ortberg is only a few years younger than the company’s outgoing leader. Boeing’s board of directors had previously extended the mandatory retirement age from 65 to 70 to allow Calhoun, 67, to continue as CEO.
Ortberg began his career in the aerospace industry at Texas Instruments. He joined Rockwell Collins in 1987 and was promoted to CEO in 2013.
