Boeing 737 MAX airplanes sit on the assembly line at the company’s facility in Renton, Wash.
Jennifer Buchanan/The Seattle Times via AP
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Jennifer Buchanan/The Seattle Times via AP
WASHINGTON — After a lengthy search, Boeing has tapped aerospace industry veteran Robert “Kelly” Ortberg as its next CEO, the company announced Wednesday.
Ortberg will start the job on Aug. 8, replacing retiring CEO Dave Calhoun, who has been under fire as the company’s commercial airplane and defense programs continue to struggle.
Boeing will now turn to Ortberg to lead its turnaround plans. He has a background in engineering, not finance, having earned a mechanical engineering degree at the University of Iowa. That may help assuage the concerns of critics who say Boeing’s leadership has been too focused on financial results and not enough on engineering quality.
“I’m extremely honored and humbled to join this iconic company,” Ortberg said in a statement. “Boeing has a tremendous and rich history as a leader and pioneer in our industry, and I’m committed to working together with the more than 170,000 dedicated employees of the company to continue that tradition, with safety and quality at the forefront. There is much work to be done, and I’m looking forward to getting started.”
The job facing Ortberg is daunting. Boeing reported a bigger quarterly loss and weaker revenue than analysts were expecting during the second quarter. The aerospace giant reported a net loss of $1.44 billion in the second quarter, as increased scrutiny of its production lines has limited production of its bestselling 737 Max jets.
“Despite a challenging quarter, we are making substantial progress strengthening our quality management system and positioning our company for the future,” Calhoun said. “While we have more work ahead, the steps we’re taking will help stabilize our operations and ensure Boeing is the company the world needs it to be.”
Boeing’s board Chair Steve Mollenkopf announced the new CEO in a message to employees.
“The Board conducted a thorough and extensive search process over the last several months to select the next CEO of Boeing and Kelly has the right skills and experience to lead Boeing in its next chapter,” Mollenkopf wrote. “He 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.”
Ortberg, 64, is just a few years younger than the company’s outgoing leader. Boeing’s board had previously extended its mandatory retirement age from 65 to 70 to allow Calhoun, now 67, to stay on as CEO.
Ortberg’s career in the aviation industry started at Texas Instruments. He joined Rockwell Collins in 1987 and rose through the ranks to become CEO in 2013. He oversaw mergers with United Technology and RTX (formerly Raytheon) before retiring from the company in 2021.