Boeing Group is taking over from veteran aviation executive Ortberg
Boeing's 64-year-old successor, Dave Calhoun, steps down at 67. Calhoun, who has been at the helm since early 2020, announced his resignation in March amidst the company's crisis sparked by safety issues with Boeing aircraft. The change at the top comes earlier than initially anticipated, as Calhoun had previously announced his departure for the end of the year.
Ortberg, who has worked in the industry for over 35 years and previously led Rockwell Collins, which later became Collins Aerospace under RTX (formerly Raytheon) after several mergers and acquisitions, will take over as Boeing's CEO. Ortberg left RTX in 2021.
As Boeing's new CEO, Ortberg will face a multitude of challenges in addressing safety and quality control issues and turning around the company's financial fortunes. The company reported a net loss of $1.44 billion for the year, significantly higher than analysts' expectations of a $913 million loss.
The significant loss can be attributed to the decrease in commercial aircraft deliveries and declining defense contract profits. The company's revenue in the second quarter was $16.86 billion, a 15% decrease from the same period last year.
Boeing is under intense pressure due to allegations of safety flaws in its aircraft. A notable incident occurred in January when a 737 MAX 9 from Alaska Airlines experienced an in-flight cabin door separation, forcing an emergency landing.
In response, the U.S. Federal Aviation Administration (FAA) limited the production of the 737 MAX to 38 per month, reverting to 2023 levels. Following the incident, Boeing initiated measures demanded by the FAA to enhance safety and quality.
Other airlines have temporarily suspended the use of Boeing 737 MAX aircraft in their fleets due to the safety concerns. The other significant challenge Ortberg will need to address is restoring Boeing's reputation, which has been severely tarnished by the series of safety issues.
