Kelly Ortberg, a veteran of the industry, is the new CEO of Boeing.
Boeing has been in the spotlight of scandals for years. CEO Calhoun has to step down due to this. His successor comes from a major supplier company.
US aircraft manufacturer Boeing has introduced 64-year-old Kelly Ortberg as the new CEO. He previously led major supplier Rockwell Collins, among others. Boeing is under pressure to improve its quality controls after a series of mishaps. Only then will the Airbus competitor be able to expand the production of its important Boeing 737 model.
In the last quarter, Boeing missed Wall Street expectations: Revenue fell short of analysts' estimates and losses were higher. Despite this, the stock rose by more than three percent in after-hours trading following Ortberg's appointment. He is set to take over on August 8. His predecessor, Dave Calhoun, had previously announced his retirement by the end of the year.
Boeing has been in a crisis for over five years since two 737 Max jets crashed, killing 346 people. A more than 20-month grounding of the aircraft and problems with other models pushed the manufacturer far behind its European rival Airbus.
Boeing Revenue in Decline
At the beginning of this year, a fuselage section of a nearly new 737-9 Max from Alaska Airlines broke off, prompting the US Federal Aviation Administration (FAA) to intervene. Boeing is currently not allowed to expand the production of the entire 737 series beyond 38 aircraft per month. Boeing had planned to increase production to 50 aircraft per month to clear delivery backlogs. Airlines such as Southwest and Ryanair had to scale back their capacity expansion plans.
In the last quarter, deliveries in the commercial aircraft segment fell by 32 percent year-on-year to 92 aircraft. Revenue shrank by a similar magnitude to $6 billion. In addition to quality and production problems with civilian aircraft, Boeing is also facing headwinds in its space and defense business.
Corporate-wide, revenue fell by 15 percent to just under $16.9 billion (€15.57 billion). Analysts had expected over $17.4 billion. In the last quarter, Boeing reported a loss of $1.44 billion - compared to a loss of $149 million a year earlier.
Boeing, aiming to recover from its series of mishaps, announced Kelly Ortberg as the new CEO, who has extensive experience in the aircraft industry, having led major supplier Rockwell Collins. To improve its quality controls, Boeing needs to expand the production of its Boeing 737 model, a crucial step towards outpacing its competitor Airbus in the manufacture of aircraft.
