Boeing named aerospace industry veteran Robert “Kelly” Ortberg its new President and CEO, as it fights to repair and shore up the business.
The company is facing its biggest safety crisis ever since the deadly crashes of 2018, and 2019, that killed 346 people.
This is not a paid-for wall – you can still read for free
We are committed to providing quality journalism that is free. You can help us engage you deeper by registering. You will always have the ability to control yourself.
Boeing announced a $1.4bn second-quarter loss on Wednesday. It has spent many months trying to reassure regulators and airlines, as well as passengers.
Ortberg, 64 years old, was the leader of Rockwell Collins, an aerospace supplier, before the company was acquired by the aerospace and defense giant RTX. Boeing announced that Ortberg will take up his new role on 8 August. He will replace Dave Calhoun the current CEO who announced his resignation earlier this year.
Boeing pleaded guilty earlier this month to a US criminal charge of fraud stemming the two crashes after federal prosecutors found that it had breached a 2021 contract which protected the company against prosecution.
Steven Mollenkopf said that Boeing’s Chairman, Kelly, has the skills and experience needed to lead Boeing into its next chapter.
Ortberg said he was “humbled and honored” to be joining this “iconic company”. He also claimed that quality and safety would “be at the forefront” under his leadership. “There’s a lot of work to do, and I look forward to starting.”
In recent months, executives at the company claim that workers have become more confident to speak out. As staff and union officials described the “panic mode,” of Boeing’s production line, whistleblowers made allegations regarding their experiences and safety on Boeing planes.
Justin Green, partner of Kreindler & Kreindler, says Ortberg should meet the relatives of those killed as his “first step”. Kreindler & Kreindler represents 34 families that lost loved ones in Ethiopian Airlines flight 302. This was one of two fatal accidents. Green said that such a move was “necessary” to understand the cost of Boeing’s negligence.
Boeing, who has cut back on commercial aircraft production due to concerns about the quality of their jets, posted a larger quarterly loss on Tuesday as its troubled defence and space business increased the financial strain for the US planemaker.
The company’s shares rose by 2% in New York during pre-market trade. The stock market value of the company has fallen by a quarter from the beginning of the year.
Boeing’s Defense, Space and Security unit, one of the three main businesses of Boeing, lost billions in 2023, and 2022. Executives attributed this to cost overruns for fixed-priced contracts.
These contracts may have high margins, but they leave the defense contractors exposed to inflationary pressures which have impacted US corporate earnings over the past few years.
Boeing’s Chief Financial Officer, Brian West, stated in May that the company would be burning cash rather than generating it in 2024 due to lower jet deliveries in comparison with last year.
In January , the latest crisis of Boeing began when a plug blew out on a brand new 737 Max 9 after it had taken off from Portland in Oregon. Alaska Airlines was forced to perform an emergency landing. Boeing’s production methods were questioned, leading to a significant drop in the number of Max jets produced.
This has resulted in fewer deliveries and frustrated customers. Boeing delivered 92 aircraft in the second quarter of this year, a 32% decrease from last year.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.