Boeing has appointed Robert Kelly Ortberg, the former CEO of Rockwell Collins, as its new chief executive, as the aerospace giant announces it has suffered “huge” losses amid operational problems.
Ortberg’s appointment, which takes effect Aug. 8, comes as Boeing seeks to recover from a series of safety and quality control problems that have deepened criticism of the company.
These difficulties were evident and influential in the company’s second-quarter results published yesterday, Wednesday, which recorded a loss of $1.4 billion, compared to a loss of $149 million the previous year.
Revenue fell 14.6% to $16.9 billion.
The quarterly results reflected the continued negative impact of Boeing’s commercial division, which has cut production and improved safety and quality control practices under regulatory scrutiny.
The latest results also showed significant weakness in its defense industries, which were hit by a number of fixed-price contracts, as well as large losses due to supply chain issues, rising costs, and technical problems.
Boeing has faced widespread criticism since a January incident when a 737 Max operated by Alaska Airlines made an emergency landing after a panel separated from the fuselage during flight.
Current CEO David Calhoun was set to remain in the job until 2028 until the Alaska Airlines accident sparked outrage in Congress and alarmed airlines that buy Boeing planes.
Ortberg said in a statement Wednesday that he was “honored” to join Boeing, adding that “there is a lot of work to be done, and I look forward to getting started.”
“I am excited about Ortberg’s appointment,” Rep. Rick Larsen, a Democrat on the House Transportation Committee, said on the House floor. “Ortberg is a mechanical engineer … and I hope that means he will ensure that his most important message to everyone is to build the best and safest airplanes in the world.”
Ortberg is scheduled to take office two days after the National Transportation Safety Board holds a hearing in Washington on the Alaska Airlines crash.
