Boeing's space and defense chief Ted Colbert resigns
Boeing has announced the immediate departure of Ted Colbert, the head of its Defense, Space & Security division. This marks the first executive change under new CEO Kelly Ortberg, who assumed his role in August. Steve Parker, who is currently serving as the unit's Chief Operating Officer (COO), will take over Colbert's duties until a permanent replacement is appointed.
CEO emphasizes trust restoration
In an email to workers, Ortberg emphasized the importance of rebuilding customer trust and meeting their high expectations. He stated, "At this critical juncture, our priority is to restore the trust of our customers and meet the high standards they expect of us to enable their critical missions around the world." This statement comes as Boeing's space division faces significant challenges, including setbacks with NASA's Starliner capsule project.
Starliner project faces setbacks
The Starliner project has experienced significant difficulties, including a recent decision by NASA to return the capsule from ISS without astronauts. Since 2016, the Starliner has cost Boeing an additional $1.6 billion due to overruns. Colbert's exit coincides with Boeing's efforts to conserve funds through furloughs and a strike involving over 32,000 workers.
Additional challenges with 737 MAX
Boeing has also been dealing with issues related to its 737 MAX aircraft. In January, an Alaska Airlines 737 MAX 9 experienced an in-flight emergency due to missing four crucial bolts. Also, the firm agreed to plead guilty to a criminal fraud conspiracy charge, and pay at least $243.6 million for breaching a deferred prosecution agreement in 2021.
FAA tightens oversight on Boeing
The Federal Aviation Administration (FAA) has increased its oversight of Boeing, and prohibited the company from increasing production of the MAX beyond 38 planes per month, until significant quality as well as safety improvements are made. This decision follows Boeing's admission to making false representations about key software for the 737 MAX to the FAA.
Parker's role in Boeing's future
Parker, who will temporarily assume Colbert's responsibilities, was brought into Boeing less than two years ago to strengthen industrial leadership and address loss-making programs. Prior to this role, he headed Boeing's bomber and fighter programs as well as its St Louis defense plants. His experience could prove valuable as the company navigates through its current challenges.
