Boeing ropes in new CEO as losses triple to $1.4B
Boeing has announced the appointment of Robert "Kelly" Ortberg as its new CEO, effective from August 8. This decision comes in the wake of a reported core operating loss of $1.4 billion in Q2, more than triple the loss from a year ago. The change in leadership is seen as a response to growing concerns over the safety and quality of Boeing's aircrafts, which have impeded its return to profitability. Ortberg previously served as the chief executive at Rockwell Collins.
Boeing's revenue drops by 15%, commercial and defense sectors suffer
Boeing's financial woes are evident in a 15% decrease in revenue compared to last year. Both its commercial airplanes business and defense unit have reported losses. This financial downturn coincides with increased scrutiny from the Federal Aviation Administration (FAA) due to a series of missteps, including an incident involving a panel blowout on an Alaska Airlines jet.
Boeing pleads guilty to fraud, faces whistleblower allegations
Boeing has admitted to fraud related to its Max aircraft model, which was involved in two crashes that claimed 346 lives. The company is also contesting whistleblower claims of taking manufacturing shortcuts that could jeopardize safety. These legal issues add to the challenges faced by the company as it grapples with production issues. The US aviation regulator has limited production of 737 MAX jets to 38 per month, but reports suggest that manufacturing rate is even lower during some weeks.
Ortberg's commitment to Boeing's future
"Boeing has a tremendous and rich history as a leader and pioneer in our industry, and I'm committed to working together with the more than 170,000 dedicated employees of the company to continue that tradition," said Ortberg. He joined Rockwell Collins in 1987 as a program manager and rose to the position of CEO in 2013, before retiring in 2021. His engineering background could be comforting to some employees who have criticized Boeing's management for prioritizing finance over engineering quality.
