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Boeing has selected its next CEO as the company posts a US$1.4 billion loss in the June quarter.
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Robert K. “Kelly” Ortberg, who has an engineering background and over 35 years of aerospace experience, will replace Dave Calhoun after the latter announced his exit in March. It comes as airlines, such as Virgin Australia, grapple with a shortage of Boeing aircraft.
Virgin, the only Australian carrier operating the 737 MAX family following the collapse of Bonza, has been impacted by the ongoing troubles at Boeing following the mid-air blowout of an Alaska Airlines 737 MAX 9 door plug in January.
The airline has reportedly moved to take over the leases of at least three Rex 737-800s following the collapse of Rex’s jet operations; currently Virgin operates seven MAX 8s with an eighth undergoing testing in the US and six more on order, expected from early 2025.
Virgin’s 25 MAX 10s – which still have not received regulatory approval in the US – will not arrive until 2026 at the earliest.
According to Boeing, Ortberg’s previous experience includes positions at Texas Instruments, Rockwell Collins, and RTX, as well as being the former chair of the Aerospace Industries Association (AIA) Board of Governors.
“The board conducted a thorough and extensive search process over the last several months to select the next CEO of Boeing and Kelly has the right skills and experience to lead Boeing in its next chapter,” said Steven Mollenkopf, chair of the Boeing board.
“Kelly is an experienced leader who is deeply respected in the aerospace industry, with a well-earned reputation for building strong teams and running complex engineering and manufacturing companies. We look forward to working with him as he leads Boeing through this consequential period in its long history.”
In a statement, Ortberg said he is “honoured and humbled” to join Boeing.
“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, with safety and quality at the forefront,” he said.
“There is much work to be done, and I’m looking forward to getting started.”
The planemaker chalked up a loss in the second quarter of calendar year 2024, despite US$16.9 billion in revenue. Its commercial airplanes division lost US$715 million for the quarter and defence, space and security lost $913 million, while global services made an $870 million profit.
Outgoing CEO Dave Calhoun said Boeing is making “substantial progress strengthening our quality management system and positioning our company for the future” despite a “challenging quarter”.
“We are executing on our comprehensive safety and quality plan and have reached an agreement to acquire Spirit AeroSystems,” he said.
“While we have more work ahead, the steps we’re taking will help stabilise our operations and ensure Boeing is the company the world needs it to be. We are making important progress in our recovery and will continue to build trust through action and transparency.”
Ortberg will start as Boeing’s president and CEO on 8 August.
