WASHINGTON.- Boeing has named an aerospace industry veteran as its next CEO, taking over a company that has been roiled by legal, regulatory and production issues.
Robert “Kelly” Ortberg, 64, former CEO of aerospace supplier Rockwell Collins, will succeed CEO David Calhoun, 67, effective August 8, the company said Wednesday.
Boeing announced its new CEO and reported a second-quarter loss of more than $1.4 billion on falling revenue. The losses were bigger and profits lower than Wall Street had expected, as both Boeing’s commercial airplane business and defense unit lost money.
The disappointing results come at a difficult time for Boeing. The company has agreed to plead guilty to fraud in connection with the Max jets, two of which crashed, killing 346 people. The Federal Aviation Administration has stepped up its oversight of the company following a series of errors that included a panel breaking off on an Alaska Airlines plane. The company denies allegations from several whistleblowers that it took shortcuts in manufacturing that undermined safety.
The company faces supply chain issues affecting production, which it hopes to resolve in part by reacquiring Spirit AeroSystems, a key contractor. It is also still trying to persuade regulators to approve two new models of the Max and a larger version of its twin-aisle 777 jetliner. It also faces a multibillion-dollar decision on when to design a new single-aisle jet to replace the Max.
Ortberg will serve as CEO and president of the company starting Aug. 8, Boeing said. He recently emerged as a leading candidate. Other executives considered for the job included Patrick Shanahan, a former Boeing executive and now CEO of its main supplier, Spirit AeroSystems, and another Boeing executive, Stephanie Pope, who recently took over as head of the company’s commercial airplane division.
Source: With information from AP
