WASHINGTON.- Boeing has named an aerospace industry veteran as its next chief executive, taking charge of one of the engines of the U.S. economy that is struggling with manufacturing.
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 losses of more than $1.4 billion due to falling revenue in the second quarter.
Earnings were weaker than Wall Street expected as both Boeing’s commercial aircraft business and defense unit lost money.
The giant has agreed to plead guilty after two planes crashed in the past seven years, killing 346 people.
The Federal Aviation Administration has stepped up its oversight of the company following a series of errors that included a panel falling off an Alaska Airlines plane. The company denies allegations by several whistleblowers that it took manufacturing shortcuts that compromised safety.
The company faces supply chain issues affecting production, which it hopes to resolve in part by reacquiring Spirit AeroSystems, a key contractor.
The company is seeking approval for two new Max models 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