Kelly Ortberg, an external hire, has stepped into the role of CEO at Boeing.

Robert “Kelly” Ortberg will take over as Boeing’s president and CEO on August 8, 2024, and will also join the company’s Board of Directors. Ortberg, a seasoned aerospace professional, is tasked with the significant challenge of restoring Boeing’s reputation. This involves regaining the trust of regulators, airlines, and the public, addressing production issues, ensuring timely aircraft deliveries, and managing financial losses, which have reached $8 billion this year. Boeing’s stock has also dropped by 37% in 2024.

On his first day, Ortberg will visit Boeing’s Renton, Washington factory, where the 737 Max is produced, to engage with employees and review safety and quality protocols. He expressed his enthusiasm for joining Boeing and his commitment to restoring the company’s industry leadership through teamwork.

Industry experts are cautiously optimistic about Ortberg, who has over 30 years of experience, including leading Rockwell Collins. His reputation as a good listener and his engineering background are seen as valuable assets, especially since he is an outsider to Boeing.

Ortberg’s leadership will be crucial as Boeing addresses various challenges, including fixing a design flaw that caused a door plug blowout on a 737 Max 9 earlier this year. This incident, along with past fatal crashes, has kept Boeing in crisis mode. Ortberg has promised transparency and regular updates to staff.

Boeing recently agreed to a plea deal over defrauding the U.S. government during the Max certification, which includes three years of oversight by an independent monitor. Ortberg will also need to address delays in certifying new 737 and 777 models and issues in the defense sector, such as the delayed Air Force One aircraft and the problematic Starliner capsule.

The first 100 days of Ortberg’s tenure are seen as critical, with significant decisions expected to have long-term impacts. He will need to ensure the workforce is well-trained, especially with many new hires replacing experienced staff who left during the pandemic. The union representing Boeing workers is seeking substantial raises and has authorized a strike if negotiations fail.

Ortberg’s appointment follows a leadership shake-up after a door plug blowout incident, with Dave Calhoun stepping down. Ortberg will be based in the Seattle area, close to Boeing’s main production facilities. He emphasized the importance of customer and industry partner support in his initial communication to employees.

Boeing’s relationships with customers and suppliers have been strained, particularly after the door plug incident. Southwest Airlines, a major Boeing customer, has scaled back growth plans due to delivery delays. Southwest’s CEO expressed optimism about working with Ortberg to restore Boeing’s position as a leading aerospace company.