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Kelly Ortberg: The New Boeing CEO Who is Already on the Headlines

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Robert ‘Kelly’ Ortberg is now named as the CEO of Boeing. The former CEO of Rockwell Collins rose to the ranks from 1987 to 2013. Post integration of Rockwell Collins with United Technologies Corporation, he showcased excellent business leadership as the CEO of the newly created Collins Aerospace company. Having become the CEO of Boeing, he is already making waves for his corporate strategy on his first day at the job for his work location.

A pioneer in the aviation industry, Boeing has been experiencing a few rough years which have tarnished its name on a global level. The company has lost immense money, displeased customers and eventually falling under the radar of  several federal inquiries, including a probe into the near-catastrophe mid-air door plug blowout on January 5. It has pleaded guilty to conspiracy to commit fraud, is having difficulty streamlining its aircraft manufacturing process, and is unable to return two astronauts from the International Space Station due to malfunctions in a spacecraft it manufactured for NASA.

Quick Background on the New Boeing CEO

Robert taking over a financially failing company, could either be the best or the worst promotion in history. He holds a degree in mechanical engineering. From 1987 until 2013, he worked his way up the ranks of the aviation technology company Rockwell Collins, where he eventually became CEO. he has earned wide recognition from industry experts over the years. Currently, he will desk will be in Seattle. In the heaps of Boeing's rank and file, hundreds of whom remained in the Seattle area while the company's headquarters moved farther and farther away, viewing Robert’s location decision as a good sign.

Problems the New Leader Will be Stepping Into

First, the company is already having issues in its defense division, which underwent a $913 million loss in the second quarter. Two astronauts who were put up through Boeing's Starliner spacecraft have malfunctioning issues returning to their current position at the International Space Station.

Last month the company pleaded to be misleading the US government during the Max certification process.

A two-day hearing on the 737 Max that experienced a panel explosion during an Alaska Airlines flight in January has just concluded by the National Transportation Safety Board. It is reported that employees at the 737 facility in Renton, Washington, said  that they are under excessive pressure to build planes rapidly, which causes errors.

The Federal Aviation Administration stated that the regulator has 16 open enforcement cases against Boeing, which is three or four times the usual amount, with half of those cases beginning after the door-plug blowout.

The company was observed to be persuading higher ups to allow Max jetliners to start operating again following catastrophes in 2018 and 2019 that claimed 346 lives. The previous CEO, David Calhoun, managed to get the modified Max back in the air, but he was unable to prevent losses which exceeded $25 billion since the beginning of 2019. Calhoun declared his resignation in March.

With regards to the commercial jet industry, the company faces delayed approval of new 737 and 777 models. There are two 747s that are years behind schedule and will be the next Air Force One aircraft.

Already Making Waves

Robert has already made waves on his first day on the job for choosing the location of his workstation. He made the decision to operate from Boeing's offices in Seattle, which was the company's original home for 85 years until 2001, when it relocated its corporate headquarters to Chicago. He chose to work 2,300 miles away from the company’s headquarters in Arlington, Virginia, to support its efforts in regaining trust in its commercial aviation division. He is currently at Renton, Washington, manufacturing floor, where the company produces the 737 Max series of problematic aircraft.

Robert and his team are expected to ensure the company’s workforce is trained, especially after it saw several experienced employees leave or were laid off during the pandemic. Currently, there are thousands of new hires in the factories.

Well Praised Among Industry Experts and Analysts

Robert, who comes with more than three decades of rich professional experience, rose through the ranks of commercial and defense supplier Rockwell Collins. This made analysts and industry experts view him as a good listener with a mechanical engineering degree. At the same time, they are cautiously optimistic about him, since he is an outsider to Boeing.

Robert may be a complete stranger to Boeing but he appears to have a solid industry reputation.

Some say that a potential collaboration with the new CEO may present Boeing with a great chance to demonstrate its commitment to its employees and recognize the extraordinary manufacturing prowess and aptitude of knowledgeable IAM Members on the shop floor.

 

Some even call his appointment the best news about Boeing in nearly 20 years. Particularly when every other option has been exhausted, relying on the board to make the right decision appears to be on a positive note. He is believed to be what the company has been looking for in all these years.

Due to the respect Robert has in the industry, experts trust that he could bring more hope for a better future than what the company has enjoyed in decades.

The safety and cultural issues which were scrutinized to such an extent that Robert’s hiring be a great opportunity for progress. He could likely cut down the company’s financial targets to focus on quality and would have the understanding from investors if he does.