Boeing appoints new CEO amid report of significant loss
Kyiv • UNN
Boeing has appointed Robert Ortberg as its new CEO, effective August 8. The company reported a loss of $1.4 billion in the second quarter due to safety and quality issues.
Boeing appointed former aerospace veteran Robert "Kelly" Ortberg as its next CEO on Wednesday, as the aviation giant reported heavy losses due to operational problems, AFP reports, UNN writes.
Details
Ortberg, 64, helped lead Rockwell Collins and integrate it into United Technology until his exit from RTX in 2021. Ortberg, as noted, is an engineer and is not part of Boeing, which satisfies key requirements for a CEO in the eyes of some aviation insiders.
His appointment, which will take effect on August 8, comes as Boeing struggles to recover from a series of safety and quality control issues that have increased scrutiny of the company.
These difficulties were reportedly reflected in Boeing's second-quarter results released on Wednesday, with a loss of $1.4 billion compared to a loss of $149 million a year earlier. Revenues fell 14.6% to $16.9 billion.
The latest results reportedly showed significant weakness in the company's defense business due to a number of fixed-price contracts where it suffered large losses due to supply chain issues, as well as higher design costs and technical problems. Boeing's press release lists four defense contracts that resulted in an operating loss of $913 million in the quarter.
JPMorgan Chase analysts praised the appointment, noting that the CEO position "remains a very challenging job.
Addendum
Boeing has been in the spotlight since the January incidentwhen an Alaska Airlines 737 MAX made an emergency landing after a fuselage panel broke off in flight.
