Seattle, WA – August 8, 2024 – Boeing has officially announced Kelly Ortberg as its new Chief Executive Officer, effective immediately. This significant leadership change aims to steer the aerospace giant through critical challenges and strategic opportunities. Ortberg, a seasoned executive with extensive experience in the aerospace and defense sectors, was named CEO by the Boeing Board on July 31, 2024. He begins his role today with a commitment to restoring trust and driving excellence across the company.

Ortberg’s Message to Boeing Employees

Kelly Ortberg began his tenure with a heartfelt and motivational message to Boeing employees, highlighting his commitment to restoring trust and emphasizing the importance of teamwork. “Restoring trust starts with meeting our commitments—whether that’s building high-quality, safe commercial aircraft, delivering on defense and space products, or servicing our products to keep our customers running 24/7,” Ortberg wrote. “It also means meeting our commitments to each other and working collaboratively across Boeing to meet our goals.”

Ortberg’s emphasis on quality and safety is a direct response to the issues Boeing has faced in recent years. The company has been under intense scrutiny due to production delays and safety concerns, particularly surrounding the 737 MAX. “People’s lives depend on what we do every day, and we must keep that top of mind with every decision we make,” Ortberg stressed, underscoring the critical nature of their work.

In his message, Ortberg also shared his plans to be hands-on and visible within the company. “Because what we do is complex, I firmly believe that we need to get closer to the production lines and development programs across the company. I plan to be based in Seattle so that I can be close to the commercial airplane programs,” he stated. This approach is reminiscent of Ortberg’s tenure at Rockwell Collins, where he was known for removing VIP parking spots to promote equality and often parking far from the building himself to set an example. Brad Neilly, a former employee, recalled how Ortberg’s actions made a big impact on him and other employees​.

Ortberg’s message also highlighted his intention to engage directly with employees and stakeholders. “In fact, I’ll be on the factory floor in Renton today, talking with employees and learning about challenges we need to overcome, while also reviewing our safety and quality plans. Soon I’ll be visiting many of our sites and I look forward to meeting with teammates around the world,” he said. This commitment to being present and involved is expected to foster a stronger connection between leadership and the workforce, a critical step in addressing the cultural and operational issues that have plagued Boeing.

The new CEO’s approach has already garnered positive reactions from within the company. “Ortberg’s willingness to be on the ground and listen to employees is exactly what Boeing needs right now,” said an anonymous Boeing employee on X (formerly Twitter). “It’s a sign that he’s serious about making real changes and addressing the issues we’ve been facing head-on.”

Ortberg concluded his message with a pledge for transparency and regular communication. “I will be transparent with you every step of the way, sharing news on progress as well as where we must do things better. You’ll begin to see routine reports from me through email and our BNN channel, giving you timely updates of what I’m seeing and hearing on the ground from our teammates and our stakeholders.” This promise of open communication is seen as a crucial element in rebuilding trust and fostering a collaborative environment within Boeing​ .

A Hands-On Leader for Troubled Times

Kelly Ortberg’s appointment as Boeing’s CEO is seen as a strategic move to steer the company through a period of significant turbulence. Known for his hands-on approach, Ortberg is expected to bring much-needed stability and a renewed focus on quality and safety. His tenure at Rockwell Collins demonstrated his ability to address both strategic and operational challenges effectively, a trait that Boeing desperately needs as it navigates its current crises.

Ortberg’s reputation for being on the factory floor and engaging directly with employees has already started to instill confidence within Boeing. “Kelly is a person who will do that,” said Don Beall, former CEO of Rockwell International. “He’s a very hands-on guy. He’ll get out on the shop floor.” This approach is crucial for Boeing, as it has faced significant issues with production delays and quality control that have tarnished its reputation and strained its finances.

His immediate predecessor, David Calhoun, also emphasized Ortberg’s suitability for the role. “Kelly’s leadership style and industry expertise make him uniquely qualified to lead Boeing during this critical time,” Calhoun stated. Ortberg’s focus on building strong teams and running complex engineering and manufacturing companies aligns with the needs of Boeing as it seeks to restore its standing in the aerospace industry.

Ortberg’s background in engineering and deep understanding of aerospace manufacturing processes position him well to address the intricate challenges Boeing faces. Alan Mulally, former head of Boeing’s commercial business, highlighted Ortberg’s experience: “Kelly was key in developing the cockpit for the 777 and 787 jetliners—from flight control to vision systems to maps. This required him to navigate the needs of Boeing, suppliers, pilots, regulators, and air traffic officials.”

Moreover, Ortberg’s commitment to a hands-on leadership style extends beyond his interactions with employees. His strategic vision includes leveraging his deep industry relationships to rebuild trust with customers and regulators. “In speaking with our customers and industry partners leading up to today, I can tell you that without exception, everyone wants us to succeed. In many cases, they need us to succeed,” Ortberg emphasized in his message to employees. This network of support is critical as Boeing works to overcome its current challenges and position itself for future success.

Industry analysts have also noted Ortberg’s potential to bring about meaningful change at Boeing. “You couldn’t ask for a better selection,” aviation analyst Richard Aboulafia told Flightglobal. “His experience and leadership style are exactly what Boeing needs to navigate through these troubled times and emerge stronger.”

Ortberg’s early decisions, such as choosing to base himself in Seattle to be closer to the production lines, signal his commitment to understanding and addressing the company’s core issues firsthand. This decision is seen as a move to bridge the gap between Boeing’s leadership and its manufacturing workforce, fostering a culture of collaboration and accountability.

Kelly Ortberg’s hands-on leadership and deep industry expertise are critical assets in Boeing’s effort to navigate its current challenges and rebuild its reputation as an industry leader. His approach is expected to drive the company towards a more stable and prosperous future, focusing on quality, safety, and operational excellence.

Strategic Vision and Commitment to Quality

Kelly Ortberg’s strategic vision for Boeing is rooted in his commitment to restoring the company’s reputation for quality and safety. His message to employees underscored the importance of these values, emphasizing that Boeing’s success hinges on its ability to deliver high-quality, safe products. “Restoring trust starts with meeting our commitments—whether that’s building high-quality, safe commercial aircraft, delivering on defense and space products, or servicing our products to keep our customers running 24/7,” Ortberg wrote.

Ortberg’s strategic vision also includes a renewed focus on collaboration and transparency. He has pledged to keep employees informed through regular updates, sharing progress and improvement areas. “I will be transparent with you every step of the way, sharing news on progress as well as where we must do things better,” he stated. This approach is expected to foster a culture of accountability and continuous improvement, which is crucial for Boeing as it addresses its current challenges.

In addition to improving internal processes, Ortberg is focused on strengthening relationships with customers and industry partners. “In speaking with our customers and industry partners leading up to today, I can tell you that everyone wants us to succeed without exception. In many cases, they need us to succeed,” he emphasized. This support network is critical as Boeing works to overcome its current issues and rebuild trust within the industry.

Ortberg’s commitment to quality is further demonstrated by his decision to be based in Seattle, close to the commercial airplane programs. “I plan to be based in Seattle near the commercial airplane programs. I’ll be on the factory floor in Renton today, talking with employees and learning about challenges we need to overcome,” he mentioned in his message. This hands-on approach is expected to help identify and resolve production issues more effectively, ensuring that Boeing’s products meet the highest quality and safety standards.

Former colleagues and industry analysts have praised Ortberg’s focus on quality and strategic vision. “Kelly is not the kind of person to shoot from the hip. He’s deliberate and thorough, which is exactly what Boeing needs right now,” said Andrew Policano, a former business-school dean who worked closely with Ortberg at Rockwell Collins. Aviation analyst Richard Aboulafia echoed this sentiment, stating, “His experience and leadership style are exactly what Boeing needs to navigate through these troubled times and emerge stronger.”

By prioritizing quality, transparency, and collaboration, Ortberg aims to steer Boeing towards a more stable and prosperous future. His strategic vision and hands-on leadership are expected to drive meaningful change within the company, restoring its reputation as a leader in the aerospace industry.

Addressing Cultural and Operational Challenges

Kelly Ortberg’s appointment as Boeing’s CEO comes at a time when the company faces significant cultural and operational challenges. One of the most pressing issues is Boeing’s internal culture, which has been described as overly focused on production at the expense of quality and safety. This “push, push, push, go, go, go” mentality has been identified as a contributing factor to the company’s recent problems, including the two fatal 737 MAX crashes. Ortberg acknowledges these challenges and is determined to address them head-on.

“Our culture must evolve to prioritize safety and quality above all else,” Ortberg wrote in his message to employees. “We must create an environment where employees feel empowered to speak up about potential issues without fear of retribution.” This commitment to fostering an open and transparent culture is seen as a crucial step in rebuilding trust both within the company and with external stakeholders.

To facilitate this cultural shift, Ortberg plans to spend significant time on the factory floors, engaging directly with employees. “I’ll be on the factory floor in Renton today, talking with employees and learning about challenges we need to overcome, while also reviewing our safety and quality plans,” he stated. This approach is reminiscent of his time at Rockwell Collins, where he was known for his hands-on leadership style and for being deeply involved in the day-to-day operations.

Former colleagues have expressed confidence in Ortberg’s ability to transform Boeing’s culture. “Kelly is a very hands-on guy. He’ll get out on the shop floor and work directly with employees to understand their challenges and find solutions,” said Don Beall, former CEO of Rockwell International. This leadership style is expected to help bridge the gap between management and the workforce, fostering a more collaborative and supportive environment.

In addition to cultural changes, Ortberg is also focused on operational improvements. Boeing has been grappling with production delays, quality lapses, and increased scrutiny from regulators. “We need to get back to basics,” Ortberg emphasized. “This means ensuring that our production processes are efficient and that our products meet the highest standards of quality and safety.” He has already begun reviewing the company’s safety and quality plans, with a particular focus on addressing the issues that have led to recent production mishaps.

Industry experts believe that Ortberg’s experience and approach will be instrumental in driving these operational improvements. “Kelly’s deep understanding of the aerospace industry and his commitment to quality make him well-suited to tackle Boeing’s current challenges,” said Alan Mulally, former head of Boeing’s commercial business. By focusing on both cultural and operational changes, Ortberg aims to steer Boeing through its current crisis and set the company on a path to long-term success.

Overall, Kelly Ortberg’s comprehensive strategy to address Boeing’s cultural and operational challenges reflects his commitment to restoring the company’s reputation and ensuring its future stability. With his hands-on leadership and focus on transparency, safety, and quality, Ortberg is poised to lead Boeing through this critical period in its history.

Union and Workforce Impact

Kelly Ortberg’s leadership at Boeing is set to have a significant impact on the company’s unionized workforce. Boeing’s labor relations have been strained in recent years, particularly with the International Association of Machinists and Aerospace Workers (IAM), which represents a large portion of the company’s employees. The union has raised concerns about job security, working conditions, and the company’s approach to production and safety standards.

Ortberg’s message to employees highlighted his commitment to improving these relations. “I plan to engage directly with our union representatives to ensure that we are addressing their concerns and working collaboratively towards our common goals,” Ortberg wrote. This direct engagement is seen as a positive step towards rebuilding trust and fostering a more cooperative relationship between Boeing’s management and its workforce.

Union leaders have expressed cautious optimism about Ortberg’s appointment. “We are hopeful that Kelly Ortberg’s hands-on approach and his focus on safety and quality will lead to meaningful improvements in our working conditions,” said John Holden, President of IAM District 751. “We look forward to working with him to address the issues that have been affecting our members.”

One of the immediate challenges Ortberg faces is addressing the potential for a strike by IAM members. The union has been vocal about its demands for better job security and a commitment from Boeing to maintain production in the Seattle area. “Our members are prepared to take action if necessary, but we are optimistic that we can reach an agreement with the new leadership,” Holden added.

Ortberg’s decision to be based in Seattle and his plans to spend significant time on the factory floors have been well received by the union. “Having the CEO close to the production lines and understanding our day-to-day challenges is crucial,” said Mike Mulligan, a machinist at Boeing’s Renton facility. “It shows that he is serious about addressing our concerns and making improvements.”

The impact of Ortberg’s leadership on Boeing’s workforce extends beyond the unionized employees. His focus on transparency and open communication is expected to foster a more inclusive and supportive workplace culture. “I will be transparent with you every step of the way, sharing news on progress as well as where we must do things better,” Ortberg promised in his message to employees. This commitment to transparency is aimed at building trust and ensuring that all employees feel valued and heard.

Kelly Ortberg’s approach to labor relations and workforce engagement is set to play a crucial role in Boeing’s turnaround. By prioritizing direct engagement with union representatives, addressing key concerns, and fostering a culture of transparency and collaboration, Ortberg aims to rebuild trust and create a more positive working environment for all Boeing employees.

Financial Outlook and Market Response

The appointment of Kelly Ortberg as Boeing’s new CEO has had a notable impact on the company’s financial outlook and the market’s response. Ortberg’s reputation as a strategic thinker with a hands-on approach has instilled confidence among investors and industry analysts alike. As Boeing navigates through its turbulent times, Ortberg’s leadership is seen as a potential catalyst for the company’s recovery.

In the immediate aftermath of the announcement on July 31, 2024, Boeing’s stock saw a modest uptick. Market analysts attribute this rise to Ortberg’s track record at Rockwell Collins, where he successfully led the company through significant growth and transformation. “Ortberg’s experience in turning around Rockwell Collins makes him an ideal candidate to steer Boeing through its current challenges,” said Richard Aboulafia, an aviation analyst at Teal Group. “Investors are cautiously optimistic about his ability to replicate that success at Boeing.”

Financial experts are closely monitoring Ortberg’s strategy to address Boeing’s ongoing issues, including production delays and quality control problems. “Boeing’s financial performance has been underwhelming, with substantial operating losses in recent quarters,” noted Sheila Kahyaoglu, an aerospace and defense analyst at Jefferies. “However, Ortberg’s commitment to quality and operational efficiency could help reverse this trend.”

In his initial message to Boeing employees, Ortberg emphasized the importance of meeting commitments and restoring trust. “Restoring trust starts with meeting our commitments,” Ortberg wrote. “Whether that’s building high-quality, safe commercial aircraft or delivering on defense and space products, our success depends on our ability to deliver what we promise.” This focus on reliability and customer satisfaction is expected to resonate well with Boeing’s clients and stakeholders, potentially leading to improved financial performance in the coming quarters.

The market response has been tempered by the acknowledgment of the significant challenges ahead. Boeing’s recent financial results have highlighted the depth of the company’s issues, with an operating loss of $1.4 billion in the second quarter of 2024. “The financial recovery of Boeing will be a marathon, not a sprint,” said Peter Arment, an analyst at Baird. “Ortberg’s leadership is a positive step, but it will take time for the company to regain its footing and achieve sustainable profitability.”

Ortberg’s decision to relocate to Seattle and focus on the commercial airplane programs is also seen as a strategic move to be closer to Boeing’s core operations. “Being based in Seattle allows Ortberg to have a direct line of sight into the production challenges and to engage with the workforce more effectively,” said Ron Epstein, an aerospace analyst at Bank of America Merrill Lynch. “This hands-on approach is crucial for addressing the issues that have plagued Boeing’s production lines.”

While the road to recovery for Boeing is fraught with challenges, the appointment of Kelly Ortberg as CEO has injected a sense of cautious optimism among investors and industry stakeholders. His focus on transparency, quality, and operational efficiency, coupled with his hands-on leadership style, is expected to drive positive changes within the company. “We have what it takes to win, and I’m committed to working with you to focus the company in a way that makes us all proud to be a part of Boeing,” Ortberg stated in his message to employees. As Boeing embarks on this new chapter under Ortberg’s leadership, the market will be watching closely to see how his strategies unfold and impact the company’s financial trajectory.