Kelly Ortberg Appointed CEO Amid Boeing's Crisis

Boeing has named Kelly Ortberg as its new President and CEO, a move aimed at reviving the company's beleaguered reputation and operational struggles. Ortberg, a seasoned aerospace executive, steps in following the fallout from a January incident and subsequent financial woes, including a significant quarterly loss and stagnant jet production.

Boeing has named aerospace industry veteran Kelly Ortberg as its new President and CEO, effectively tasking him with the monumental challenge of revitalizing the struggling planemaker. Ortberg, who previously served as a top executive at Rockwell Collins, will assume his role on August 8. He will face the daunting task of not only reviving jet production but also rebuilding trust with regulators and the public.

The announcement comes after a troubling period for Boeing, one of two global planemaking giants. The company has been grappling with a reputational and safety crisis, highlighted by a January 5 mid-air panel blowout on an Alaska Airlines-operated MAX 9 jet carrying 171 passengers. The incident resulted in the resignation of CEO Dave Calhoun and the departure of the company's previous board president. Further compounding the issue, Boeing reported a $1.4 billion loss for the quarter, exacerbated by ongoing cash flow problems.

In response to the January incident, the U.S. Federal Aviation Administration (FAA) placed a cap on Boeing's production of its 737 MAX jets at 38 units per month. Despite this, Boeing has been producing at lower levels during some weeks. The FAA has mandated that the company develop a comprehensive plan to address systemic quality-control issues, which was submitted in May. However, Boeing is still not permitted to increase 737 MAX production immediately. The company delivered only 92 aircraft in the second quarter, a 32% drop compared to last year, which further strained its finances. Boeing's troubled Defense, Space and Security unit also contributed heavily to the financial woes, losing billions over cost overruns on fixed-price contracts.

(With inputs from agencies.)