After years of crisis
Industry veteran Kelly Ortberg becomes new Boeing CEO
31.07.2024, 15:23
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Boeing has been at the center of scandals for years. CEO Calhoun has therefore had to vacate his post. His successor comes from a large supplier company.
US aircraft manufacturer Boeing has introduced 64-year-old Kelly Ortberg as its new boss. He previously headed the major supplier Rockwell Collins, among others. After a series of mishaps, Boeing is under pressure to improve quality controls. Only then will the Airbus competitor be able to expand production of its important Boeing 737 model.
Last quarter, Boeing missed Wall Street’s expectations: Sales were below analysts’ estimates – and at the same time, losses were higher. Nevertheless, the share price temporarily rose by more than three percent in premarket trading after Ortberg’s appointment. He is set to take over the leadership on August 8. His predecessor, Dave Calhoun, had previously announced his retirement by the end of the year.
Boeing has been in a permanent crisis since the crashes of two 737 Max jets that killed 346 people more than five years ago. A more than 20-month ban on takeoffs for the aircraft in the series and problems with other models have thrown the manufacturer far behind its European rival Airbus.
Boeing sales on the decline
When a fuselage part broke off an almost new 737-9 Max from Alaska Airlines at the beginning of this year, the US aviation authority FAA took action. Boeing is currently not allowed to expand production of the entire 737 series beyond 38 aircraft per month. Boeing wanted to go up to 50 aircraft per month in order to reduce delivery backlogs. Airlines such as Southwest and Ryanair have now had to scale back their plans to expand capacity.
In the last quarter, deliveries in the commercial aircraft division fell by 32 percent year-on-year to 92 aircraft. Revenues shrank by a similar amount to six billion US dollars. In addition to quality and production problems with civil aircraft, Boeing is struggling with headwinds in the aerospace and defense business.
Group-wide, sales fell by 15 percent to just under 16.9 billion US dollars (15.57 billion euros). Analysts had expected an average of over 17.4 billion US dollars. The bottom line is that Boeing posted a loss of 1.44 billion US dollars in the last quarter – after a loss of 149 million US dollars a year earlier.