Boeing names new CEO amid ongoing crisis
Boeing will appoint Robert "Kelly" Ortberg as its new CEO, the company said on Wednesday. The announcement comes months after current CEO Dave Calhoun announced plans to step down by year's end amid a shake-up at the company stemming from its ongoing manufacturing crisis. Ortberg begins Aug. 8.
Ortberg, 64, is a longtime aerospace industry veteran but a newcomer to Boeing.
Ortberg joined Rockwell Collins, a major aerospace component manufacturer and Boeing supplier, as a program manager in 1987. He rose through the ranks and became CEO in 2013. He ushered the company through a 2018 merger with United Technologies, which eventually led to it being absorbed by RTX, formerly known as Raytheon. He retired as CEO of RTX subsidiary Collins Aerospace in 2021.
He began his career as an engineer at Texas Instruments as an engineer, holds a bachelor's degree in mechanical engineering and is a former chair of the Aerospace Industries Association Board of Governors.
Ortberg assumes the lead at Boeing at a fraught time for the U.S. plane-maker.
Boeing has spent nearly the entirety of 2024 in crisis following the Jan. 5 decompression aboard an Alaska Airlines 737 MAX 9 that occurred when a door plug fell from the aircraft, leaving a hole in the fuselage. The subsequent investigation showed that the piece was removed and reinstalled by Boeing workers without crucial bolts to hold it in place during manufacturing. The pilots landed the plane a few minutes later without serious injuries among any passengers or crew members.
Read more: What to know about the Boeing 737 MAX 9 and the MAX series
The incident reopened intense scrutiny of Boeing that was mostly dormant since the 737 MAX reentered service in late 2020 following a 20-month global grounding of the fleet after the second of two fatal crashes. Public attention refocused on the plane-maker's safety and quality control processes, while everything from insignificant and routine maintenance issues to more serious mechanical issues generated breaking news headlines amid hyperfocus on air travel during the first few months of the year.
Boeing was already struggling to increase its production rates on its commercial airplane manufacturing lines, particularly the 737 MAX, when the latest crisis hit. Boeing lowered its production rates during a "safety stand-down" in order to develop and institute a new safety management process. The company is trying to reach its previous production target of 38 MAX jets per month and then increase from there, although the Federal Aviation Administration said it would have to approve rate increases beyond that initial target.
Boeing has also struggled with new aircraft, with ongoing development and certification delays of its new 777X wide-body program, along with the 737 MAX 7 and 10 — the smallest and largest variants of its narrow-body program. Earlier this month, the FAA cleared Boeing to begin its certification-proving flights with the 777X, a major step toward bringing the jet to market.
Calhoun took over as CEO in early 2020 during a prolonged grounding of the global 737 MAX fleet. The grounding, which ultimately lasted for 20 months, began after two separate crashes involving the then-new 737 MAX, one in 2018 and one in 2019, killed a combined 346 people. Before becoming CEO, Calhoun was the chairman of Boeing's board.
In March of this year, facing mounting pressure amid the crisis, Calhoun announced that he would step down at the end of the year. Boeing Commercial Airplanes chief Stan Deal left his post immediately. Deal was replaced by Stephanie Pope, a Boeing veteran. Pope was considered a possible internal candidate for the overall CEO role.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.