Troubled Boeing names new boss for 'next chapter'

Boeing has named an aerospace industry veteran and engineer as its new chief executive as the troubled plane-maker looks for a turnaround.

Robert K "Kelly" Ortberg, a long-time leader at aircraft electronics supplier Rockwell Collins before his retirement in 2021, will start in the position next month, Boeing said.

He will replace Dave Calhoun, who announced plans to step down this spring, after the mid-air blowout of a piece of a new plane flown by Alaska Airlines reignited criticism of Boeing's manufacturing and safety record.

The announcement came as the firm reported deepening financial losses.

Boeing board chairman Steven Mollenkopf said Mr Ortberg had the "right skills and experience to lead Boeing in its next chapter".

"He is an experienced leader who is deeply respected in the aerospace industry, with a well-earned reputation for building strong teams and running complex engineering and manufacturing companies," he wrote in a letter to Boeing staff.

The 64-year-old, who started his career at Texas Instruments, is taking on a company struggling to repair its reputation, which was badly damaged after it was implicated in fatal crashes of two of its 737 Max planes more than five years ago.

It recently pleaded guilty to a fraud charge related to those tragedies, agreeing to a criminal fine of nearly $244m (£190m).

It continues to face other lawsuits and government probes sparked by the Alaska Airlines incident, as well as mounting financial losses.

On Wednesday, Boeing said it had lost $1.4bn between April and June, compared with a roughly $150m loss last year.

As well as the troubles in its commercial unit, the hole reflected increased costs in the company's defence business, which often involves fixed price contracts and has been hit by the sharp run-up in prices in recent years.

Mr Ortberg said he would put "safety and quality at the forefront" as he takes on the new role leading more than 170,000 people around the world.

"There is much work to be done, and I'm looking forward to getting started," he said.

Boeing's troubles have spilled over into the wider aerospace industry, contributing to significant delays in delivering new planes for airlines looking to expand routes and improve fuel efficiency.

Representative Rick Larsen, the senior Democrat on a key House Transportation Committee, wrote on social media that was "encouraged" to see the company appoint a mechanical engineer to the top role.

"I hope that means he will ensure that his top message for everyone is building the best airplane means building the safest airplane in the world," he said.

Boeing shares rose more than 1% after the announcement.

The company said Mr Calhoun will stay on as a special advisor to the board of directors until March 2025.