New Boeing boss Kelly Ortberg brings engineering background, aerospace roots
Adds source on Ortberg's plans to be based in Seattle in second paragraph, analyst comment in fifth paragraph and list of uninterested leaders; adds Breakingviews link
By Allison Lampert
July 31 (Reuters) -Kelly Ortberg, the former Rockwell Collins boss tapped to lead Boeing BA.N, has a background that threads a delicate needle for the planemaker - a company outsider untethered to Boeing's past, but an industry insider with anengineering background.
Ortberg willhave a lengthy to-do list when he comes out of retirement and starts onAug. 8. He plans to be based in Seattle where the 737 MAX and 777 jets are produced, a source familiar with the matter told Reuters, in an apparent nod to Boeing's engineering roots far from its Arlington head office.
He'll have to strengthen relations between Boeing and its airline customers, and earn trust with the regulators and lawmakers that have put the company under a microscope following a January 5 mid-air panel blowout that turned into a full-blown safety crisis.
Ortberg, a mechanical engineer, took over as head of key aerospace supplier Rockwell Collins in 2013 and steered the company's integration with United Technologies and RTX RTX.N until his retirement in 2021. Still, questionsremained about whether he would drive radical change favored by some politicians and industry analysts.
"While we hold Kelly in high regard, we note that it has been some time since he was a public company CEO, and as he is 64 it will probably fall to others to continue the work of fixing Boeing," said Vertical Research Partners analyst Rob Stallard.
Bob Jordan, CEO of Southwest Airlines LUV.N said the company looks forward "to working with Kelly Ortberg in his efforts to return Boeing to its place as the leading American aerospace company."
Ortberg also served as chair of the U.S. aerospace advocacy group Aerospace Industries Association (AIA) during the COVID-19 pandemic.
"I think Mr. Ortberg is likely a great choice for CEO. He has an impressive resume with an engineering background, which is crucial for operating in a complex technical environment," said Tony Bancroft, portfolio manager at Gabelli Funds, which holds shares of Boeing.
Industry insiders had previously hoped Boeing would hire someone on the younger side, in the expectation that it will take years to turn the company around. Ortberg is 64, however, and Boeing said it waived the mandatory retirement age of 65 just like it did for CEO Dave Calhoun, who is departing after a management shakeup earlier this year.
AeroDynamic Advisory analyst Kevin Michaels, who first met Ortberg at Rockwell Collins in 1996, said Ortberg is young-looking and energetic and he didn't see his age as a barrier for the top job.
“We all thought that he retired too young,” Michaels said.
Ortberg is said to have beaten out Boeing Commercial Airplanes CEO Stephanie Pope and Spirit AeroSystems SPR.N boss and former Boeing executive PatShanahan for the job.
“I think it’s a positive," said one portfolio manager that holds Boeing stock. "The narrative had been, 'I can’t believe only Boeing insiders wanted this job.'”
GE Aerospace CEO Larry Culp, Carrier Global CEO and Boeing board member Dave Gitlin and American Airlines Chairman and former Boeing CFO Greg Smith were seen as potential contenders but all indicated they were unwilling to be considered for the role, industry watchers said
Boeing had faced pressure from industry executives and U.S. lawmakers to choose new leadership with an engineering background and without lengthy ties to the company. Whether that is enough for lawmakers scrutinizing Boeing's operations remains to be seen.
"Mr. Ortberg is a mechanical engineer. 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," said Rep Rick Larsen, top Democrat on the House Transportation Committee who represents a district in Washington State home to major Boeing operations.
Analysts and acquaintances described Ortberg as being a good listener, honest and willing to take decisive action. "We believe during his leadership at Collins he was well liked by employees and direct reports and very personable," said Jefferies analyst Sheila Kahyaoglu in a note.
"This was while being a tough negotiator dealing with a diverse set of customers and suppliers and managing the complexity of its diverse customer base."
BREAKINGVIEWS-Boeing’s new CEO has vital copilot training to do nL4N3JN1T9
UPDATE 8-Boeing names Kelly Ortberg CEO to steer turnaround as cash burn rises nL4N3JN1JW
Reporting By Allison Lampert in Montreal. Additional reporting by Tim Hepher in Paris, Rajesh Kumar Singh in Chicago and David Shepardson in Washington. Editing by Nick Zieminski
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
