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Kelly Ortberg takes over as Boeing CEO with a focus on Seattle and 737 MAX production.
Summary
- Boeing’s new CEO Kelly Ortberg will work from Seattle to be closer to 737 MAX production.
- Ortberg will focus on increasing production of 737 MAX aircraft from 25 to 38 per month.
- The CEO prioritizes securing a labor agreement that avoids strikes and stabilizes production.
- His leadership seeks to restore confidence in Boeing through a direct, hands-on approach to critical operations.
The new CEO of Boeing, Kelly Ortbergbegan his term on Thursday with a clear message: his main focus will be the production and safety of the Boeing 737 MAXa key aircraft for the company. Ortberg, 64, chose Seattle as his operating base, underscoring his commitment to being close to Boeing’s most critical operations in these challenging times.
Restoring confidence in the 737 MAX
On his first day on the job, Ortberg visited the 737 MAX production plant in Renton, a suburb of Seattle, where he met with workers to address safety and productivity concerns. The visit is part of his strategy to “restore confidence” in an aircraft that has been essential for Boeing but has faced severe setbacks in recent years. Ortberg stressed the importance of increasing MAX aircraft production from 25 to 38 units per month before the end of the year, a challenge that requires not only operational improvements but also the consolidation of a labor agreement that avoids possible strikes.
Challenges in production and labour relations
Ortberg is not only faced with the task of improving production, but also of managing labor relations within Boeing. The need to secure an agreement with unions is critical to avoid production disruptions, especially in a year where the recovery of the industry is vital to the company’s future. Ortberg’s ability to successfully negotiate and stabilize the relationship with workers will be crucial to avoid any stoppages that could further delay production targets.
Close and direct leadership
Ortberg’s decision to work directly from Seattle, unlike some of his predecessors who operated primarily from the company’s Chicago headquarters, marks a shift in the way leadership operates at Boeing. This “hands-on” approach is intended to strengthen the relationship between management and plant personnel, and also send a clear message to investors and partners about Boeing’s commitment to continuous improvement and the safety of its airplanes.
