Source: Fortune
Summary
Boeing’s CEO Kelly Ortberg has led the company’s turnaround since his appointment in August 2024. Despite initial challenges, including a mechanics strike and supply chain issues, Ortberg has managed to revamp manufacturing safety measures, improve quality and reliability, and increase production of the 737 Max. The company is expected to reach $10 billion in free cash flow, and Ortberg has won praise from airline customers. However, Boeing still faces challenges, including labor negotiations and the development of a new plane to compete with Airbus.
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The numbers tell one story. Boeing’s turnaround under Kelly Ortberg has been swift and impressive. Ortberg’s focus on quality, reliability, and on-time delivery has paid off, with the FAA lifting the cap on 737 Max production. The company’s defense and space division has also turned profitable. However, challenges remain, including ongoing supply chain and quality issues. The big question is whether Ortberg will move fast enough to develop a new plane to compete with Airbus. Boeing’s future depends on it.
Ortberg’s approach has been methodical and systematic, with a focus on tying pay and promotions to how people treat and respect one another. He’s a good listener with high EQ, and his people skills have set the template for a new tone at Boeing. The company’s contract with its 16,000 engineers is expiring, and a new agreement will be crucial to avoiding a lengthy strike.
Ortberg’s own people skills have been key to the turnaround. He’s a seasoned engineer who knows how to make money. His approach calls for big improvements in quality, reliability, and on-time delivery. Boeing’s heading to $10 billion in free cash flow, and the company’s aiming higher. But the big question is whether Ortberg will move fast enough to develop a new plane to compete with Airbus.
The announcement sounds familiar. Boeing’s turnaround under Kelly Ortberg has been swift and impressive, but challenges remain. The company’s future depends on developing a new plane to compete with Airbus. Ortberg’s approach has been methodical and systematic, but the big question is whether he’ll move fast enough.
Author: Evan Null
