What’s going on here?

Boeing has appointed Kelly Ortberg as its new CEO, effective August 8, 2024.

What does that mean?

Kelly Ortberg begins his new role today with a strategy focused on restoring trust, boosting production and working directly with the workforce. He plans to be based in Seattle to stay close to key production lines, particularly the 737 MAX, which has seen a recent decline. Boeing faces significant challenges, from improving relationships with airlines and employees to increasing production from the current 25 jets a month to 38 by year-end. An in-flight panel blowout in January further underscored the need for quality control. Ortberg’s immediate actions include visiting factory workers in Seattle and key supplier Spirit AeroSystems in Wichita, Kansas, which Boeing recently agreed to buy back for $4.7 billion.

Why should I care?

For markets: A flight path to stability.

Investors are closely watching Ortberg’s moves to stabilize Boeing’s finances and avoid a possible worker strike. The goal of increasing production of the 737 MAX to 38 jets per month is critical to meeting demand and financial targets. The successful implementation of Ortberg’s strategies could boost market confidence and potentially boost Boeing’s share Perfomance.

For her: Trust is good, control is better.

Ortberg’s focus on quality and safety is critical to Boeing’s customers who depend on the reliability of the company’s aircraft. For those who have invested in or work with Boeing, the CEO’s direct involvement in day-to-day operations and workforce engagement is reassuring. This hands-on approach aims to quickly address and resolve operational challenges and underscores Boeing’s commitment to delivering high-quality, safe products.