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Boeing recorded a larger-than-expected loss in the second quarter. The leadership change at Boeing BA 2.82%increase; green up pointing triangle bodes well for the radical transformation that the plane maker requires. But outflying a troubled culture and growing debt pile will be tough.
On Wednesday, the Arlington, Va.-based manufacturer said Robert “Kelly” Ortberg will on Aug. 8 become its next chief executive and president, succeeding Dave Calhoun, who has served both roles since January 2020.
The stock rose in early trading as investors decided this news was enough to offset disappointing second-quarter results. A $1.4 billion net loss, compared with expectations of $913 million, was the result of Boeing’s building fewer commercial aircraft—quality issues slowed deliveries of the MAX, while supplier shortages affected the 787 Dreamliner—as well as losses in its defense programs.
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Kelly Ortberg inherits a troubled ‘go, go, go’ culture and a manufacturer burning through billions of dollars
Robert “Kelly” Ortberg was well known on Wall Street for striking big deals as the leader of Rockwell Collins. But back in Iowa, the aerospace executive was known for paying attention to issues that rarely made headlines, like the VIP spots in the company parking lot.
With little fanfare, Ortberg removed the assigned spaces for higher-ranking employees at the headquarters of Rockwell Collins. Brad Neilly, an employee, recalled how one Friday night he walked out of the building at the same time as Ortberg. The chief executive had parked even farther away from the building, “deep into the parking lot,” Neilly wrote on LinkedIn in 2021. “It was a little thing but had a big impact on me.”
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The Concorde has long been retired, but future skies may be filled with aircraft that can go even faster, criss-crossing the world in a matter of hours. Hypersonic engines that are being developed for military and government applications, like defense, drones and missiles, could one day propel future planes much faster than conventional engines for less money. Host Danny Lewis looks at the technical and business obstacles, and finds out what it would take to make hypersonic air travel a reality.
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Are the Skies Going Hypersonic?
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Jet-engine durability issues and the lack of spare parts are saddling the aviation industry.
Few industries do well when their products are forever being returned for early repairs. Jet-engine makers are currently an exception—and this is raising eyebrows.
Shares in RTX Corporation hit a record high last week after the aerospace conglomerate significantly beat second-quarter earnings forecasts. Excluding one-time effects, operating profit in its Pratt & Whitney engine-making division rose 23%. GE Aerospace also reported a surge in demand for spare parts for commercial engines, and its stock closed at a 16-year high last Tuesday. In Europe, jet-engine manufacturers Rolls-Royce and Safran are expected to post robust results when they report this week.
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