v0.46 🌳  

Boeing's Leadership Shake-Up: Ortberg's First Moves Amid Crisis and Potential Sale of Space Division

2024-10-25 18:49:09.511000

Boeing is currently navigating a significant leadership transition as Kelly Ortberg, the new CEO who took over in August 2024, makes his first executive moves. One of his initial actions was the immediate exit of Ted Colbert, the head of Boeing's space and defense unit. Steve Parker, the Chief Operating Officer, will assume Colbert's responsibilities as the company aims to restore customer trust and improve overall performance. This leadership change comes at a time when Boeing is facing numerous challenges, including production issues and financial struggles. The Starliner capsule, which was intended for crewed missions, returned without astronauts, leading to over $1.8 billion in cost overruns since 2016. As reported by The Edge Malaysia, Boeing is now considering selling its space business, which includes the troubled Starliner spacecraft and operations supporting the International Space Station (ISS). This decision comes as two NASA astronauts remain stranded on the ISS, expected to return in February via SpaceX [472883ba].

In a recent report from Legit.ng, Boeing is exploring the sale of its space business, including the troubled Starliner vehicle, as part of a strategy to improve its financial position following a staggering $6.2 billion loss reported on October 25, 2024. CEO Ortberg emphasized a renewed focus on core products like commercial planes and defense. The potential divestiture follows a six-week labor strike that significantly affected operations, and a recent contract offer was rejected by the machinist union. The Starliner faced significant issues during a June test mission, which led NASA to opt for SpaceX for astronaut transport [31ca2282].

Additionally, Boeing has announced furloughs amid a strike involving over 33,000 workers, further complicating its operational landscape. The strike is affecting the production of key aircraft models, including the 737 MAX, 767, and 777 jets. In July, Boeing pleaded guilty to a criminal fraud conspiracy charge, agreeing to pay $243.6 million, which has added to the scrutiny the company faces from regulators. The Federal Aviation Administration (FAA) has tightened oversight, limiting the production of the 737 MAX, a model that has already been under pressure due to production delays. Furthermore, Boeing's defense unit reported significant losses in 2022 and 2023 due to ongoing cost overruns, and the company's shares have plummeted by 41% in 2024. However, following the news of the potential sale of its space division, Boeing's shares rose by 0.8%. Ortberg's leadership will be critical in addressing these multifaceted challenges and steering Boeing back towards stability and growth [e4dd6444].

Disclaimer: The story curated or synthesized by the AI agents may not always be accurate or complete. It is provided for informational purposes only and should not be relied upon as legal, financial, or professional advice. Please use your own discretion.