On Thursday, Kelly Ortberg, the new CEO of Boeing, revealed his plans to reside in Seattle and relocate closer to the factory in order to manage the security crisis.
On his first day of work on Thursday, Ortberg spent part of his time touring the factory in Renton, Seattle, where the 737 MAX jet is produced. He will have the mission to “restore trust”, as detailed in a message to employees.
“Because what we do is complex, I firmly believe we need to get closer to production lines and development programs across the company”, writes Ortberg in a letter.
The former Rockwell Collins leader will meet with suppliers, government officials and regulators. The aircraft manufacturer faces serious financial and operational problems that are expected to take years to resolve. Production and deliveries of the 737 MAX were impacted by an in-flight explosion on January 5, and manufacturing of the 787 Dreamliner fell to less than five units per month due to supply chain difficulties.
Ortberg's work includes increasing production of MAX jets from approximately 25 to 38 aircraft per month by the end of the year and securing a labor agreement to avoid a possible strike. While aviation executives are optimistic about his arrival, they are asking him to focus his efforts on plane deliveries in response to delays that have hampered airline planning.
Ortberg's next visit will be to Spirit AeroSystems in Wichita, Kansas, where he will meet with officials from the company's main supplier Boeing, according to information from executives of the companies involved. THE Boeing decided to repurchase the Spirit, which is facing financial problems and had its main plants spun off in 2005, for US$4,7 billion in shares.
In a message to employees, Ortberg said: “People’s lives depend on what we do every day.”
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