Boeing: Between Crisis Management and Cultural Change

Kelly Ortberg, the new CEO of Boeing, faces a monumental task: The traditional company, which once shaped modern aviation, is experiencing turbulent times. In his first encounter with investors, he made it clear that ending the strike of the largest union can only be the first step towards stabilizing the company. However, the path is rocky, as nearly two-thirds of the union members rejected the latest contract offer, prolonging the already six-week strike and costing Boeing $50 million per day. The corporation, which in the last five years has been marked by fatal plane crashes, a global flight ban, and pandemic-related losses, now faces a weakened financial position and a tarnished reputation. Analyst Ron Epstein from Bank of America compares Boeing’s situation to the Hydra of Greek mythology: 'No sooner is one problem solved than new ones arise.' Ortberg's challenges are manifold: besides the strike, it is necessary to motivate the workforce, convince investors of a capital increase, resolve manufacturing and quality control issues, and satisfy customers who have had to adjust flight schedules due to delivery delays. Despite all adversities, Scott Kirby from United Airlines sees a glimmer of hope in Ortberg: 'Kelly Ortberg is bringing Boeing back to its roots.' However, not everyone is convinced. Ken Ogren from the Engineers Union warns against empty promises regarding cultural change within the company. For Ortberg, however, it is clear that quality takes precedence over speed, even if it means missing production targets. He also plans to introduce a new aircraft model to remain competitive and motivate the workforce. According to Brian West, Boeing's CFO, the company will continue to burn substantial sums of money through 2025, but with a focus on long-term solutions. Experts see Ortberg’s engineering background as an advantage in navigating Boeing out of crisis mode and fundamentally changing the corporate culture. His move to Seattle already marks the first step in this direction.