Boeing’s
new CEO, Kelly Ortberg, has removed the company’s space and defense chief, Ted Colbert, in one of his first moves to shake up management at Boeing. Ortberg became the Boeing president last month and
faces the challenge of repairing Boeing’s tarnished image
and changing alleged deep quality issues and organizational safety culture. The
United Airlines CEO had previously suggested in August that Boeing was on the right path
when it was considering making Kelly Ortberg as the new CEO.
Boeing’s chief of space and defense ousted
Ortberg stated on Friday that Ted Colbert would be leaving Boeing immediately and that Steve Parker (Boeing’s space and defense chief operating officer) would temporarily take over Colbert’s role until a replacement is named. This is Ortberg’s first major change to Boeing’s management after taking over as CEO of Boeing.
Photo: Boeing
It is unclear who the long-term replacement will be or how long Parker will stay in the role. Parker writes on his LinkedIn account, “Prior to his current role, Parker led the Bombers & Fighters division that included tactical and air dominance fighters to include the F/A-18E/F, EA-18G, and F-15E/EX, the T-7A training system, and strategic Bombers comprising the B-1, B-52 and in collaboration with Northrop Grumman the B-2.“
“At this critical juncture, our priority is to restore the trust of our customers and meet the high standards they expect of us to enable their critical missions around the world. Working together we can and will improve our performance and ensure we deliver on our commitments.” – Boeing CEO in an email to employees
Ted Colbert had previously worked for Citigroup and Ford Motor. He took over Boeing’s Defense and Space division in April 2022 (after the previous head of defense was ousted). Colbert has had 15 years working for Boeing, filling various roles over the years.
A seemingly endless bad streak
Boeing has been suffering a series of major crises that extend beyond its Boeing 737 Max
commercial airlines. Notably, in its space sector, Boeing has been rattled by the Boeing Starliner capsule, which was sent home without its astronauts after years of missteps in the program. According to Reuters, Starliner has cost Boeing some $1.6 billion in cost overruns since 2016.
Boeing has also lost billions on the “Air Force One” Boeing 747-8 Presidential aircraft replacements after accepting a fixed-price contract but then facing dramatic cost overruns.
Photo: Thiago B Trevisan l Shutterstock
Ongoing 737 MAX saga
In July, Boeing agreed to plead guilty to a criminal fraud conspiracy charge and pay at least $243.6 million for breaking its 2021 deferred prosecution agreement. The FAA has imposed increased oversight of Boeing, and the company has been barred from expanding its 737 MAX production beyond 38 planes monthly until significant safety and quality improvements are made. This has impacted the aviation industry and lengthened wait times for airlines to take delivery of new aircraft.