Boeing Reforms Under CEO Kelly Ortberg
At a Senate Commerce Committee hearing on Wednesday, Boeing CEO Kelly Ortberg detailed the company’s sweeping safety and manufacturing reforms that follow a series of manufacturing and safety crises in both its commercial and defense units. In his first hearing as CEO since taking the helm last August, Ortberg acknowledged that Boeing had made serious missteps in recent years, and he outlined the measures the company is implementing to turn things around and restore public trust.
Ortberg testified that Boeing has implemented comprehensive changes across its people, processes, and overall structure in response to several accidents, including a near catastrophe last year. “Boeing has made serious missteps in recent years—and it is unacceptable,” he said, emphasizing that the deep commitment to safety underpins every decision the company makes. Although he expressed satisfaction with the progress being made, Ortberg also noted that there is still more work ahead to ensure that past mistakes are not repeated.
During the hearing, senators grilled Ortberg on how Boeing plans to maintain the stability of its production lines and prevent manufacturing defects. He pointed to recent improvements across the company’s production processes, such as reducing defects and mitigating risks from so-called “traveled works,” where tasks are completed out of sequence. These changes, according to Ortberg, are already showing results as the company works to improve its manufacturing processes and reduce potential risks in its production of aircraft.
A significant aspect of Boeing’s turnaround plan includes ongoing discussions with the Justice Department over a revised plea agreement concerning a federal fraud charge related to the development of the 737 Max aircraft. Ortberg explained that the company is in active negotiations to replace a previous plea deal—which involved pleading guilty to conspiring to defraud the U.S. government, paying up to $487.2 million, and accepting the installation of a corporate monitor for three years—that was ultimately rejected by a federal judge. “We’re in the process right now of going back with the DOJ and coming up with an alternate agreement,” he said, expressing his desire to resolve the matter swiftly.
Senator Ted Cruz, the committee’s chairman, made it clear that he wants Boeing to succeed. He even invited company managers and factory workers to share their views on Boeing’s turnaround plan, stating, “Consider my door open.” This bipartisan call for transparency underscores the high stakes involved, as Boeing is not only a leading American manufacturer but also a critical player in both the commercial and defense sectors.
Other improvements mentioned by Ortberg include positive developments on the production front, such as a recent contract win exceeding $20 billion to build the United States’ next-generation fighter jet. Despite these wins, the Federal Aviation Administration continues to monitor Boeing’s manufacturing practices closely. Last year, the FAA capped the production of the 737 Max at 38 aircraft per month following a series of setbacks. Although Boeing is now producing below that limit, Ortberg stated that the company could ramp up production to 38 units per month or even higher if the production line is stable.
Acting FAA Administrator Chris Rocheleau recently reiterated that the agency’s oversight extends to all aspects of Boeing’s operations, including maintenance procedures and software updates. As Boeing continues its journey toward a more reliable and transparent future, Ortberg’s testimony marks an important step in reassuring regulators, lawmakers, and the flying public that the company is committed to rebuilding its reputation and ensuring the safety of its products and services.
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Sources: AirGuide Business airguide.info, bing.com, cnbc.com