At a critical turning point in the global aviation industry,$Boeing (BA.US)$The company is facing a dual crisis of finance and trust. In response to these challenges, the company is determined to undergo a profound reform and has specifically appointed Kelly Ortberg as the new helmsman to lead the company's transformation.

Boeing's stock price has fallen more than 24% this year, with expectations of the worst annual performance since 2020. An accident on January 5th has put more pressure on the company. As the new CEO, Kelly Ortberg's primary task is to restore confidence in airlines, US regulators, and the public, and to continuously improve the production line.

Boeing's financial situation is very tense. In its recent financial report, Boeing announced a cash consumption of up to 4.33 billion US dollars in the second quarter. This figure highlights the company's cash outflow pressure again after the first quarter. CFO Brian West warned that Boeing will continue to face pressure on cash outflow in the third quarter after consuming more than $1 billion per month since the first half of the year, and the total cash consumption for the year cannot be predicted. Without the recent $10 billion financing obtained, Boeing may have already been in a serious financial crisis. The company urgently needs to improve its operations, otherwise it will be difficult to continue borrowing or maintaining a good credit rating.

Boeing also faces problems in its defense and space department. Since mid-2023, the losses of this department have reached as high as 1 billion US dollars, mainly due to the significant increase in the cost of transforming two 747 airliners into the next generation of Air Force One. These setbacks not only highlight Boeing's difficulties in the commercial sector, but also expose its operational problems in the defense department.

In this context, Kelly Ortberg's appointment is particularly critical. He is well-known for his unique vision and frank and pragmatic management style as a transactional matchmaker at aviation supplier Rockwell Collins. He demonstrated his rapid and precise decision-making ability by completing the first major acquisition just 11 days after taking over as CEO. This style and ability is exactly what Boeing needs now.

Aviation analyst Nick Cunningham emphasizes:

"Boeing urgently needs a corporate doctor who can delve into the core of the problem, expose all the truth, take decisive action and guide the company to a successful transformation."

It is worth noting that Kelly Ortberg was one of the few executives who dared to publicly criticize Boeing. In 2016, after Boeing suddenly extended payment terms from 30 days to up to four months, squeezing the capital of its suppliers, Ortberg publicly accused Boeing of "withholding" payments.

Boeing Chairman Steve Mollenkopf speaks very highly of Ortberg, stating: "Kelly is a senior leader widely respected in the aviation industry." To ensure that Ortberg can fully exert his leadership, Boeing has specifically waived the mandatory retirement age limit of 65, which is the same treatment given to former CEO Calhoun in 2021.

After a leadership restructuring, Boeing also underwent industry integration and sold its aviation business in Cedar Rapids, Iowa to United Technologies Corporation, which later merged with the company to form RTX. This deal set the record for the largest acquisition in the history of the aviation industry.$RTX Corp (RTX.US)$The merger of companies formed the current RTX. This trade set the record for the largest acquisition in the history of the aviation industry.

Current CEO Dave Calhoun plans to continue to serve as a special advisor until March 2025. As part of his resignation plan, Boeing appointed Stephanie Pope as the new leader of its commercial aviation division earlier this year. The 52-year-old Pope is considered the most promising internal CEO candidate and is expected to become the company's leader in the future.

Editor/ping