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A new chief executive took over at Boeing<\/a> on Thursday, and he began by walking the floor of the factory near Seattle that has become the heart of the aerospace giant\u2019s troubles.<\/p>\n Robert \u201cKelly\u201d Ortberg takes the helm of a money-losing company that has agreed to plead guilty to conspiracy to commit fraud, is struggling fix its aircraft-manufacturing process, and can\u2019t bring two astronauts home from the International Space Station because of flaws in a spacecraft it built for NASA.<\/p>\n \u201cI\u2019m excited to dig in!\u201d Ortberg told employees on his first day in the job.<\/p>\n Boeing\u00a0announced Ortberg\u2019s selection<\/a>\u00a0just over a week ago, on the same day that it posted another huge loss: more than $1.4 billion in the second quarter, which was marked by a steep drop in deliveries of new airline planes, including the 737 Max.<\/p>\n The National Transportation Safety Board just wrapped up a two-day hearing on the 737 Max that suffered a blowout of a panel in the side of the plane during an Alaska Airlines flight in January. The board\u2019s investigators have interviewed workers at the 737 factory in Renton, Washington, who say they are under too much pressure to produce planes quickly, leading to mistakes.<\/p>\n During the hearing, a Federal Aviation Administration manager said the regulator has\u00a016 open enforcement cases<\/a>\u00a0against Boeing \u2014 three or four times the normal number \u2014 and half started since the door-plug blowout.<\/p>\n Ortberg, an outsider, will try to fix Boeing after the last two CEOs failed.<\/p>\n Dennis Muilenburg, a Boeing lifer, was\u00a0fired in 2020<\/a>\u00a0while the company was trying to convince regulators to let Max jetliners resume flying after crashes in 2018 and 2019 that killed 346 people. David Calhoun, a longtime Boeing board member and General Electric<\/a> executive, got the reworked Max back in the air but couldn\u2019t stem losses that now exceed $25 billion since the start of 2019. Calhoun announced in March that\u00a0he would step down<\/a>.<\/p>\n In a memo to employees on Thursday, Ortberg said, \u201cWhile we clearly have a lot of work to do in restoring trust, I\u2019m confident that working together, we will return the company to be the industry leader we all expect.\u201d<\/p>\n Boeing is a century-old aviation innovator with roots in Seattle, although the headquarters moved to Chicago and then to\u00a0the Washington, D.C., area<\/a>. The new CEO is planting a symbolic flag in the ground back in the Pacific Northwest.<\/p>\n \u201cBecause what we do is complex, I firmly believe that we need to get closer to the production lines and development programs across the company,\u201d Ortberg told employees. \u201cI plan to be based in Seattle so that I can be close to the commercial airplane programs. In fact, I\u2019ll be on the factory floor in Renton today, talking with employees and learning about challenges we need to overcome, while also reviewing our safety and quality plans.\u201d<\/p>\n The company declined to make Ortberg available for interviews.<\/p>\n Ortberg\u2019s name emerged relatively late in the CEO search. Boeing Chairman Steven Mollenkopf, who led the search, said Ortberg has a reputation for running complex engineering and manufacturing companies.<\/p>\n Analysts have generally been favorable too. Richard Aboulafia, a longtime analyst and consultant in the industry, said Ortberg is deeply respected \u201cand brings more hope for a better future than the company has enjoyed in decades.\u201d<\/p>\n Louie DiPalma, an analyst for William Blair & Co., said Ortberg will benefit from low expectations due to Boeing\u2019s depressed stock price \u2014 the shares were down 37% this year at the start of Thursday\u2019s session, reflecting Boeing\u2019s turmoil since the blowout.<\/p>\n \u201cBoeing\u2019s safety issues and cultural problems have been scrutinized under a microscope to such a degree that Ortberg will be viewed as a savior for progress that he may achieve,\u201d DiPalma wrote in a note to clients. He said Ortberg might lower some Boeing financial targets to emphasize quality, and believes investors will understand if he does.<\/p>\n One of Ortberg\u2019s top assignments will be fixing the manufacturing process and increasing production of Max jets, Boeing\u2019s best-selling plane. The FAA has limited Boeing to 38 per month since shortly after the Alaska Airlines blowout, but Boeing\u2019s top safety official said this week production isn\u2019t even that high \u2014 it\u2019s in the 20s per month.<\/p>\n Calhoun did finish one job before Ortberg took over: The company reached an agreement with the Justice Department last month to\u00a0plead guilty to conspiracy to commit fraud<\/a>\u00a0in connection with development of the Max. A federal judge in Texas will decide whether to approve the deal, which includes a fine of at least $244 million Boeing investing at least $455 million in quality- and safety-compliance programs. The deal would spare Boeing the ordeal of a public trial.<\/p>\n Boeing\u2019s defense and space unit is also struggling. It lost $913 million in the second quarter because of setbacks on fixed-price government contracts, including a deal to build two new Air Force One presidential jets.<\/p>\n<\/div>\n\nRecommended Newsletter: <\/strong>CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. Subscribe Now<\/a>.<\/div>\n