United Airlines CEO Scott Kirby Expresses Renewed Confidence in Boeing After Meeting New CEO Kelly Ortberg

United Airlines CEO Scott Kirby has voiced renewed optimism about Boeing’s future following a recent meeting with the aerospace manufacturer’s new CEO, Kelly Ortberg. This marks a significant shift in tone from one of Boeing’s top customers, who has been notably critical of the company’s recent struggles, particularly with delayed aircraft deliveries

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Updated August 16, 2024 03:49 a.m. ET
United Airlines CEO Scott Kirby Expresses Renewed Confidence in Boeing After Meeting New CEO Kelly Ortberg
Jonathan Wong
United Airlines CEO Scott Kirby has voiced renewed optimism about Boeing’s future following a recent meeting with the aerospace manufacturer’s new CEO, Kelly Ortberg. This marks a significant shift in tone from one of Boeing’s top customers, who has been notably critical of the company’s recent struggles, particularly with delayed aircraft deliveries.

Kirby and Ortberg met for lunch earlier this week in the Dallas area, and the conversation left Kirby with a positive outlook on Boeing’s recovery trajectory. “I was not only encouraged by what I heard, but I also came away with a renewed confidence that Boeing is on the right path and will recover faster than most expect,” Kirby shared in a LinkedIn post on Thursday.

United Airlines, which currently has 484 unfilled orders with Boeing, has been among the most vocal about the manufacturer’s production delays. These delays have significantly impacted airlines like United, which rely on timely aircraft deliveries to meet their operational needs. However, Kirby’s recent remarks suggest a growing confidence in Boeing’s ability to overcome these challenges under Ortberg’s leadership.

Ortberg, who took over as Boeing’s CEO just a week ago, brings with him over three decades of experience in the aerospace industry, including his tenure as CEO of Rockwell Collins, a major commercial and defense supplier. Ortberg has already made a strong impression by spending part of his first day on the job at Boeing’s 737 factory in Renton, Washington, signaling his commitment to being closely involved with the company’s frontline teams.

“His engineering background at Rockwell Collins, combined with an instinct to be close to his frontline teams in Seattle, makes for a winning combination,” Kirby wrote. “It was clear from our discussion that he’s 100% engaged, understands the cultural changes needed to turn things around, and is committed to listening to his employees and customers.”

Boeing has faced a series of challenges in recent years, most recently the incident involving a door plug blowout on an Alaska Airlines 737 Max 9, which occurred due to missing bolts that were supposed to secure the door plug. While there were no serious injuries, the event was part of a broader pattern of manufacturing issues that have plagued the company. These issues have led to production delays and safety concerns, straining relationships with key customers like United Airlines.

Kirby’s praise for Ortberg is noteworthy given that not long ago, he had been calling for a new competitor to challenge Boeing’s dominance in the U.S. aerospace industry, particularly in light of the company’s recent troubles. However, his latest comments suggest a shift in perspective, as he now appears more hopeful about Boeing’s ability to regain its footing under Ortberg’s leadership.

“Boeing’s 170,000+ employees have the expertise, drive, and commitment to get the company back to being one of the best and most important brands in the world,” Kirby stated. “And Kelly is the right leader to take them there.”

Ortberg has been actively engaging with Boeing’s major customers and industry partners, emphasizing his commitment to restoring the company’s reputation and operational excellence. In a note to Boeing employees on his first day, Ortberg highlighted the importance of collaboration and the company’s critical role in the industry. “In speaking with our customers and industry partners leading up to today, I can tell you that without exception, everyone wants us to succeed,” Ortberg wrote. “In many cases, they NEED us to succeed.”

This renewed confidence from a major customer like United Airlines is a crucial vote of support for Boeing as it works to address its recent challenges and regain the trust of the industry. The positive feedback from Kirby, coupled with Ortberg’s hands-on approach and deep industry experience, suggests that Boeing may be on a more solid path to recovery than previously anticipated.