The recently appointed CEO Kelly Ortberg’s decision to work from Boeing’s Seattle offices is a daring one that highlights a change in the company’s leadership style. Industry insiders have already praised this choice highly. With this decision, Boeing has strategically and symbolically returned to its origins in the Pacific Northwest, where it had its headquarters for 85 years before relocating to Chicago in 2001.
Ortberg, a mechanical engineering graduate and veteran of the aerospace industry, announced his move in a memo to employees on Thursday. He explained that he wanted to be nearer to the center of Boeing’s commercial aircraft operations, so he chose to locate 2,300 miles from the company’s current corporate headquarters in Arlington, Virginia. “Because what we do is complex, I firmly believe that we need to get closer to the company’s production lines and development programs,” Ortberg wrote. “I plan to be based in Seattle to be close to the commercial airplane programs.”
This choice comes at a crucial moment for Boeing, which has had some high-profile difficulties recently. Much of this unrest has been focused on the company’s 737 Max program, which involved two deadly disasters in 2018 and 2019 that were linked to aircraft design problems. Following these disasters, the 737 Max was grounded for 20 months, when authorities, airlines, and the general public closely monitored and criticized Boeing.
Boeing’s finances have been severely impacted; the corporation reported core operating losses of almost $33 billion in the most recent quarter alone. A door plug blowing off the fuselage of an Alaska Airlines 737 Max on January 5 is just one of Boeing’s quality control problems recently encountered. These difficulties exacerbated the idea that the company’s leadership needs to be more preoccupied with financial success at the expense of production quality and safety.
Richard Aboulafia, managing director at AeroDynamic Advisory and a long-time critic of Boeing management, has praised Ortberg’s decision to relocate to Seattle as a sign that the new CEO is committed to addressing these issues head-on. “It’s incredibly promising,” Aboulafia said. “It shows that he’s not afraid to go where the problems are and to put in some serious hard work solving them. The other great virtue of showing up is that you get an accurate picture of the situation, rather than news filtered through what people think you want to hear. He continues to look like the exact opposite kind of leader than the ones that plagued Boeing.”
Ortberg’s move to Seattle was an attempt to return Boeing to its primary objective of producing dependable, safe airplanes. Ortberg indicates that he plans to actively address the company’s ongoing problems by putting himself near the commercial aircraft manufacturing lines. His physical presence on the Renton, Washington, manufacturing floor, where the 737 Max is made, is proof of this dedication.
Renton, Washington, is located in King County and sits 12 miles from Seattle. It is just seven miles from Seattle-Tacoma International Airport, which is a hub for international travel.
Boeing has defended its decision to relocate its headquarters to Chicago and then Arlington in the past, pointing out that it also manufactures space and defense products. However, Ortberg’s move to Seattle has raised questions about whether Boeing would consider moving its entire headquarters back to the Pacific Northwest. Boeing has not yet offered to comment on any such intentions.
Ortberg’s choice to relocate to Seattle is a big step toward restoring confidence in Boeing’s commercial aircraft segment, regardless of the final location of the corporate headquarters. It implies a return to manufacturing quality and safety ideals, which have been scrutinized recently.
