Kelly Ortberg, less than a week into his new role as Boeing CEO, paid Wichita a visit on Monday, touring the aerospace giant's biggest supplier, as well as WSU Tech's National Center for Aviation Training.
The former Rockwell Collins CEO got a first-hand look at Spirit AeroSystems, the city's biggest employer and the company that Boeing aims to acquire through a $8.3 billion agreement announced earlier this summer. He then toured NCAT — a facility that has been held up by state and local officials as an example of the Air Capital's ability to deliver skilled talent for the industry.
It seems the visit — which came at the invitation of Sen. Jerry Moran (R-Kan.) and included Boeing chairman Steven Mollenkopf — went well.
"I asked (Mollenkopf) what...his takeaway was. He said, 'I'm incredibly impressed with the workforce and we are here to stay,'" Moran told reporters following the tour. "(Ortberg) said he was 'super impressed' and 'looking forward to the future.'"
Moran, who noted Boeing is still early in the acquisition process, said it was important for Boeing to see first-hand the value of the workers and aerospace supply chain in Kansas and Wichita.
Ortberg and Mollenkopf did not take media questions or provide public comments during Monday's visit.
Many state and local political leaders — and other prominent community figures — attended the NCAT visit, including Gov. Laura Kelly (D), Wichita mayor Lily Wu, Sedgwick County Commission chairman Ryan Baty, additional members of the City Council and Commission, Wichita State president Rick Muma and WSU Tech president Sheree Utash.
Muma said it was key to show Boeing's leaders what Wichita can offer through facilities like NCAT that were not here when Boeing (NYSE: BA) spun off Spirit (NYSE: SPR) two decades ago.
"That was met with lots of enthusiasm," Muma said.
The visit comes on the heels of Boeing and Spirit — and their workforces — being in the spotlight last week, as the National Transportation Safety Board held a two-day investigative hearing on the Jan. 5 incident in which a Boeing 737 Max 9 lost a door-plug panel minutes after takeoff.
Both Boeing and Spirit officials testified over the course of the 20-hour proceedings where the two companies' quality and safety processes were heavily scrutinized.
Top Boeing executives have said bringing back Spirit into its fold is a key piece of improving manufacturing processes. The deal is expected to close in mid-2025.
In a message to Boeing employees last Thursday, his first day as CEO replacing Dave Calhoun, Ortberg gave a glimpse of his approach at the helm.
"Restoring trust starts with meeting our commitments — whether that’s building high quality, safe commercial aircraft, delivering on defense and space products that allow our customers to meet their mission, or servicing our products to keep our customers running 24/7," he wrote. "It also means meeting our commitments to each other and working collaboratively across Boeing to meet our goals. People’s lives depend on what we do every day, and we must keep that top of mind with every decision we make."
Spending more time on the factory floor looks to be a high priority for Ortberg. He spent his first day on the job at Boeing's Renton, Wash., facility.
Ortberg will also be based out of the Seattle area, close to the company's commercial operations.
The Wichita trip comes a month after Moran told the WBJ, in the days after the Boeing-Spirit deal was announced, that he had invited Mollenkopf and former CEO Calhoun to Wichita — and that the invite had been accepted.
Moran and other local leaders have said Boeing has much to prove to the city it once left. In addition to its commercial operations departing in the 2000s, Boeing closed its defense operations in Wichita in 2013.
The senator has said before that "Boeing has a fractured history in Wichita."
On Monday, Moran reiterated Boeing had work to do, but that the day's visit was a key step.
"Building trust is when you know somebody, you know them well, you treat them with respect," said Moran, who added that the Boeing acquisition has been largely well-received by Spirit workers he's talked to. "And what I saw today is a suggestion that that is the case with the new CEO. But trust is a long-term circ*mstance. You can't have trust in somebody one day and not the next. And so what we look forward (to) is this solid, working relationship with Boeing, treating their employees well and with respect. And it's making certain that the community in Wichita and across this part of Kansas, as well as our state, sees them as a good citizen, caring about their neighbors and caring about others in the community."
The selection of Ortberg, who has more than 35 years of industry experience, has been widely praised by industry observers. Patrick Shanahan, Spirit CEO since last fall, had been speculated as a top name for the Boeing CEO job.
Spirit, which employs around 12,800 workers in Wichita, has work on all Boeing commercial programs.
Both the company Ortberg has now joined, and the one it wants to acquire, have been battling financial challenges largely tied to a slowdown in 737 Max production and deliveries following the January accident.
Boeing reported a net loss of $1.44 billion in the second quarter, while it burned $4.3 billion in cash. Last Monday, Spirit said it burned $597 million in cash in Q2 and lost $415 million.
While Spirit's significant amount of commercial work for Boeing garners heavy focus, questions also exist about what will happen under Ortberg's leadership to Spirit's defense work in Wichita, post-Boeing acquisition. It's an area that has drawn questions and concerns from Wichita subcontractors, major defense companies and Moran.
Last month, it was reported that Textron Inc.'s Bell division is expected to find a new supplier on its Future Long Range Assault Aircraft for the U.S. Army after Boeing's Spirit purchase closes.
On Monday, Moran continued to emphasize his efforts to keep Spirit's defense work in Wichita and Kansas, post-acquisition — whether that's still under the Boeing umbrella or with other companies.
He said he liked what he heard.
"Boeing assured me today that they are fully interested in all defense work that is taking place at Spirit to remain with Boeing and agreed with me that they would do everything to make certain that it stayed in Kansas," said Moran, highlighting the 1,500 to 2,000 Spirit Wichita employees who currently work in defense and space.
