Boeing’s troubles show no signs of abating as Ted Colbert, CEO of Boeing Defense, Space & Security, has resigned from his position. While no official reason was provided for Colbert’s departure after 15 years with the company, industry insiders suggest that Boeing’s underperformance in recent years may have forced the leadership change.
Boeing’s Defense, Space & Security division contributes approximately 40% of the company’s overall revenue. However, the division has been plagued by rising production costs and delays, further straining the company’s financial outlook. Colbert’s resignation follows a two-year struggle marked by mounting operational challenges.
The aviation giant has been embroiled in several high-profile controversies, including a dispute over the conversion of Boeing 747 aircraft into Air Force One for the US President, which sparked significant public criticism.
Boeing’s reputation took a hit following the fatal crashes of its 737 Max aircraft in Indonesia and Ethiopia in 2019-20, which led to the grounding of the model worldwide. Earlier this year, the company faced additional scrutiny when a door malfunction was reported mid-flight on an Alaska-bound aircraft.
Further compounding Boeing’s difficulties is its significant debt burden, currently standing at $6 billion. The company has also been under the spotlight due to the mysterious deaths of employees who had blown the whistle on internal flaws.
In June of this year, Boeing’s Starliner spacecraft failed to return NASA astronauts from space, a task that was subsequently assigned to SpaceX’s Crew-9 mission.
Adding to Boeing’s woes, the company is entangled in a legal dispute with Brazilian aviation firm Embraer. The lawsuit, filed by Brazil’s aviation industry, accuses Boeing of attempting to poach top engineers and technicians from Embraer.
As Boeing grapples with these multifaceted challenges, Colbert’s departure marks yet another blow to the company’s already shaky standing in the aerospace sector.