Mr McNerney had been widely tipped to get the Boeing job

It is Boeing's third chief executive in 18 months, and follows the resignation of Harry Stonecipher after he admitted an affair with a female executive.

Mr McNerney previously ran General Electric's jet-engine unit and has served on the Boeing board since 2001.

In recent years, Boeing has faced tough competition from European rival Airbus.

Likely candidate

Boeing chief financial officer James Bell has held the top job since Mr Stonecipher's resignation, but was never seen as a contender.

James McNerney's experience, relative outsider status and execution track record are a positive for Boeing Nick Fothergill, Bank of America Check Boeing's share price

Mr McNerney said he "couldn't be happier" to join the firm.

He added the company was on a strong financial footing hinted he would not be carrying out sweeping changes at Boeing as its "strategy is in good shape".

"It's less big structural or financial or strategic fixes, it's more becoming part of the team," he told reporters.

Fresh start

The company will hope that his arrival marks a new beginning for the aerospace giant.

"His experience, relative outsider status and execution track record are a positive for Boeing," said Bank of America analyst Nick Fothergill.

Boeing shares surged on the news, rising 7% to $66.

Harry Stonecipher resigned in March

Mr Stonecipher, 68, was appointed chief executive in December 2003 but was sacked in March this year after an inquiry into "a personal relationship" between him and a female co-worker.

His predecessor Phil Condit had resigned in a move aimed at drawing a line under a number of business scandals at the firm.

The firm has previously admitted spying on rival Lockheed Martin. It also had to fire its finance boss for unethical conduct - negotiating the recruitment of an air force procurement official while she was still working at the Pentagon.

Market woes

Boeing has struggled to compete with Airbus, which now sells more planes around the world than it does, and its new chief has conceded the firm has "a little bit of a hole to climb out of in a few places".

Evidence of the two firms' rivalry was much apparent on Thursday, with both recording new orders.

Japan Airlines said it had ordered six aircraft - three freighter and three passenger versions of the Boeing 767-300ER - from Boeing for an undisclosed sum.

Meanwhile, Chilean airline LAN Chile announced it would be buying 25 Airbus A318 and A319 aircraft in a $750m deal.

The two companies have different strategies for growth, with Airbus placing its hopes on giant planes such as the superjumbo, while Boeing says the future of commercial aircraft lies with smaller planes.

Europe and the US are also currently locked in a trade row about development funding for the two manufacturers.

The Europeans say that Boeing receives illegal subsidies in the form of military contracts and tax breaks.

The US, meanwhile, accuses the EU of having funded Airbus's latest A380 super-jumbo project with generous subsidies.