Boeing announced more inspectors and better benchmarks last week
Dubai:
Back-patting over record passenger numbers is tinged with frustration at the airline trade body’s annual meeting, as carriers bemoan years-long delays in deliveries of new Boeing aircraft.
The main projections of almost five billion passengers and close to 1 billion dollars in revenue this year, both records, were reasons for celebration at the IATA annual general meeting in Dubai.
But the numbers would have been stronger without the problems faced by Boeing, one of the two main aircraft suppliers along with Airbus, whose safety and manufacturing standards have come under the spotlight.
“It’s suppressing growth right now, without a doubt,” said the director general of the International Air Transport Association, Willie Walsh, explaining that delivery delays were “factored in” in the annual estimates.
Last week, Boeing, at the center of a series of safety incidents, announced more inspectors and better benchmarks under a “roadmap” required by US regulators.
The US aviation giant has faced intense scrutiny following production problems and damning testimony from whistleblowers.
On January 5, a Boeing 737 MAX 9 operated by Alaska Airlines made an emergency landing after a fuselage panel exploded mid-flight. The jet was only delivered in October.
The same model was grounded after two accidents linked to design defects in 2018 and 2019 that left a total of 346 people dead.
Boeing also suffered production problems last year on the long-haul 737 and 787 Dreamliner, while deliveries of the 777X are expected in 2025 – six years behind schedule.
‘Pride of engineering’
Dubai’s state-owned airline Emirates, which placed a massive order for 205 777Xs worth tens of billions of dollars, has been particularly hard hit by the delays.
“For me, this will be a five-year hiatus (for Boeing) from now on… to get production levels back up,” Emirates President Tim Clark told Bloomberg.
Walsh said delivery delays have also been seen at Boeing’s European rival Airbus, at a time when many carriers are eager to renew or expand their fleets as the industry recovers from the pandemic.
“I think it’s the cause of a lot of frustration,” he said. “Many airlines see opportunities to expand their network, they want to provide services to new destinations that they cannot because they cannot acquire the new aircraft.”
Boeing is at a crossroads after CEO Dave Calhoun’s departure was announced in March. His successor has not yet been announced.
“Whoever runs Boeing needs to reestablish the pride in engineering that Boeing is known for,” said Lufthansa CEO Carsten Spohr.
“The industry needs Boeing… nobody wants less competition,” he added.
Scott Kirby, who runs United Airlines, agreed that Boeing needs to regain its strengths.
“They are one of the best technology, engineering and quality companies in the world,” he said. “But I think they let short-term finances take precedence.”
Vik Krishnan, an aeronautics expert at consultancy McKinsey, witnessed the “exasperation” among airlines.
“Ultimately, it shows that there is an unmet demand (for travel) and that there is no easy solution,” he told AFP.
As Airbus shares many suppliers with Boeing and some of its problems, it is a major bottleneck for an industry during a period of great expansion.
“It’s not good news that Boeing is in the situation it is in, including for Airbus,” said Jerome Bouchard, partner at management consultancy Oliver Wyman.
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