Boeing plane delays put aviation conference in jeopardy

Dubai:

The airline trade body’s annual meeting reflected disappointment over record passenger numbers, as airlines lament years of delays in the delivery of new Boeing planes.

Estimates of nearly five billion passengers and revenues of almost $1 trillion this year, both records, were cause for celebration at IATA’s annual general meeting in Dubai.

But these figures would have been even stronger without the problems facing Boeing. Boeing is one of two major aircraft suppliers, along with Airbus, whose safety and manufacturing standards have been in the spotlight.

“There’s no doubt it’s suppressing growth at the moment,” said Willie Walsh, director general of the International Air Transport Association, noting that delivery delays are factored into annual estimates.

Last week, Boeing, which has been at the centre of a number of safety incidents, announced more inspectors and better standards under a “roadmap” sought by US regulators.

The US aeronautics giant is facing intense scrutiny following manufacturing problems and negative testimony from whistleblowers.

On January 5, a Boeing 737 Max 9 operated by Alaska Airlines had to make an emergency landing after a fuselage panel ruptured during flight. The jet was delivered in October.

The same model was grounded after two accidents linked to design flaws in 2018 and 2019 that killed a total of 346 people.

Boeing also faced problems with production of the 737 and the long-range 787 Dreamliner last year, while the 777X is expected to be delivered in 2025 – six years behind schedule.

‘Pride of Engineering’

Dubai’s state-owned Emirates Airlines, which placed a massive order for 205 777Xs worth billions of dollars, has been particularly affected by the delays.

“For me, it would be a period of five years from now (for Boeing) … to get back to production levels,” Emirates President Tim Clark told Bloomberg.

Walsh said Boeing’s European rival Airbus is also seeing delivery delays, at a time when many airlines are eager to renew or expand their fleets as the industry recovers from the pandemic.

“I think that’s a cause for a lot of frustration,” he said. “Many airlines see opportunities to expand their networks, to serve new destinations, but they can’t do that because they can’t get new aircraft.”

Boeing is at a crossroads after CEO Dave Calhoun announced his departure in March. His successor has not yet been announced.

“Whoever takes over Boeing will have to restore the pride of engineering that Boeing is known for,” said Lufthansa Chief Executive Officer Carsten Spohr.

“The industry needs Boeing … nobody wants less competition,” he said.

United Airlines chief Scott Kirby agreed that Boeing needs to return to its strengths.

“They are one of the best technology, engineering and quality companies in the world,” he said. “But I think they have prioritized short-term financials.”

Vik Krishnan, an aeronautics expert at the McKinsey consultancy, spoke of “extreme anger” among airlines.

“What this ultimately shows is that there is unmet demand (for travel) and there is no easy solution to this,” he told AFP.

Since many of Airbus’ suppliers are similar to Boeing and have some of the same problems, this is a major constraint for the industry during a period of great expansion.

“It’s not good news that Boeing is in this position,” said Jerome Bouchard, a partner at management consulting firm Oliver Wyman, which also includes Airbus.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)