Inc. Australia’s Post

BOEING TROUBLES CONTINUE - Boeing landed orders for only four aircraft in May and delivery slowdown persists. With FAA intervention, the Senate hearings, the whistleblower deaths, and the sword of Damocles hanging over the 777x program have meant that Boeing has had to slow down production and deliveries. Slower production, beset with problems, has also encouraged the market to look at the European rivals - Airbus. The previous month only recorded a sale of four aircraft in the month. How does Boeing turn this tidal wave around and recover its position? #Aviation #avgeeks #airline #Boeing #airbus https://lnkd.in/dbjW3zKx

An order for ten Boeing 777-X jets, if consummated, would be the logical replacement for Korean Air ‘s aging Airbus A380s & other (likely quad jet 747-8i) wide-bodies (early next decade with options) as it absorbs rival Asiana Airlines , if/when their long ago proposed merger finally gains respective government approvals from EU & US regulators. The order, if completed, would also be a welcome addition & vote of confidence from a top tier airline for Boeing’s much delayed & over-budget, largest capacity, 747 replacement aircraft model. The airline & #airbus finalized a $13.7 billion order for 33 A350s (27 -1000 & six -900 models) earlier this month (April 2) as part of its widebody fleet renewal announced March 21 (as discussed in the link posted in the reader comments section below). To date, none of the largest US-based #airlines, American Airlines , United Airlines or Delta Air Lines , have placed orders for Boeing’s largest capacity “mini-jumbo” 777-9 jet, despite the former two, AA & UA, operating large fleets of 777s, including -300ERs, which is currently Boeing’s largest capacity twin-engine model in service. #airlinesandairplanes #airlineindustry #airtravel #aircraft #aerospace #aerospaceindustry #asia #asiapacific #aviation #aircraftleasing #aircraftmanagement #assets #assetfinance #finance #investors #investing #business #businessnews #paxex #avgeek

“Boeing Co. is estimated to have delivered nine 737 Max jet airliners to China in August, the highest monthly total in almost six years, offering a glimmer of hope to Kelly Ortberg, its CEO, as he tries to clear a stockpile of completed aircraft. The handovers eclipsed every monthly total since December 2018, according to data from Cirium, the aviation analytics firm. That was shortly before regulators grounded the Boeing narrowbody airliner following two fatal crashes. Inventories swelled to about 450 undelivered Max jets by late 2020 due to the extended grounding and the pandemic. A fresh crisis earlier this year when a door panel on an Alaska Airlines 737 MAX 9 blew off in midair slowed Boeing’s efforts to reduce the backlog and recent progress could unravel with potential strike action at its Seattle plants. Handing over more aircraft to Boeing’s biggest export market would unlock delivery payments, easing pressure on Boeing’s battered balance sheet while Ortberg focuses on stabilizing factory operations.” “Boeing shares fell 7.3% on Tuesday to the lowest since November 2022, after Wells Fargo & Co. lowered its recommendation to the equivalent of ‘sell.’ The firm said Boeing will probably need to raise equity to pay for new aircraft development, diluting its shareholders. The new CEO, who started on Aug. 8, has a long list of issues to address, the most urgent being a possible strike next week that could leaving Boeing’s Seattle factories idle. China was the first country to ground the 737 Max in March 2019, and one of the last to lift its ban. Its carriers have operated a steadily growing number of Max jets since deliveries restarted early this year. Progress has been start-and-stop. An issue with cockpit voice-recorder batteries led to a pause in shipments to China of the 737 and larger 787 model. Authorities in China allowed widebody deliveries to resume in late June, and in early July for the 737. Boeing has 64 more Max 8 models earmarked for Chinese airlines, Cirium’s Morris said.” “Two other variants, the Max 10 and Max 7, await certification, and there are no Max 9s listed on order with Chinese customers. Boeing’s overall backlog of undelivered 737 Max 8 jets built before 2023 stood at about 90 at the end of June. The company has set a goal of getting most of those to customers by year-end. Moving the aircraft off its premises, along with about 35 of the larger 787 Dreamliner, would help the company shut down its costly ‘shadow factory’ of workers preparing the planes for delivery. While disaster was averted in January when a panel blew off the 737 Max 9, regulators reacted by capping 737 production while Boeing addressed manufacturing quality. Its board brought in the Ortberg, 64, as part of a management overhaul. Ortberg is also contending with losses at the defense unit and an embarrassing setback at its Starliner program that will require Elon Musk’s rival SpaceX to bring home astronauts it took to the space station.”

Boeing has recently resumed deliveries of its 777 and 787 aircraft to China, following a temporary halt due to regulatory issues. This move comes as a positive development for the aerospace giant, as China is one of its key markets. The resumption of deliveries is expected to help Boeing recover from the setbacks it faced in recent years, including the grounding of its 737 MAX aircraft. In addition to restarting deliveries to China, Boeing is also gearing up to resume deliveries of its 737 MAX aircraft in the near future. The 737 MAX was grounded worldwide in 2019 following two fatal crashes, but has since been cleared to fly again by aviation authorities. This development is crucial for Boeing, as the 737 MAX is one of its best-selling aircraft models. Overall, the resumption of deliveries to China and the impending return of the 737 MAX to service are positive signs for Boeing's recovery and future prospects in the aerospace industry.

United Airlines Removes Boeing 737 MAX 10 From Expected Aircraft Deliveries According to an SEC filing, United Airlines has removed the Boeing 737 MAX 10 from its fleet plan from this year until after 2025. This comes after a string of problems with Boeing quality control and delays in the certification of the aircraft type. Read more at: https://lnkd.in/daUFzR-h #AviationTalk #aviationnews #avgeek #aviation

“Boeing Co. handed over a 737 Max aircraft to a Chinese airline for the first time since the best-seller was grounded in early 2019, in a boost to the U.S. plane-maker as it works to shore up support for the beleaguered model. A China Southern Airlines Co. Ltd. Max took off from Boeing Field in Seattle on Wednesday at 11:55 a.m. local time bound for Honolulu, according to tracking service FlightRadar24. The flight is the first of several legs across the Pacific, marking a major milestone nearly five years after Beijing banned the aircraft from flying in the wake of fatal crashes in Indonesia and Ethiopia. The breakthrough hands Boeing some much-needed good news as it struggles to recover from a crisis that erupted on Jan. 5, when a fuselage section blew off in midair from a 737 Max 9 operated by Alaska Airlines. U.S. regulators have grounded 171 of the variant.” “Customers from United Airlines Holdings Inc. to Alaska Air Group Inc. and Ryanair Holdings Plc have criticized Boeing’s recent string of quality lapses. Shares of Boeing advanced to session highs, up as much as 2.9% intraday, after Bloomberg reported on the delivery flight. Spirit AeroSystems Holdings Inc., the supplier that makes most of the plane’s airframe, gained as much as 9.1%. China Southern is taking delivery of a Max 8, by far the top-selling member of the 737 family. Resuming exports to China should provide a boost to Boeing’s cash, while helping the company whittle down its stockpile of hundreds of already built aircraft lingering from a global grounding nearly five years ago and the Covid-19 pandemic that followed. The plane-maker holds around 75 of the workhorse jets earmarked for China, executives have said. The handoff comes as Boeing steps up 737 deliveries after weeks of unrelenting scrutiny and damaging headlines.” “Not counting China Southern’s new jet, Boeing had delivered 14 of its 737 family aircraft, including 11 Max, along with a KC-46 tanker so far this month, Scott Deuschle of Deutsche Bank said in a report to clients before Wednesday’s flight. All of the Max deliveries so far this year have gone to operators outside the U.S., he noted. Handovers to China were set to start late last year. However, preparations were put on hold after Boeing and Federal Aviation Administration instructed Max operators to inspect the aircraft for loose rudder bolts. China signed off on Juenyao Airlines Co. Ltd.’s newest 787 Dreamliner delivery on Dec. 21, the first passenger jet handed over directly from Boeing to a Chinese carrier since November 2019. That signaled Max deliveries could be next. Boeing declined to comment. China Southern didn’t respond to a request for comment outside of regular business hours.”

So the troubles continue to get even worse for Boeing. Not only has Emirates boss Tim Clark today warned the manufacturer it's "last chance saloon", but the airline will send its own engineers to oversee the production line - something totally unheard of in the industry. To regain trust, Boeing has no option but to make far bolder steps in terms of major changes in both management and process to begin to pull out of this dive in reputation #aviation #crisismanagement https://lnkd.in/g6K-murP

When a supplier fails to satisfy its customers and loses their trust, it sets off a chain reaction of repercussions that can severely impact its business. The recent warnings from Emirates' president regarding Boeing's manufacturing quality underscore the critical nature of maintaining trust in the aerospace industry. Instances like the 737 Max 9 incident highlight how a breakdown in quality control can shake the confidence of major clients, leading to heightened scrutiny, inspections, and even reconsideration of future acquisitions. Such scenarios serve as a stark reminder that trust, once lost, is challenging to regain, emphasizing the paramount importance of consistent quality and reliability in supplier-customer relationships. #boeing #customers #suppliers #emirates #quality #relationship

The Ripple Effect: How Boeing Production Delays Are Costing Airlines It is no secret that Boeing is being hit by a series of massive scandals related to cutting corners in producing its Boeing 737 MAX family of aircraft. The FAA has stated that Boeing can not increase 737 MAX production until quality issues are addressed. Boeing is now reporting a 36% decline in quarterly aircraft deliveries. As the airliner industry is dominated by a duopoly of two manufacturers (Boeing and Airbus), disruptions in either of these companies have massive effects on the wider industry. Low deliveries from Boeing are having adverse ripple-on effects with the airline companies. Read more at: https://lnkd.in/dmRHPrmd #AviationTalk #aviationnews #avgeek #aviation

#newsoftheday Boeing aircraft deliveries to China delayed by state regulator review In a year-end 2023 filing, Boeing said it had about 140 737 MAX 8 aircraft in inventory, including 85 aircraft for customers in China. #internationalfinance #boeing #aviation #aviationews #boeing737max #china #aviationregulation #aviationcustomers