At this week's Farnborough Airshow, Boeing kept a low profile, claiming that its focus was on meeting the quality requirements of US regulatory agencies and fulfilling its delivery commitments to customers. Currently, it has no plans to sell its aircraft in large quantities.
Boeing's Chief Operating Officer Stephanie Pope stated that Boeing is focused on delivering aircraft to customers and hopes to restore production of the struggling 737 Max aircraft to 38 per month. In order to reform quality and safety, Boeing has significantly slowed down the production speed of its factories.
This statement is inconsistent with the original intention of the Farnborough Airshow. This aviation expo has traditionally been a venue for aerospace companies to showcase their latest technologies, as well as for manufacturers to promote a large number of orders for new passenger, cargo, and military aircraft. Boeing's low-key appearance at the Farnborough Airshow reflects to some extent the company's predicament.
At the beginning of this year, a Boeing 737 Max 9 aircraft operated by Alaska Airlines had a door jam burst during flight. Subsequently, multiple Boeing insiders came forward to report quality issues, putting Boeing at the center of attention. Subsequently, the US aviation regulatory agency and judicial department also intervened in the investigation, and Boeing's aircraft business plummeted.
Richard Aboulafia, a consultant at AeroDynamic, a consulting firm, expressed his hope that Boeing's new CEO next year can change the status quo, but before that, Boeing needs to unite as one to maintain its normal operation. This is a tragedy and also embarrassing. I hope this air show can become the darkness before dawn.
New orders are emerging
John Strickland, an aviation analyst at JLS Consulting, stated that typically, manufacturers arrange a large number of aircraft exhibitions at air shows, seizing every opportunity to promote and test fly. But this time, Boeing showed remorse and focused on safety to gain trust.
And this has also captured the hearts of some customers. According to Boeing, South Korea's largest airline, Korean Air, plans to purchase 20 Boeing 777 and 20 787 Dreamliner planes, while Japan Airlines has agreed to order 10 787 planes, both of which include the option to purchase an additional 10 Dreamliner planes.
Walter Cho, CEO of Korean Air, stated that he expects to begin receiving these aircraft by the end of this century. He also said that without confidence, he would not have ordered these planes, and he believes Boeing will overcome all the current difficulties.
But at the same time, Korean Air has also ordered a batch of Airbus A350 aircraft this year. Cho pointed out that the aircraft of the company that can arrive at the apron first will become the flagship aircraft of Korean Air.
At present, both Boeing and Airbus have a large backlog of orders, which will take several years to complete shipments. However, due to quality issues, Boeing's monthly order volume has significantly decreased, which has led to a sharp increase in Airbus' market share.
Airbus is currently developing the A321XLR aircraft, with its core selling point being fuel efficiency, which allows airlines to use narrow body aircraft for long haul flights at a cheaper price. The model is expected to receive certification later this year and has already accumulated over 500 orders.