The quality scandal recently exposed by the Boeing 737 Max model caught the global aviation industry off guard. This week, aircraft lessors, bankers, and airlines are reportedly scheduled to hold a meeting in Dublin, Ireland, the global aviation finance hub, to discuss the consequences of some Boeing aircraft grounding.
The meeting will continue to be held over the next week, but almost all parties present are currently immersed in anger and worry.
Rob Morris, head of global consulting firm Ascend by Cirium, wonders when Boeing's supply will resume. Due to issues with the Max model, delivery volumes for 2026 and 2027 are expected to face downward risks.
Last week, the Federal Aviation Administration ordered Boeing to suspend production of the 737 Max model until all quality issues were resolved. Industry insiders are pessimistic that even if the restriction is lifted one day, Boeing will face strict quality inspections, which will affect delivery speed.
United Airlines CEO Scott Kirby revealed that they are in talks with Airbus to purchase more A321neo jets to fill the loopholes left by Boeing.
He stated that the absence of two key aircraft models, the Boeing Max 9 and Max 10, has put United Airlines in crisis.
Aircraft Battle
Due to the worrying supply prospects of Boeing, major airlines have had to join the competition for scarce capacity, which may lead to a significant increase in ticket prices. This annoying result has made many industry analysts exclaim: Let Boeing's CEO, other executives, and board members step down!
This statement is very rare. Given that there are only a few suppliers in the aviation industry, most of the time there is an attitude of not looking at Buddha's face or monk's face, and it is rare to publicly criticize or attack others by name. However, this is clearly an "extraordinary moment".
Several representatives attending the conference in Dublin reminded that the market should pay attention to the tone of speeches from top aircraft leasing companies such as AerCap, SMBC Aviation Capital, Air Lease, and Avolon at Monday's opening meeting.
However, Kirby from United Airlines may have already provided some clues in advance. He stated that United Airlines has not yet cancelled orders for 277 Max 10 aircraft, but these planes have actually been removed from internal plans. He "flaunted" and said that Boeing could no longer meet the delivery requirements of the contract, so let's just do it.
At the same time, United Airlines is turning to Boeing's old rival Airbus to seek the remaining scarce A321neo aircraft procurement resources, which may further break Boeing's supply advantage with United Airlines, thus entering a new competitive landscape in the global aircraft industry.
Airbus is repurchasing used A321neo aircraft in the market for refurbishment, maximizing supply. This makes Boeing see it in the eyes and suffer in the heart. However, due to the uncertainty of the review deadline, Boeing was unable to provide any commitment regarding the delivery of the Max model, and now it can only stand up straight and face criticism.