The American aerospace giant Boeing is projected to confirm manufacturing figures at less than half those of its European rival Airbus for 2024, raising serious concerns about the company’s production capabilities and future growth plans.
Industry analysts at Flight Plan forecast Boeing will report approximately 340 aircraft deliveries when figures are released on Tuesday, significantly trailing behind Airbus’s impressive 766 units. The stark contrast in production output comes during a challenging period for Boeing under newly appointed chief executive Kelly Ortberg, who took the helm in July with hopes of orchestrating a crucial turnaround.
The year 2024 proved particularly turbulent for Boeing, marked by a mid-air door panel incident caused by missing bolts and the tragic Muan crash of a 737-800 aircraft that claimed 179 lives. These events, coupled with a seven-week workers’ strike at Boeing’s primary Seattle facilities, have contributed to a substantial decline in deliveries compared to the 528 aircraft delivered in 2023.
Boeing’s ambitious target of producing 38 737 Max planes monthly by May 2025 has met with scepticism from industry experts. Bernstein analysts, led by Douglas Harned, express doubts about the timeline’s feasibility, suggesting July as a more realistic target date. The absence of experienced production management personnel has further complicated the manufacturer’s recovery efforts.
Meanwhile, Airbus, despite its own supply chain challenges, narrowly missed its revised target of 770 planes for the year. Christian Scherer, chief executive of Airbus’s commercial aeroplane division, remained optimistic about future growth, indicating plans to surpass the company’s 2019 record of 863 aircraft in the “foreseeable future”.
The contrasting fortunes of these aerospace giants highlight the ongoing challenges within the commercial aviation sector, where production efficiency and safety considerations continue to shape market dynamics and competitive positioning.
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