Airlines ready to trust Boeing again, but want quality and safety in place

US-based aerospace giant Boeing has a big task at hand - winning back the trust of its customers. While airlines across the globe are ready to trust Boeing again, they want the aircraft manufacturer to revert to its historical standards of quality and safety.

“The issue to me at Boeing is culture. They are one of the best technology, engineering, quality companies in the world. But, I think they let the short-term financials take primacy, and all they must do is get back to the culture of quality and engineering and the financials will take care of themselves,” United Airlines chief executive Scott Kirby told Mint.

Boeing has been in the spotlight since January over investigation into the 737-9 MAX aircraft. On 5 January, an Alaska Airlines flight 1282 took off from Portland for Ontario in the US, and shortly after takeoff, a door plug or a structure installed to replace an optional emergency exit door, blew out, causing an uncontrolled decompression of the aircraft. The aircraft returned to Portland and several passengers required medical attention after landing.

As a result, the National Transportation Safety Board of the US opened an investigation into the Alaska Airlines incident and weeks later, the NTSB was also investigating another incident in February in which a United Airlines pilot in a Boeing 737 Max-8 reported stuck rudder pedals during a landing.

“I think Boeing has work to do. It is a question that is vexing us all. They will get it right in the end. They will restore their production lines, their safety of operations, their quality of build, that will come. We are all being hamstrung by this. But, they are on it, and they get it. That is the most important thing that they get it, so they know they cannot continue the way they did,” Emirates President Tim Clark told Mint on the sidelines of the IATA Aviation Summit earlier this month in Dubai.

The current investigation at Boeing has also slowed down the pace of deliveries by the aircraft manufacturer. In May, deliveries halved to 24 commercial aircraft, compared to 50 in the same month a year ago, as the company said that it is producing fewer MAX aircraft to improve manufacturing quality.

"Everyone is aware of the challenges that Boeing faces, given the high profile of events they have faced, but I think everybody is aligned that we want to see these original equipment manufacturers (OEMs) perform and we need strong competition, and we only have two major airframe manufacturers...recognizing that we also have Embraer, which does an excellent job, and there is a developing industry in China, we want to see these manufacturers perform and perform to the standards that is expected,” International Air Transport Association director general Willie Walsh said.

While the investigations by NTSB and US aviation regulator Federal Aviation Administration have been underway, Boeing has also implemented a management reshuffle plan. President and CEO Dave Calhoun will step down as CEO at the end of 2024. Stan Deal, president and CEO of Boeing Commercial Airplanes, retired from the company in March and has been replaced by Stephanie Pope.

On 30 May, Boeing executives, including Pope, met with FAA to present its comprehensive safety and quality plan, which includes investment in workforce training, simplification of plans and processes, elimination of defects, and elevation of safety and quality culture. Pope then flew in for a day on 3 June from Seattle to meet airlines at the IATA Aviation Summit in Dubai and is believed to have reassured customers of her determination to address several issues at Boeing. For airlines, the new management brings optimism but also caution.

“They still have my trust, I cannot speak for others,” Carsten Spohr, chief executive officer at Lufthansa said while Emirates president Clark said, “Time will tell on the new management.”

Adam Boukadida, chief financial officer at upcoming airline Riyadh Air, told Mint that Pope and her team have the full support of the airline and he doesn't expect any significant delay in the delivery of their first Boeing aircraft, due next year.

“The biggest thing for them to do is make the structural changes to get Boeing back to the level of greatness they were historically,” Kirby said.