Boeing’s turbulence is a threat to the entire aviation industry

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Boeing is fighting to ensure its own survival as it grapples with a deepening crisis. It is not the only thing at stake.

The turmoil at the top of Boeing this week underscores the extent to which the aircraft manufacturer’s quality control issues have the potential to destabilise the entire commercial aviation industry.

Already airlines in the US and Europe are having to revise their schedules to reflect smaller-than-planned fleets because of Boeing’s inability to deliver as promised. That’s against a backdrop of a continuingThat, in turn, will flow through, and is flowing through, to higher airfares as capacity is tightening relative to demand and, with the prospect of Boeing delivering the next generation of more fuel-efficient jets receding into the distance, more pressure on airlines’ costs in future.

Even though Airbus plans to deliver about 800 aircraft to customers this year it doesn’t have the capacity to pick up anything meaningful of the slack created by Boeing’s reduced production. Boeing has slowed manufacturing rates as it grapples with quality control issues that pre-date the crashes of the two Max 8s.

Its quality control issues were compounded by the pandemic. Where Airbus kept control of most of its workforce, Boeing let much of its go and has had trouble rehiring experienced workers as demand for its planes has rebounded.

 

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