The quality scandal recently exposed by Boeing's 737 Max model has caught the global aviation industry off guard. This week, aircraft lessors, bankers and airlines are said to be meeting in Dublin, Ireland, the center of the global aviation finance industry, to discuss the consequences of the grounding of some Boeing aircraft.
The meeting will continue over the next week, but all parties involved are currently immersed in anger and concern.
Rob Morris, director of AscendbyCirium Global Consulting, wondered when Boeing's supply could be restored. Due to problems with the Max model, deliveries in 2026 and 2027 are expected to face downward risks.
Last week, the Federal Aviation Administration ordered Boeing to suspend production of the 737 Max until all quality issues are resolved. Industry insiders pessimistically predict that even if the restrictions are lifted one day, Boeing will face strict quality reviews, which will affect the delivery speed.
United Airlines CEO Scott Kirby revealed that they are in contact with Airbus to purchase more A321neo jets to fill the hole left by Boeing.
He said that the absence of two key models of Boeing Max9 and Max10 has plunged United Airlines into a crisis.
As Boeing's supply outlook is worrying, major airlines have to join the fight for scarce capacity, which may lead to a sharp increase in ticket prices. This annoying result has many industry analysts shouting: Let Boeing's CEO, other executives and board members step down!
This statement is very rare. In view of the fact that there are only a handful of suppliers in the aviation industry, most of the time the industry adopts an attitude of not looking at the Buddha but the monk. It is rare to publicly criticize or attack others by name, but this is obviously an "extraordinary moment."
Several delegates attending the conference in Dublin warned that the market should pay attention to the tone of speeches by top aircraft leasing companies such as AerCap, SMBCA Aviation Capital, AirLease and Avolon at the opening meeting on Monday.
However, United's Kirby may have provided some clues beforehand. He said United has not yet canceled its order for 277 Max 10 aircraft, but the planes have actually been removed from internal plans. He "showed off" and said that Boeing could no longer meet the contract delivery requirements, so be it.
At the same time, United Airlines turned to Boeing's old rival Airbus to seek out the few remaining A321neo aircraft procurement resources, which may further break Boeing's supply advantage over United Airlines and bring the global aircraft industry into a new competitive landscape.
Airbus is on the market