More analysis of Boeing's pain in an excellent drill down into the specific issues being experienced https://lnkd.in/eFsnQVHs. As Petter explains, Boeing needs to have a "boring" year https://lnkd.in/e7sDfECK. There's been a lot going on and much of it has been negative. Unfortunately, there also seem to be some elements of bad luck or bad timing coming together. So on top of the MCAS debacle and the most recent problems with door plugs and improperly drilled holes, an issue with the de-icing system has also been identified, although there have been no actual incidents https://lnkd.in/e3N8qnGg .
In addition, after 2027, the new emissions regulations https://lnkd.in/eeTzHyRk effectively mean that Boeing can no longer make the 767F, which they were producing as their main freighter aircraft for air cargo. This creates a significant gap in the market for airfreight. Existing 767s can be used but the airlines and companies using them will be under pressure to examine their own emissions, and both report on and seek to reduce those emissions further. With over 240 of the 767F (Freighter) aircraft in service, and many more older converted planes, that could mean a large proportion of fleets coming under pressure to change.
Boeing will need to assess and determine how it will catch up on the delays in orders and continue deliveries to its existing customer base. There is some upside, not least the fact that there are still many orders and Boeing has its past reputation and history, but financing new developments while fulfilling those orders may be a challenge. However, it may be that Boeing can't afford not to seek new developments.
Another potential upside, as highlighted in the video (at 20:28) https://lnkd.in/eFsnQVHs, is that the airline industry has a shortfall of around 3,000 aircraft globally compared to pre-pandemic expectations for 2023/24. So demand is certainly there, the challenge is that supply chains, production speed, and regulatory matters all potentially stand in the way of fulfilling this.
Boeing will also need to ensure that they don't get left further behind by Airbus, who are looking ahead to hydrogen-powered aircraft and new designs of more fuel-efficient aircraft. With new aircraft such as Droneliner on the horizon, which has potential for either Boeing or Airbus if new or expanding entrants in the market don't get there first, the major airframers will need to consider their options carefully. The demand for aircraft is certainly there, but it will likely be a new type of aircraft as customers and airlines push harder on environmental and emissions targets.
#Boeing #Airbus #737Max #Droneliner #Airfreight
Lead machinist at Eaton (recently retired)
1moI worked on the fuel pump that goes on that engine.