Boeing Is Finally Rebuilding Quality

Boeing’s quality has been one of the more talked-about points industry-wide over the last several years; however, things seem to be improving.

Speaking with CNBC, Aengus Kelly, the CEO of AerCap, one of the industry’s leading aircraft lessors, discussed the visible improvement across the American planemaker in recent times.

AerCap is a massive buyer of Boeing and strongly believes in the planemaker’s product, but it knows significant quality slips need to be overcome.

Since a door blowout incident occurred at the top of the 2024 calendar year and further issues were identified, Boeing has spent hundreds of millions and substantial resources away from funds in attempts to turn its fortunes around for the greater good.

These investments have been spurred on by a lack of faith in the product driven by airline customers, onlookers and even enhanced oversight from the Federal Aviation Administration.

Kelly believes that despite all these issues, Boeing has always been a company that has not hesitated in buying commercial aircraft.

With this unwavering commitment, Kelly is also aware of noticeable improvements in the processes within the planemaker’s production floors. This area has come under a significant degree of spotlight in recent times.

AerCap says they can see improvements on the floor because they continue to purchase planes from Boeing and consistently take delivery of their aircraft.

As a result, this close relationship that AerCap has built with Boeing enables them to get insight into the planemaker’s processes that other airlines or leasing giants may not experience on such a frequent basis.

Boeing Sees More Positive Comments

However, AerCap wasn’t the only one to voice its positive thoughts on Boeing’s development over recent years. Fitch also stated that substantial improvements were being made.

Fitch said that Boeing is well on its way to making early progress in resuming production following a multi-month strike. This strike period affected the company’s production, which was already under pressure driven by complicated supply chains.

Furthermore, Fitch stated that the manufacturer was also looking to reduce some of its legacy inventory while investing in supply chains, which have been challenging and putting more significant pressure on the American planemaker.

Unfortunately, while there is improvement, Fitch has been clear that the company’s revenue and profitability remain a visible concern as the production rates remain capped.

Therefore, while investments are being made for the future and improvements are more than visible, Boeing still has a while to go before it can consider itself in an optimal position to drive towards long-term sustainable profitability with persistently quality aircraft being produced.