Boeing Can’t Launch A New Aircraft

Talk about Boeing’s next commercial airliner has been hot on the industry’s lips across the last decade.

Unfortunately, for many reasons, Boeing has not launched a new commercial aircraft and instead is focusing on rebuilding itself as a business to ensure longevity.

However, Boeing has also taken the opportunity to discuss the prospect of a new plane alongside its current priorities as it moves into 2025, which is thus the mid-way point of what would largely be a decade to forget.

As reported by The Wall Street Journal, and thanks to the company’s new chief executive, Kelly Ortberg, the planemaker is looking to stabilise its business and move past the lows it has experienced in recent times.

The manufacturer’s highs have been high; however, equally, the lows have been incredibly low, and Ortberg firmly believes change is required.

Interestingly, the report further stated that the planemaker was tired of hearing the persistent negatives surrounding the business lately.

Unfortunately, Boeing has only had itself to blame of late, with niggles impacting its image. Most of these have substantial ramifications, such as quality issues, certification troubles, employee discontent, etc.

Ortberg says that their internal focus is on rebuilding themselves as a business that will once more be able to compete with Airbus. The gap between the two plane makers has grown to colossal levels over the last five years, with grounded aircraft at Boeing, certification troubles, and more.

While there have been gaps in output levels, further concerns have been present about the planemaker’s financial position if it cannot start increasing production of key aircraft programmes such as the 737 MAX.

During the most recent strike, Boeing saw many of its fundamental employees responsible for building the MAX walk off the job. Given that this is the planemaker’s most important series for output, the ramifications are more than felt.

However, even with them back, the Federal Aviation Administration (FAA) has barred Boeing from increasing production to the rates it would like for fear of the impact this would have on the ongoing turnaround efforts and investment in safety.

How This Impacts Boeing’s Next Aircraft

Much of Boeing’s next commercial airliner has remained under wraps for some time. However, the consensus has always been that a middle-of-the-market airliner would be the most optimal choice to progress with.

Unfortunately, with the financial impact, Ortberg has confirmed that they’re burning through billions of dollars, which has been known for some time but is an increasing concern.

The planemaker added that it doesn’t expect to become cash-positive until it can increase production across its aircraft programmes. Still, a timeframe hasn’t been given for when this will be possible.

Moreover, all this affects Boeing’s attempts to launch a new commercial airliner. In fresh updates, Ortberg confirmed that he didn’t feel a new plane was needed. However, any attempts to launch such a plane would not be possible in Boeing’s current financial state.

These problems have greater ramifications for Boeing, as while work can be conducted on other aspects looking ahead, it’s unable to progress. This gives competitor Airbus the continued opportunity to get even further ahead and take advantage of Boeing’s misfortune, which is arguably only caused by its own decision-making.