One year after placing a record-shattering $52 billion order, Emirates Airlines voiced frustration with Boeing (NYSE:BA) over delays in aircraft deliveries.
"We're a frustrated entity because we need airplanes, and we need them now," Emirates President Sir Tim Clark told BNN Bloomberg, extending his criticism to Airbus. He blamed both plane makers for being late and providing aircraft that didn't meet his specifications.
Boeing did not immediately respond to Benzinga's request for comment.
Clark, who announced the deal at the 2023 Dubai Air Show, expressed uncertainty about when the first 205 Boeing 777X aircraft will finally enter service, as this flagship model is currently five years behind schedule.
Boeing's operational challenges have increased over the years, drawing significant attention after a door plug blew out on an Alaska Airlines 737 MAX flight in January.
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Eventually, the company appointed Kelly Ortberg as CEO in August, following his tenure as the leader of Collins Aerospace. Since taking the helm, Ortberg has focused on resolving production bottlenecks, dedicating substantial time to Seattle's manufacturing facilities.
However, a seven-week strike involving 33,000 workers halted most jet production, reducing September deliveries to just 27 737 MAX aircraft, far below the 38 allowed by regulators.
Although management has reached a strike-ending deal, the union failed to reach one of its main goals—the reinstatement of a traditional pension plan that was frozen a year ago. Per HR Brew's report, analysts estimated such a deal could cost Boeing over $1.6 billion annually—a sum that the company with negative shareholder equity and over $57 billion in debt cannot afford.
In fact, Boeing still needs to undergo a significant overhaul. To manage financial strain and improve operational efficiency, it will cut its global workforce by 10%, totaling 17,000 jobs, including 2,500 in the U.S.
Despite the setbacks, Clark remains cautiously optimistic about Boeing's turnaround under Ortberg's leadership, though he stressed the need for visible improvement soon. The delays have forced Emirates to invest $4 billion to upgrade its current fleet of A380s and older 777 jets, bridging the gap until new aircraft arrive.
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