boeing Chief Executive Officer Kelly Ortberg told CNBC on Monday that it will take the airline “a few more years” to rebuild its finances before launching a new jet, suggesting the airline is focused on stabilizing its existing business rather than rushing to develop a successor to its best-selling 737 MAX.
Ortberg told CNBC’s Phil LeBeau at the Farnborough International Air Show in the UK that Boeing needs to clear three hurdles before committing to a new aircraft program.
“First of all, we have to be prepared. Part of that is getting our financial institutions ready, and we’re working on that,” Ortberg said. “It will take several more years to get to where we want to go.”
Ortberg, who came out of retirement to stabilize the company after a series of manufacturing and quality problems and a near-catastrophic explosion of a fuselage door plug in January 2024, also reiterated that the technology must be ready to introduce new planes and that the company must find sufficient market demand.
For now, airline customers are asking Boeing to focus on improving the reliability and production of its current lineup rather than introducing new jets, he said, suggesting the company is unlikely to launch a new narrow-body jet until the second half of the decade.
The large commercial aircraft market is currently dominated by Boeing and airbus. The new aircraft, which will make it more competitive with Airbus’ rival A320 family of jets, is likely to be crucial to securing future business for Boeing.
Boeing and Airbus stock prices will rise this year.
On Monday, Airbus CEO Guillaume Faury told CNBC that the company aims to develop a next-generation single-aisle jet around 2030, with plans to enter service later in the decade, calling it key to preserving Airbus’ lead in the market.
“We are the leader in the single-aisle segment and we want to maintain that position,” Mr Foley said on the sidelines of Farnborough, adding that he was also focused on increasing production of current aircraft.
Boeing and Airbus are both suffering from supply shortages in the wake of the coronavirus pandemic and are struggling to meet customer demand for new aircraft.
Investor sentiment around Airbus has worsened this year as Boeing makes strides under Ortberg to get back on track after years of financial crisis.
Both companies are scheduled to announce second-quarter financial results later this month.
air force one
Ortberg said Boeing will increase spending and hire more engineering and production staff to deliver the next-generation Air Force One aircraft on time for delivery in 2028.
The company plans to implement multiple shifts and add production and engineering staff on the VC-25B program, the CEO said.
The high-profile project has already faced multiple delays and was originally scheduled for completion in 2024.
