One of the world’s top aircraft lessors sees evidence that Boeing is making progress in addressing its longstanding quality troubles.
Fitch Ratings also sees positive signs.
“We have seen a marked improvement in the quality of the product, the reliability of the product and the safety of the product,” Aengus Kelly, chief executive of aircraft lessor AerCap, said of Boeing during 12 March interview on CNBC.
“Boeing has made tremendous steps, in terms of quality, safety and reliability, over the last year. We see it because we are on the shop floor, buying airplanes every day,” he adds.
AerCap holds unfilled orders for 59 Boeing jets, according to Cirium fleets data.
Those comments came the day after Boeing disclosed having delivered 44 aircraft in February, roughly the same number it handed over the prior month, signalling a degree of stability.
On 11 March, Fitch said it views Boeing as having “made early progress in resuming production post-strike, reducing legacy inventory and managing supply chains”, while noting that the company raised $24 billion in funding late last year.
Also late last year, Boeing’s deliveries had slowed to a crawl due to a nearly two-month strike by its machinists. That strike caused Boeing to halt production in the Pacific Northwest.
Fitch says Boeing’s progress since the strike suggest it can boost 737 production to 38 jets monthly by the third quarter. “While this represents a slight delay from Fitch’s previous expectations, other operational milestones remain broadly on track,” the rating agency says.
Firth adds that Boeing’s revenue and profitability remain hindered by “constrained” production, saying it does not view possible retaliatory tariffs as posing a significant risk.
