Not ready for takeoff

For many years Boeing dominated aviation — it was the single biggest exporter in the US and sat at the very heart of the military-industrial complex that embodied the superpower’s leadership in defence and aerospace.

Few would ever have foreseen that it would end up having its lunch eaten by Airbus, an operation that required co-operation across Europe and didn’t even become a company until 2001.

Somehow the mood changed from “If it ain’t Boeing, I ain’t going” to the dark days of the 737 Max, which killed 346 people in two separate crashes.

Now the head of the world’s second-largest aircraft leasing company has told the Airfinance Journal conference that Boeing has “lost its way”, that it “has to fundamentally reimagine its strategic relevance in the marketplace”, and that this will require “fresh vision, maybe fresh leadership”.

Boeing shares slumped to an 18-month low last week as the company announced a quarterly loss with $2.7bn in charges and added costs, and admitted doubts on whether it would hit 737 Max delivery targets.

Regulatory issues have interrupted 787 deliveries and delayed the 777X, just as Airbus announced plans to raise singleaisle jet production 50% by 2025. Airbus’s A320 is now the single best-selling aircraft ever, and it plans to produce 75 a month, compared with Boeing’s production of 31 737s a month this year.

Add to the mix the likelihood of a major change in how aircraft are powered, moving from hydrocarbons to electric or hydrogen, and it is clear that some major strategic decisions are needed at Boeing.