Boeing's growing list of woes is helping its European rival Airbus have a bigger edge in the plane makers' duopoly of the skies, with the attention now more on quality.
The US plane maker may be forced to accept a lower market share in terms of volume than previously, as there is now a clear focus on quality, according to Cirium Ascend Consultancy.
“While Boeing may have focused on defending market share in the past, it’s current focus is clearly on quality and not quantity,” Chris Wills, head of consultancy operations at Cirium Ascend Consultancy, said.
“We might see Boeing accept lower market shares for the time being in terms of volume than we have in the last two decades.”
In February, Airbus delivered 49 commercial planes to 28 customers, according to its latest report. In contrast, Boeing handed over 27 aircraft last month to 22 customers.
In the first two months of 2024, the US company has delivered 54 planes, while Airbus has widened its lead over its rival, delivering 79 planes so far this year.
The tides have turned against Boeing in the last few years amid a barrage of negative developments including two fatal crashes of its 737 Max model and a long grounding of its aircraft.
A series of incidents involving Boeing jets this year, including the in-flight blowout of a 737 Max 9 door plug of an Alaska Airlines plane, have continued to plague the company. This has forced airlines to re-examine their fleet expansion plans amid slower production rates and delayed deliveries.
Boeing's share price has plummeted 29 per cent this year, dragging its market valuation down to $112.4 billion and marking its lag behind Airbus by the most ever.
The Arlington, Virginia-based company is valued about $24 billion lower than its Toulouse-based competitor, as of market close on Tuesday.
Boeing's plans to acquire its supplier (and former subsidiary) Spirit AeroSystems could enhance quality, enabling a faster pathway to the higher production rates needed to boost profit and cash flow, according to a research note by Bloomberg Intelligence.
“A Boeing purchase of Spirit Aerosystems is likely the safest and fastest way to stabilise production for its two most important airplanes, the 737 and 787, and boost build rates, which will improve cash flow and profit,” George Ferguson and Melissa Balzano, Bloomberg Intelligence's aerospace industry analysts, said in the report last week.
The US Federal Aviation Authority (FAA) has imposed curbs on Boeing 737 Max production rate after the 737 Max incident when a door plug blew off at 16,000 feet above the ground on January 5. This has led to probes into the Boeing's safety and quality standards in its production process.
“At the core of Boeing's turnaround is increasing build rates to reduce overhead costs and improve economies of scale,” Mr Ferguson and Ms Balzano said.
“Recent challenges in the manufacturing process are preventing these increases and heightening the risk of a prolonged market share below Airbus.”
Boeing's latest manufacturing problems likely stem in large part from high employee turnover in the wake of the Max groundings, the pandemic and the difficulty in replacing skilled workers, Mr Ferguson said in a separate report.
Frustrated customers
A slower production rate and delivery delays at Boeing have frustrated airline chief executives who are eager to ramp up capacity to meet a post-Covid boom in travel demand.
Dallas-based Southwest, the biggest customer for the smaller Boeing Max 7, said in a regulatory filing on Tuesday that Boeing has advised it to expect 46 of the 737 Max 8 aircraft deliveries in 2024, a reduction from the previously expected 79 Max aircraft deliveries.
“As a result of Boeing's continued challenges, the company expects the delivery schedule to be fluid and, therefore, plans to reduce capacity and re-optimise schedules, primarily for the back half of 2024,” Southwest said.
This will likely result in a full-year capacity cut by one full point, it said.
As a result, the airline is also re-evaluating all prior full-year 2024 guidance, including the expectation for capital spending, it said.
Last week, Etihad Airways' chief executive said jet delivery delays by Boeing are hampering the airline's network growth plans.
The airline took delivery of three new Boeing 787-9 Dreamliners in February, eight months later than the scheduled handover date in June 2023, which has affected route network plans, Antonoaldo Neves told The National.
If delays continue at Boeing, it could lose further market share to Airbus, analysts previously told The National.
Airbus could secure more orders from airlines re-evaluating their fleet strategies, particularly for narrow-body aircraft where the A320 family competes directly with the 737 Max, they said.
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
How it works
Booklava works on a subscription model. On signing up you receive a free book as part of a 30-day-trial period, after which you pay US$9.99 (Dh36.70) per month to gain access to a library of books and discounts of up to 30 per cent on selected titles. You can cancel your subscription at any time. For more details go to www.booklava.com
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Pupils in Abu Dhabi are learning the importance of being active, eating well and leading a healthy lifestyle now and throughout adulthood, thanks to a newly launched programme 'Healthy Lifestyle'.
As part of the Healthy Lifestyle programme, specially trained coaches from City Football Schools, along with Healthpoint physicians have visited schools throughout Abu Dhabi to give fun and interactive lessons on working out regularly, making the right food choices, getting enough sleep and staying hydrated, just like their favourite footballers.
Organised by Manchester City FC and Healthpoint, Manchester City FC’s regional healthcare partner and part of Mubadala’s healthcare network, the ‘Healthy Lifestyle’ programme will visit 15 schools, meeting around 1,000 youngsters over the next five months.
Designed to give pupils all the information they need to improve their diet and fitness habits at home, at school and as they grow up, coaches from City Football Schools will work alongside teachers to lead the youngsters through a series of fun, creative and educational classes as well as activities, including playing football and other games.
Dr Mai Ahmed Al Jaber, head of public health at Healthpoint, said: “The programme has different aspects - diet, exercise, sleep and mental well-being. By having a focus on each of those and delivering information in a way that children can absorb easily it can help to address childhood obesity."
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More from Neighbourhood Watch:
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
if you go
Getting there
Etihad (Etihad.com), Emirates (emirates.com) and Air France (www.airfrance.com) fly to Paris’ Charles de Gaulle Airport, from Abu Dhabi and Dubai respectively. Return flights cost from around Dh3,785. It takes about 40 minutes to get from Paris to Compiègne by train, with return tickets costing €19. The Glade of the Armistice is 6.6km east of the railway station.
Staying there
On a handsome, tree-lined street near the Chateau’s park, La Parenthèse du Rond Royal (laparenthesedurondroyal.com) offers spacious b&b accommodation with thoughtful design touches. Lots of natural woods, old fashioned travelling trunks as decoration and multi-nozzle showers are part of the look, while there are free bikes for those who want to cycle to the glade. Prices start at €120 a night.
More information: musee-armistice-14-18.fr ; compiegne-tourisme.fr; uk.france.fr
Match info
Bournemouth 0
Liverpool 4 (Salah 25', 48', 76', Cook 68' OG)
Man of the match: Andrew Robertson (Liverpool)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
THREE
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EXPATS
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If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes.
The car
Hertz offers compact car rental from about $300 (Dh1,100) per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
The national park
Entry to Mount Rainier National Park costs $30 for one vehicle and passengers for up to seven days. Accommodation can be booked through mtrainierguestservices.com. Prices vary according to season. Rooms at the Holiday Inn Yakima cost from $125 per night, excluding breakfast.
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter
MATCH INFO
Day 2 at the Gabba
Australia 312-1
Warner 151 not out, Burns 97, Labuschagne 55 not out
Pakistan 240
Shafiq 76, Starc 4-52
SHOW COURTS ORDER OF PLAY
Wimbledon order of play on Tuesday, July 11
All times UAE ( 4 GMT)
Centre Court
Adrian Mannarino v Novak Djokovic (2)
Venus Williams (10) v Jelena Ostapenko (13)
Johanna Konta (6) v Simona Halep (2)
Court 1
Garbine Muguruza (14) v
Svetlana Kuznetsova (7)
Magdalena Rybarikova v Coco Vandeweghe (24)
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
UAE currency: the story behind the money in your pockets
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Veere di Wedding
Dir: Shashanka Ghosh
Starring: Kareena Kapoo-Khan, Sonam Kapoor, Swara Bhaskar and Shikha Talsania
Verdict: 4 Stars
