Boeing’s leader meets a hard audience at Paris Air Show
At this week’s Paris Air Show, Boeing CEO Dennis Muilenburg will have his job worked out for him as he attempts to warn carriers and business associates about the destiny of his flagship 737 MAX aircraft, suspended permanently after two deadly accidents.
Last month’s conference of aviation authorities was unable to determine when the famous jet could be permitted to travel again, creating expensive headaches for carriers around the world.
“Air display is a great chance to communicate with clients, vendors and partner aerospace companies to enhance our relationships and promote the safety of the sector,” Muilenburg published over the weekend on Twitter.
He has already apologized and promised to find a solution for the automatic anti-stall scheme of the 737 MAX, criticized for an Ethiopian Airlines collision in March and an Indonesian Lion Air crash in October that took 346 life together.
But subsequently on Sunday (Jun 16) he recognized the job they still had to do in remarks to reporters.
“We have a job to do to gain back the public’s confidence,” Muilenburg said.
“We went to this safety-focused salon. We arrive with a feeling of humility and teaching, still trusting in our industry-but it’s a modest trust.” But claims that US safety authorities may have allowed Boeing technicians to self-certify some of the aircraft’s facilities to undermine the company’s trust.
“It had a very strong effect on the brand and credibility of Boeing,” Pascal Fabre said at Alix Partners management company.
The crises has also hit drivers as well as domestic aviation authorities who are worried about a absence of adequate American heavyweight supervision.
And on the economic front, it could provide an opportunity for Archrival Airbus to gain fresh clients for its own single-aisle jet class A320, which is by far the largest proportion of the flights of aircraft.
Nearly 290 formal delegations, many of whom will likely want a talk with Muilenburg, will be alongside the nearly 2,500 companies coming down this week on Bourget airport south of Paris.
He faces calls for reward from carriers that had to locate other aircraft or withdraw fares immediately after their 737s had been cancelled.
Boeing projected that the catastrophe would cost it US$ 1 billion in early April, but the proposal will surely grow the longest the aircraft remain on the floor.
If Boeing is discovered to have been negligent, families of the Ethiopian Airlines survivors and Lion Air crashes may also file for damages.
And there are also many of its providers seething. General Electric, whose CFM division with its French subsidiary Safran produces the 737’s motors, said the groundings could earn it in the second half alone $200 million to $300 million.
Alexandre de Juniac, Chief Executive Officer of the International Air Transport Association (IATA), said it may not be before August.
But some carriers take no odds with American Airlines canceling all of its 737 MAX fares to Sep 3 last week.
Global authorities have so far depended on a shared reciprocity scheme for certifying aircraft, but the EU, Canada and Brazil have stated that they will take out their own review of any solution for the 737 MAX.
“Our vision is that we will have a wide global balance with the FAA,” Muilenburg said last month at an investor meeting in New York, relating to the Federal Aviation Administration of the United States.
Boeing now has 140 737 MAXs stationed on its tarmac ready for shipment, and was earlier forced to decrease monthly manufacturing from 52 to 42 aircraft.