- Kelly Ortberg, CEO of Boeing, stated that new aircraft development is hampered by a backlog of existing orders, indicating that the company is not yet ready to move forward with new designs.
- Ortberg emphasized that orders are not the challenge for Boeing; rather, the focus is on delivering existing orders that are delayed.
- Boeing and Airbus are mapping out the next generation of narrow-body aircraft, but airlines are currently more focused on receiving existing jets than pushing for new models.
- Ortberg noted that improving Boeing's finances and production reliability is essential before introducing a new jet, which will take a couple more years.
- The FAA is expected to approve Boeing's 737 MAX 7 certification soon, which is a critical milestone for the company.
Boeing CEO Kelly Ortberg revealed that the company is currently focused on addressing a backlog of existing aircraft orders before pursuing new designs.12
"We don’t have a firm configuration right now," Ortberg stated, indicating that while early work on a new airplane design has begun, the company is not ready to advance.
Before launching a new airplane, Boeing aims to improve its financial standing and fulfill delayed deliveries, including the much-anticipated 777X wide-body jet. Ortberg noted, "Orders are not our challenge. Our challenge is getting these orders delivered."
The CEO emphasized that the market must be prepared for new aircraft, as current airline customers are prioritizing the maturity of existing models. He remarked, "Right now, the customers are telling me, 'focus on your existing product line.'"
Analysts from RBC Capital Markets highlighted that investors are keenly focused on Boeing's ability to enhance production of the 737 Max and 787, complete certification of the Max 7 and Max 10, and improve margins.
With Airbus also facing a backlog of over 9,000 aircraft, both manufacturers are under less pressure from customers to expedite new aircraft development, allowing them to concentrate on fulfilling existing orders.
The eventual successors to Boeing's 737 Max and Airbus' A320neo families are expected to significantly influence competition in the commercial aircraft market for years to come.
“Ortberg said Boeing must improve its finances and deliver delayed models like the 777X before launching a new jet; the FAA could approve the 737 MAX 7 as soon as late July. Airbus CEO Guillaume Faury, meanwhile, targets a next-generation single-aisle launch around 2030, with entry into service in the second half of the following decade.”
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