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American Focus > Blog > World News > How Boeing Strike Could Make The Global Jetliner Shortage Worse
World News

How Boeing Strike Could Make The Global Jetliner Shortage Worse

Last updated: September 14, 2024 6:11 am
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How Boeing Strike Could Make The Global Jetliner Shortage Worse
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Boeing 737 MAX aircraft are assembled at the company’s plant in Renton, Washington, US

Washington:

Boeing’s recent strike, the first in 16 years, has the potential to worsen the global shortages of jetliners, leading to increased airfares and airlines having to operate older aircraft for longer periods, industry experts and analysts have warned.

The strike by Boeing’s West Coast workers, which began at midnight on Friday after rejecting a contract deal, has halted production of the company’s popular 737 MAX aircraft.

Boeing’s Chief Financial Officer Brian West has cautioned that an extended strike could negatively impact production and hinder the company’s recovery.

“Boeing plays a crucial role in global aviation,” said Ross O’Connor, CFO of Irish leasing company Avolon. “A strike could further exacerbate the existing supply shortages in the market.”

Airlines have been facing challenges in expanding their fleets to meet growing demand due to parts shortages, recruitment issues, and overburdened maintenance facilities.

Analysts have expressed concerns that the industry may face a shortage of supply before airlines can fully capitalize on the increasing demand.

As the industry grapples with these challenges, the average age of aircraft in operation has been on the rise, despite efforts to modernize fleets for sustainability goals.

The aviation industry aims to achieve net zero emissions by 2050, but the reliance on older aircraft could hinder these efforts and lead to increased carbon emissions.

Despite the setbacks faced by Boeing and Airbus, the airline industry remains optimistic about achieving its sustainability targets and addressing the ongoing supply shortages.

See also  Foodstuffs merger blocked by Commerce Commission

(This article is generated from a syndicated feed and has not been edited by the platform’s staff)

TAGGED:BoeingglobalJetlinerShortageStrikeWorse
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