Boeing Strike Threatens Global Jetliner Supply and Airfares
Boeing's first workers' strike in 16 years may worsen global jetliner shortages, increase airfares, and force airlines to keep older jets in service longer. The strike interrupts 737 MAX production, potentially impacting Boeing's output and market recovery. Analysts suggest rising airfares could eventually dampen travel demand.
Boeing's first strike in 16 years threatens to exacerbate global jetliner shortages, driving up airfares and compelling airlines to rely on aging aircraft, industry insiders reveal.
Triggered by the rejection of a contract deal, the strike by West Coast workers halted production of Boeing's pivotal 737 MAX. Boeing CFO Brian West cautioned that a sustained walkout could derail output and jeopardize recovery efforts.
Ross O'Connor, CFO of Avolon, underscored Boeing's critical role in global aviation, emphasizing that the strike could deepen existing supply shortages. Meanwhile, robust aviation demand faces bottlenecks with parts shortages, recruitment hurdles, and maintenance delays.
Rob Morris of Cirium Ascend predicted extended imbalances, possibly corrected only by weakened demand. High airfares might hasten this tipping point, according to aviation economist Adam Pilarski. Concurrently, Airbus grapples with production targets amid its own supply challenges.
The aviation sector, while committed to net zero emissions by 2050, struggles as aging fleets drive up CO2 emissions. A prolonged Boeing strike may further strain an industry already battling to meet environmental goals.
(With inputs from agencies.)
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