Boeing focused on winning back public's trust: Executive VP Raymond

“There's no question we broke some of that trust with people. So, we've got to earn that back. And, the only way to earn that back is by delivering a high-quality product, safe product on time," Chris Raymond, executive vice president of The Boeing Company and president and chief executive officer of Boeing Global Services, told Mint in an interview in New Delhi. “We have to just stay focused on that and not sort of get caught up in all the noise and people's opinions."

Boeing reported a net loss of $1.44 billion in the June quarter, primarily due to major cash burn in its defence, space and security unit as a result of cost overruns. It reported a loss of $149 million a year earlier.

Also Read: Boeing Max deliveries are going to taper off. What about Akasa and AI Express?

The investigation into the 737 MAX aircraft has also affected Boeing’s aircraft delivery rate as the US aviation regulator has restricted the production of MAX aircraft to 38 per month. However, output has been even lower than this on account of supply chain challenges. Delayed deliveries have affected MAX aircraft customers including Akasa Air and Air India Express in India.

Supply chain issues

“We just have to get to the point where those airplanes are more predictably being delivered to them (airlines). And we've struggled with that. So, what we're focused on is safety, quality and getting those airplanes certified so they can start to deliver. Supply chain issues are slightly getting better. We are focused right now on getting MAX back to 38 (aircraft per month), getting all the inventory that was parked, delivered, and then getting B787 and B777," Raymond said.

In India, Boeing faces tough competition from French aerospace company Airbus. Since 2023, Indian carriers such as IndiGo, Air India, and Akasa have placed cumulative orders for 1,150 narrow-body and wide-body aircraft – 780 from Airbus and 370 from Boeing. The latest order for 30 wide-body aircraft was placed by IndiGo, an all-Airbus customer, in April after it ordered 500 narrow-body Airbus aircraft in June 2023.

Also Read: Airlines ready to trust Boeing again, but want quality and safety in place

“We wish they would have chosen us. But if a customer doesn't choose us, we have a bunch of other ways we try to help them make their airline successful… You compete hard and then you try to help them regardless of the airplane they picked," he said.

Boeing Global Services delivers complete service solutions for commercial, defence and space customers, regardless of their equipment's original manufacturer. The company services not only Boeing airplanes, but airlines with other kinds of products including digital solutions, crew planning or charting, and navigation and distribution services.

Boeing reiterated that it is seeking more partnerships in India across maintenance, repair, overhaul, and aerospace product supplying opportunities. Boeing sources $1.25 billion worth of products from over 300 suppliers in India every year.

Also Read: Mint Explainer: Why Boeing is making headlines again

On Tuesday, Boeing tied up with state-run AI Engineering Services Ltd to develop the capability to overhaul landing gear for the Indian Navy’s fleet of 12 Boeing P-8I aircraft. Earlier, these aircraft had to be shipped outside for overhaul services.

The Boeing P-8I is a multi-role long range maritime reconnaissance anti-submarine warfare aircraft used by the Indian Navy for surveillance missions in the Indian Ocean.

“I see India as a strategic aviation market for the next five, probably 20 years, actually. I think that the demand is going to continue to come. And, it has historically been associated with GDP and the per capita living of people, you know, it grows, then everybody wants to travel. And, so there's been a high correlation to that over history. And I don't think we expect it to be any different in India," he added.