By Tim Hepher and Lisa Barrington
DUBAI (Reuters) – Boeing’s next CEO should understand what led to the current crisis and be willing to look outside for examples of best industry practices, the president of the International Air Transport Association said on Sunday.
US aircraft manufacturer Boeing is plunged into a widespread safety crisis, exacerbated by the in-flight panel explosion of a nearly new 737 MAX plane in January. CEO Dave Calhoun is set to leave the company by the end of the year as part of a broader management shakeup, but Boeing has yet to name a replacement.
“It’s not for me to say who should run Boeing. But I think it’s very important to understand what went wrong in the past,” said IATA Director General Willie Walsh , to Reuters TV at an airline conference in Dubai, adding that Boeing was taking the right steps.
IATA represents more than 300 airlines, representing around 80% of global traffic.
“Our industry benefits from learning from its mistakes and sharing that learning with everyone,” he said, adding that this process should include “an acknowledgment of what went wrong, a review best practices, a review of what others are doing.
He said it was essential that the industry had a culture “where people feel safe to raise their hands and say things aren’t working the way they should”.
Boeing faces investigations from U.S. regulators, possible lawsuits over past actions and a slowdown in production of its best-selling plane, the 737 MAX.
“RIGHT STEPS”
Calhoun, a Boeing board member since 2009 and a former GE executive, was named CEO in 2020 to help turn around the aircraft maker following two fatal crashes involving the MAX, its best-selling plane.
But the planemaker has lost market share to rival Airbus, with its stock losing nearly 32% of its value this year as MAX production fell this spring.
“The industry is frustrated with the problems resulting from Boeing’s problems. But personally, I’m happy to see they’re taking the right steps,” Walsh said.
Delays in the delivery of new jets from Boeing and Airbus are part of broader problems in the aerospace supply chain and aviation maintenance sector, complicating airlines’ growth plans.
Walsh said the supply chain issues are not easing as quickly as airlines would like and could last until 2025 or 2026.
“It’s probably positive that the situation isn’t getting worse, but I think it’s going to be a feature of the industry for a few years to come,” he said.
Earlier this year, IATA brought together a number of airlines and manufacturers to discuss ways to mitigate the situation, Walsh said.
“We are trying to ensure that there is an open and honest dialogue” between them, he said.
(Reporting by Tim Hepher and Lisa Barrington in Dubai; editing by Hugh Lawson and Andrew Cawthorne)
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