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Major aircraft lessor Avolon says Boeing has ‘lost its way’

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DUBLIN, May 5 (Reuters)The head of the world’s second-largest aircraft leasing company said Thursday that Boeing had “lost its way” and may need new leadership to mend a corporate culture that had become “totally warped”.

Avolon chief executive Domhnal Slattery’s comments represented a rare public rebuke of Boeing by a major customer, despite it canceling orders for more than 100 737 MAX jets during the COVID pandemic.

Boeing did not immediately respond to an emailed request for comment.

“I think it’s fair to say that Boeing has lost its way,” Slattery told the Airfinance Journal conference in Dublin, a gathering of the world’s aircraft lessors who together own most of the world’s passenger planes. world.

“Boeing needs to fundamentally rethink its strategic relevance in the market,” he said, adding that it would require “a new vision, maybe a new leadership.”

Boeing shares fell to a nearly 1.5-year low last week after the U.S. aircraft maker posted a quarterly loss, disclosed $2.7 billion in additional charges and costs and expressed doubts about achievement of 737 MAX delivery targets.

Boeing also said it was halting production of the 777X until 2023 and did not say when it would resume deliveries of its key twin-aisle 787 Dreamliner model.

“They’re burning cash at an unprecedented level. They’re probably going to be downgraded,” Slattery said.

Slattery said Boeing’s culture had become “totally warped” but the issues could eventually be resolved.

“I’m confident they’ll find out,” Slattery said.

(Writing by Conor Humphries; Editing by Jan Harvey and Bernadette Baum)

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