Ryanair is one of Boeing’s largest customers, making Michael O’Leary’s comments during the carrier’s earnings call significant to the plane maker. O’Leary did not identify a preferred candidate for Boeing’s new CEO, stating that the company is more focused on maintaining the good work being done in Seattle by Stephanie Pope and her team. Pope, who was appointed as CEO of Boeing Commercial Airplanes in March, has been tasked with improving safety and quality after a challenging period for the business. Speculation about potential CEO candidates includes Pope, Larry Culp of GE Aerospace, and Pat Shanahan of Spirit Aerosystems.
O’Leary has been critical of what he called “corporate bullsh*t” at Boeing, but during the recent earnings call, he praised the improvements in the quality of Boeing’s new 737 Max planes. Despite some progress, there are still challenges with delivery bottlenecks at Boeing, affecting Ryanair’s fleet of Boeing 737 Max 8s. While the airline hopes to increase its fleet by the end of July, there are concerns about delays impacting its summer operations. O’Leary expressed confidence in Pope and her team in Seattle, urging Boeing to continue their progress.
Due to the delivery challenges with Boeing, Ryanair has adjusted its full-year traffic forecast, reducing it from 205 million passengers to between 198 and 200 million. However, the airline still plans to operate its largest-ever summer schedule with new routes and additional airport bases. Despite these challenges, Ryanair remains one of Boeing’s biggest customers in Europe, with over 500 jets in its fleet and more on order, making O’Leary’s opinions on Boeing’s performance significant.
The potential appointment of a new CEO for Boeing is being closely watched by industry observers, with speculation about candidates including Stephanie Pope, Larry Culp, and Pat Shanahan. O’Leary’s comments on Boeing’s current performance and delivery challenges highlight the importance of the leadership transition for the company’s future. With Ryanair’s sizable fleet of Boeing jets, O’Leary’s observations on Boeing’s progress and the need for improvement in delivery efficiency carry weight within the industry.
Boeing’s leadership shake-up earlier in the year saw Stephanie Pope taking on the role of CEO for Boeing Commercial Airplanes, tasked with enhancing safety and quality within the company. O’Leary’s positive feedback on the improvements in the quality of Boeing’s new planes, despite ongoing delivery challenges, indicates that the company is making progress under Pope’s leadership. As a major customer of Boeing, Ryanair’s operations and growth plans are directly affected by the performance of the aircraft manufacturer, making O’Leary’s comments a valuable insight into the industry dynamics.
Overall, the relationship between Boeing and Ryanair is crucial for both companies, with O’Leary’s feedback providing valuable feedback on Boeing’s performance and delivery challenges. The potential impact of a new CEO appointment at Boeing, along with the ongoing efforts to overcome delivery bottlenecks, will determine the future of the partnership between the plane maker and the airline. O’Leary’s candid remarks during the earnings call underscore the importance of maintaining quality and efficiency in aircraft deliveries for Ryanair’s operations and continued growth.
