Korean Air has passed over embattled Boeing (typically the carrier’s top aircraft supplier) to order 33 Airbus A350 wide-body jets in a $14bn (€13bn) deal as it seeks to streamline its fleet. The move has put the spotlight on Ryanair, whose fleet is based on Boeing planes.
Boeing has been engulfed in crisis after regulators swooped to examine all parts of its manufacturing processes in the US, following the blowout of a panel on an airborne Max plane above Portland in Oregon in January.
The order will see the Seoul-based carrier buy 27 of Airbus’s largest twin-aisle jet, the A350-1000, and six smaller A350-900s, which it selected over Boeing’s yet-to-be-certified 777X. The €13bn deal is before customary discounts.
Airbus also scored another victory with Japan Airlines buying 42 jets, picking 21 A350-900s and 11 A321neos, while Boeing scored a consolation order of 10 787-9s.
The orders have put the spotlight on Ryanair, another of Boeing’s major global customers. The airline has already said it will take delivery of 10 fewer Boeing planes than expected by this summer because of the production turmoil facing the US planemaker. Ryanair said the Boeing delays will lead to Ryanair cutting frequencies this summer, including at Dublin Airport.
Ryanair has also placed one of the world’s largest orders for the still-to-be-certified Max 10 planes. The airline hopes to start taking delivery of some of the massive order starting in less than 36 months. Last May, it said it had ordered 300 new Max 10 planes worth over $40bn (€36.5bn). Ryanair chief Michael O’Leary said this week he was meeting with Boeing executives.
Boeing directors are meeting with top executives from some of the largest airline customers, who are growing increasingly frustrated about the crisis. Boeing’s chief executive Dave Calhoun will not participate in the gatherings, said people familiar with the matter. Larry Kellner, the chairman of Boeing’s board, is spearheading the unusual listening tour.
A sweeping audit of Boeing and its suppliers by the US Federal Aviation Administration has raised concerns about the company’s safety culture, the agency’s top official said earlier this week. Boeing’s largest US customers include American Airlines, United Airlines, Delta Air Lines, Southwest Airlines, as well as Alaska Air which operated the plane on which the panel blew out in January.
Irish Examiner; Bloomberg