Emirates chief backs Boeing-Spirit merger amid factory crisis

Emirates CEO

Emirates CEO Supports Potential Boeing-Spirit Merger Amid Quality Concerns

Emirates, a major Boeing customer, expresses backing for a potential merger between Boeing and Spirit AeroSystems to address Boeing's industrial and quality crisis. US regulators are auditing Boeing and Spirit factories after recent safety incidents, prompting concerns about Boeing's future.

Tim Clark, president of Emirates, emphasizes the urgency for Boeing to address its quality issues promptly, suggesting that failure to do so could jeopardize its standing in the industry. Boeing is reportedly in talks to acquire Spirit, its former subsidiary, while Airbus explores the possibility of taking over some Spirit operations.

Spirit plays a crucial role in Boeing's production, manufacturing a significant portion of the 737 MAX, as well as components for other Boeing aircraft ordered by Emirates. Clark questions Boeing's decision to spin off Spirit in 2005 and suggests it has been problematic for Boeing since.

While Clark refrains from explicitly calling for leadership changes at Boeing, he suggests the need for new governance and emphasizes the importance of the company's board being directly involved in resolving the crisis.

Clark underscores the gravity of Boeing's situation, urging the company to prioritize addressing its quality issues above all else to avoid risking its existence. He acknowledges Boeing CEO Dave Calhoun's efforts but stresses the necessity of decisive action by the entire board.

Regarding another dispute with Rolls-Royce over engine durability for the A350-1000, Clark indicates some progress but insists on maintenance improvements before considering orders for the Airbus jet.

Despite challenges, Clark anticipates sustained demand in the airline industry, leading to higher fares, and observes increased air cargo activity due to disruptions in maritime shipping routes.