The largest strike in Boeing's history, involving around 33.000 workers, could have far-reaching consequences for the US aircraft manufacturer's aircraft deliveries and the production of new models.
Ryanair Group CEO Michael O'Leary recently expressed concerns that a prolonged industrial dispute could affect planned deliveries of Boeing 737 MAX aircraft to Irish ultra-low-cost carrier Ryanair.
Strike and its possible consequences
The strike, which began on September 12, 2024, came about after Boeing workers overwhelmingly rejected a new labor contract. Union members rejected the contract by a majority of 94,6 percent, while 96 percent voted in favor of the strike. The disputes revolve around issues of working conditions and pay and have led to one of the most serious work stoppages in the last 16 years.
Michael O'Leary, who heads one of Boeing's biggest customers, has expressed his concerns in an interview with Newstalk Radio. He explained that the strike could have a significant impact on the schedule of aircraft deliveries to Ryanair. Originally, Ryanair was scheduled to receive a total of 2025 Boeing 30 MAX aircraft by the summer of 737. Due to production bottlenecks and delays, this number has already had to be reduced to 25. If the strike lasts three to four weeks, O'Leary fears, the number of aircraft delivered could even drop to just 20.
Impact on production and the Boeing 797
However, the strike could not only affect deliveries to Ryanair. The production of the new Boeing 797 commercial aircraft, which is manufactured in a unionized factory, is also at risk. The Boeing 797 is a key model for the company's future development and is of great importance to the aviation industry. Production delays for this model could therefore also have far-reaching effects on the market.
Boeing has already expressed confidence that the problems with the unions can be resolved. Michael O'Leary said he has no doubt that Boeing will resolve the matter, even if it may take several weeks. He stressed that the company has a strong incentive to end the strike quickly in order to get back on track with production plans and delivery dates.
The situation also has implications for the entire aviation industry, as Boeing is crucial not only for Ryanair but also for many other airlines around the world. The strike could lead to further delays in the delivery of new aircraft and potentially also drive up prices for leasing and purchases.
There seems to be no end in sight to the strike, as negotiations between Boeing and the unions are still ongoing. The coming weeks will be crucial to see how the situation develops and whether a compromise can be found that meets both the needs of the workers and Boeing's operational requirements.
In summary, the Boeing strike could have far-reaching consequences for the entire aviation industry. The delays in aircraft production and the uncertainty about the future availability of new models are challenges facing airlines such as Ryanair as well as Boeing and other market participants.
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