The largest strike in Boeing’s history, involving around 33,000 workers, could have far-reaching consequences for aircraft deliveries and the production of new models by the US aircraft manufacturer.
Ryanair Group CEO Michael O’Leary recently expressed concerns that a prolonged industrial dispute could affect the planned delivery 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 recently led to one of the most serious work stoppages in 16 years.
Michael O’Leary, who heads one of Boeing’s largest customers, has expressed his organisation’s 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 30 Boeing 737 MAX aircraft by the summer of 2025. 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 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 union-organized factory, is also at risk. The Boeing 797 is intended to be 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 made it clear that the problems with the unions can be resolved. Michael O’Leary says he has no doubt that Boeing will resolve the matter, even if it may take a few weeks. He stresses that the company has a strong incentive to end the strike quickly in order to meet production plans and delivery deadlines again.
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 may also drive up leasing and purchasing prices.
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 that airlines such as Ryanair are facing, as are Boeing and other market participants.
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