AerCap CEO said about production problems of aircraft
2023.01.16 11:43
Budrigannews.com – Monday, the world’s largest aircraft leasing company, AerCap, issued a warning regarding delivery issues at Boeing (NYSE:) and Airbus were likely to last for years, and airlines were receiving insufficient advance notice of delays from manufacturers.
Aengus Kelly, chief executive of AerCap, stated at the annual Airline Economics conference in Dublin that manufacturers are likely to struggle with over-promising and under-delivery “for years to come.”
Kelly stated, “The short-dated nature of how they’re notifying airlines of the delays is the challenge with the OEMs (original equipment manufacturers) today.”
“If you’re an airline planning for the summer of 2023, you’ve sold the seats, hired the crew, booked the slots, and if the plane doesn’t show up, you’re in serious trouble.”
He stated that rather than taking a chance on new models, some airlines are purchasing aircraft that are 20 years old.
Kelly, one of Airbus’ largest customers, stated, “I think candidly that we have seen Airbus sell too much on massive optimism about what they could deliver.”
“What Airbus thought they would deliver in 2022 has undergone multiple revisions,” I believe that OEMs will continue to use that feature for many years to come.”
Air Lease, a rival leasing company (NYSE:) Earlier on Monday, Corp issued a similar warning, stating that manufacturers would struggle to meet their delivery commitments in 2023 due to overpromising to airlines last year.
Kelly stated that he anticipates global air traffic returning to pre-pandemic levels by the middle of this year on the demand side.
He stated, “While it’s true that there is less disposable income in the wallet, we as the travel industry and the aviation industry are not competing against as many things for our share of the wallet.”
“As many Xboxes have been purchased, Peloton (NASDAQ:) Nike (NYSE:) bikes, flat-screen televisions shoes as needed.”
