Boeing Q3 results: "results are very strong in terms of the currency of confidence"

CGTN Europe

CGTN Europe interviewed Anita Mendiratta, Special Advisor to Secretary General of U.N. Tourism in Aviation and Tourism Development

Transcript

00:00Anita Mandarata is Special Advisor to the Secretary-General of UN Tourism in Aviation.

00:06Thank you so much for being with us today.

00:08So, overall, what are your thoughts about these mixed results for Boeing?

00:12Revenues up, but overall, a net loss.

00:16Indeed. I think importantly, and thank you very much for having me on the conversation for this analysis,

00:21because what's very important is if we rewind a year ago to when Kelly Ortberg had just come into office,

00:27it's been a very turbulent 12 months, but the results that have been reported today are very, very strong in terms of the currency of confidence.

00:35So, revenues have gone up. Yes, there was the exceptional charge when it came to the 777X,

00:40but when we look at the confidence that's coming back from the regulators,

00:44with the FAA giving the go-ahead to be able to increase production of the 737, that's very important.

00:50When we look at the currency that's going up in terms of confidence of the traveling public, of investors,

00:57and very much importantly of staff, having gone through again a major strike last year,

01:02this is showing enormous momentum of the leadership of Kelly Ortberg,

01:06and how much trust there is in his being able to focus on the fundamentals,

01:11keep everyone aligned in terms of what is ultimately the delivery agent for the airline manufacturer,

01:16which is quality and safety, to be able to deliver to customers,

01:20because only through deliveries do we get the cash flow we need.

01:24And of course, it would be an understatement to say that Boeing has faced unprecedented reputational challenges in recent years,

01:30a highly turbulent 12 months, as you put it,

01:33but it does sound like that the direction is starting to change under its new leadership.

01:37I mean, how long will it really take to turn things around?

01:41Indeed, it's a very good point, because ultimately the CEO is on a runway to recovery.

01:45It's not an immediate takeoff.

01:47And what's important about that, again, is, again,

01:49continuing with the momentum of trustworthy delivery to the regulators, to the investors, to the staff, and to the flying public.

01:57Because if we look at the backlog that both Airbus and Boeing currently have,

02:02both of them have enormous pressure on deliveries.

02:05But the fact that Boeing was able to get the approval from AFAA to increase production of its critical 737 MAX,

02:12which is not only critical in terms of orders, it's a vital aircraft when it comes to sustainable aviation,

02:19because of its lower emissions, because of it being lighter and quieter.

02:23So it's also the innovation that Boeing is able to put back onto the runway

02:28to be able to allow the manufacturer to recover itself again.

02:32And this has not been an easy 12 months for the new CEO, but he has been visible.

02:37He has been absolutely present to the accountability of the investors, of the regulators, of the staff, and of customers.

02:45And now the rallying of support is going to be needed to continue, even though we do have the bad news of the 777X,

02:52which we understand is a very logical delay, because especially of the quality reassurance that needs to go into it.

02:59Yes, I was going to ask you about how serious it was, this 777X delay, what the reason was for that.

03:06There is very much a delay in terms of the approvals and the certifications,

03:11because there have been some issues in terms of the actual production, the ability to bring in quality production.

03:16Part of that is actually linked to the engines, so it's not only Boeing itself,

03:21so it's also the GE engines that are coming onto it.

03:24Because as we know, any aircraft manufacturing is a long life cycle to be able to ensure that it is absolutely sound

03:31in terms of quality, safety, and sustainable aviation engineering.

03:36And this is why this aircraft being pushed off, it's certainly not good news,

03:41but it fits within the wider portfolio of Boeing, like any aircraft does within the greater manufacturer's portfolio.

03:48So now that we have, again, 737 MAX increasing in its production, we have the 787 also coming back on stream.

03:56That's a very good thing to allow the 777 to then catch up where it needs to,

04:01to allow Boeing to continue to compete in a way that's profitable for the manufacturer.

04:06Really grateful for your input today.

04:08Thank you so much for joining us, Anita Menderata,

04:11Special Advisor to the Secretary General of UN Tourism and Aviation.

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