Asian Airlines Struggle with Backlogged Orders Amid Ongoing Boeing Strike

981 Units to be Delivered by 2030... Uncertain Due to Strike
Bloomberg "Freight Rates May Increase"

Asian airlines are growing increasingly anxious due to the Boeing Seattle factory strike. Aircraft deliveries are further delayed amid an already backlog of orders caused by the strike.

On the 25th (local time), Bloomberg cited Cirium data, reporting that Boeing plans to deliver 981 aircraft to Asian airlines by 2030. This accounts for one-third of the global aircraft delivery volume.

[Image source=AP Yonhap News]

By airline, India's Air India leads with 141 aircraft, followed by Indonesia's Lion Air with 135, and India's Akasa Air with 131. Among Korean airlines, Jeju Air has 38 aircraft, and Korean Air has 21.

However, aircraft production has halted since Boeing factory workers began striking on the 13th, the first strike in 16 years, making delivery schedules uncertain.

With the aircraft manufacturing supply chain still recovering from the COVID-19 pandemic, the Boeing union strike adds insult to injury for the aviation industry. According to aviation consultancy IBA, the combination of this strike, supply chain disruptions, and economic issues is expected to delay aircraft deliveries worldwide in 2024. It is predicted that delivery volumes will only return to the pre-pandemic peak levels of 2018 by 2026.

Boeing initially aimed to produce 38 units of the 737 Max per month by the end of the year, but stated that the strike will require more time for production. Michael O'Leary, CEO of Ryanair, said on the 16th that up to 10 aircraft deliveries are expected in the first half of next year, but the strike's impact could push deliveries into the second half.

Korean Air, VietJet, and Japan Airlines told Bloomberg they are concerned about delivery delays due to the strike. Singapore Airlines and others said they are negotiating delivery schedules with Boeing amid the strike.

Bloomberg stated, "The capacity of Asian airlines, which are the growth drivers of global air travel, is at risk," adding, "If there are not enough seats, fares generally increase."

This content was produced with the assistance of AI translation services.