Emirates president advocates Boeing-Spirit merger to tackle quality crisis

Amid Boeing's ongoing industrial and quality crisis, Emirates, one of its prominent clients, has thrown its weight behind a potential merger between Boeing and Spirit AeroSystems. The move, endorsed by Emirates Airline President Tim Clark, signifies a key step towards addressing Boeing's manufacturing challenges head-on.

Following the recent factory audits conducted by US regulators at Boeing and its supplier Spirit, concerns have escalated. The discovery of missing bolts on a 737 MAX 9 airliner in January underscored the urgency for quality reforms within Boeing's operations.

Speaking to reporters, Clark stressed on the critical need for Boeing's board and top management to prioritise resolving the quality issues promptly. He warned that failure to do so could raise doubts about Boeing's future viability.

Boeing's announcement of discussions to acquire its former subsidiary, Spirit AeroSystems, reflects a strategic move to regain control over crucial manufacturing processes. Additionally, industry sources revealed exploratory talks between Spirit and Airbus regarding potential collaboration on certain operations.

Spirit AeroSystems, responsible for a significant portion of Boeing's aircraft production, particularly the 737 MAX, remains integral to Boeing's supply chain. Clark questioned the decision to spin off Spirit from Boeing in 2005, highlighting potential operational challenges stemming from the move.

While acknowledging Boeing's efforts to address the crisis, Clark stressed the necessity for undivided attention from the company's leadership and board members. He warned that failure to prioritise quality reforms could jeopardise Boeing's existence.

Despite the challenges, Clark expressed confidence in Boeing CEO Dave Calhoun's leadership but reinforced the need for robust governance and decisive action.

In a separate development, Clark indicated progress in resolving a dispute with Rolls-Royce over engine durability for the Airbus A350-1000. However, he reiterated Emirates' stance on delaying orders until Rolls-Royce demonstrates maintenance improvements.

Looking ahead, Clark highlighted strong demand in the airline industry, predicting sustained fare levels and increased air cargo activity. However, he cautioned against complacency, emphasizing the need for vigilance amidst evolving global challenges.

(With Reuters inputs)