Emirates President Warns Of Boeing's 'Quality Control Problems' After Recent 737 Max 9 Incident: 'This Doesn't Help'

What Happened: Clark expressed his apprehension over Boeing’s operational improvements in light of the Jan. 5 incident. During an interview with Bloomberg in Dubai on Monday, Clark noted that the issues at Boeing have been persistent and that the recent incident is an illustration of that.

"They've had quality control problems for a long time now, and this is just another manifestation of that,” he said.

"I think they're getting their act together now, but this doesn't help,” Clark added.

He also acknowledged that given the current duopoly in the civil aviation industry, airlines have limited alternatives.

Clark, who is known for holding both manufacturers and engine suppliers accountable for any perceived engineering shortcomings, mentioned that other aircraft producers have a long way to go to compete with the industry’s main players.

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The Emirates president’s criticisms extended to engine manufacturer Rolls-Royce Holdings Plc, as he previously called their engines for Airbus’s A350-1000 “defective.” In contrast, Emirates endorsed Boeing with a substantial order for their wide-body aircraft at the recent Dubai Air Show.

Following these comments, Boeing saw an 8.3% drop in shares, marking the biggest intraday decline since October 2022.

Why It Matters: This warning from Clark comes amidst a series of incidents involving the Boeing 737 Max 9, which may pose a significant challenge to the company’s revival plans.

Recently, United Airlines uncovered numerous loose bolts on its grounded 737 Max 9 aircraft, exacerbating the ongoing crisis faced by Boeing. Following this incident, U.S. regulators grounded 171 planes of this model, including the entire U.S. fleet, raising questions about the stability of Boeing’s CEO, Dave Calhoun, and the company’s relationship with its primary supplier, Spirit AeroSystems Holdings Inc SAVE.

These incidents have also prompted concerns about the stability of Boeing’s largest revenue source, the 737 Max, which was previously grounded after two fatal accidents five years ago. Boeing has since grappled with manufacturing defects involving its main supplier, Spirit AeroSystems Holdings Inc.

Despite these issues, Clark expressed faith in Boeing’s ability to resolve them, provided management and the board of directors address the problems.

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Emirates Image Via Shutterstock