Boeing’s Bumpy Road: Why a New Plane Has to Wait

What’s Happening with Boeing?

Boeing is a big company that builds airplanes. Its CEO, Kelly Ortberg, talked to CNBC on Monday and said something simple but important: Boeing needs “a couple more years” to fix its money problems before it can build a brand-new commercial jet (a plane for regular travelers).

This means Boeing is not in a rush to make a replacement for its popular 737 MAX airplane. Instead, it wants to steady the business it already has.

Three Hurdles Before a New Airplane

At the Farnborough International Airshow in the U.K., Ortberg told CNBC’s Phil LeBeau that Boeing must jump over three hurdles before saying “yes” to a new aircraft program:

1. Get its financial house in order – Fix the money side of the company. Ortberg said: “We have to be ready, and part of that is getting our financial house in order. It’s going to take a couple more years to get where we want to be.”
2. Have the technology ready – The science and engineering must be good to go.
3. See enough market demand – Customers (airlines) must actually want to buy it.

Important Point: Ortberg came out of retirement to help Boeing after a rough time. The company had manufacturing and quality troubles, and in January 2024 a fuselage door plug (a panel that covers where a door could be) blew out mid-flight. That was nearly catastrophic (very dangerous).

What Do Airline Customers Want?

Right now, airlines are telling Boeing: “Please make your current planes more reliable and build them faster.” They are not asking for a new jet.

Because of this, Ortberg suggests Boeing will probably not launch a new narrowbody aircraft (a smaller plane with one aisle, like the 737) until later in the decade (the 2030s).

The Big Picture: Boeing vs. Airbus

The large commercial airplane market is mostly a two-horse race between:

• Boeing (from the U.S.)
• Airbus (from Europe, ticker AIR-FR)

To win future business, Boeing will likely need a new plane to better compete with Airbus’s A320 family (a popular narrowbody jet).

What Is Airbus Doing?

On the same Monday, Airbus CEO Guillaume Faury told CNBC:

• Airbus is aiming for a next-generation single-aisle jet around 2030.
• That plane would start flying for customers in the second half of that decade.
• Airbus wants to stay the leader in the single-aisle market.
• It is also focused on building more of its current planes.

Both Boeing and Airbus have had supply crunches (not enough parts or materials) after the Covid-19 pandemic, so they struggle to meet customer demand.

This year, investors (people who own stock) have felt more negative about Airbus because Boeing, under Ortberg, is making progress after its long crisis. Both companies will share their second-quarter earnings (money report) later this month.

Air Force One Update

What Is the VC-25B?

The next generation of Air Force One is the special plane used by the U.S. President. Its program name is VC-25B.

Ortberg said Boeing will:

• Spend more money on it
• Add engineering and production staff (more smart builders)
• Run multiple shifts (work in teams around the clock)

The goal is to deliver it in 2028. This high-profile project was delayed many times and was first supposed to be delivered in 2024.

Summary

Boeing is fixing its finances and current planes before building a new commercial jet. CEO Ortberg says it will take a couple more years and three clear hurdles must be met. Airlines want better current planes, not new ones yet. Airbus is planning a new jet around 2030. Both face part shortages after Covid. Boeing is also adding staff and shifts to deliver the new Air Force One in 2028.

FAQ

Q1: What does “getting our financial house in order” mean?
A: It means fixing the company’s money problems—like debt, costs, and steady income—so Boeing is healthy before starting risky new projects.

Q2: Why did Boeing’s door plug blow out?
A: The article says Boeing had manufacturing and quality issues, and in January 2024 a fuselage door plug (a covered panel) came off during flight. The exact cause isn’t detailed here, but it was part of a wider quality crisis.

Q3: What is a narrowbody aircraft?
A: It is a plane with a single aisle (one walking path down the middle), usually smaller and used for shorter trips. The 737 MAX is one example.

Q4: Why is Air Force One important for Boeing?
A: It is a famous, high-profile project for the U.S. President. Delays look bad, so Boeing is adding people and shifts to deliver the new version (VC-25B) by 2028.