Boeing’s Progress in Production Stability Encourages Avolon CEO
DUBLIN (Reuters) – The CEO of leading aircraft leasing company Avolon expressed optimism regarding Boeing’s efforts to stabilize its production following disruptions caused by a seven-week strike last year.
Boeing recently announced the delivery of 45 aircraft in January, marking its highest monthly output since 2023.
“The transparency and consistency in Boeing’s production ramp-up are impressive. We are seeing significant progress in their manufacturing process,” said Avolon CEO Andy Cronin during an interview on Thursday. His comments followed a visit to Boeing’s production facilities in Seattle last month.
As the second-largest aircraft leasing company globally, Avolon plays a critical role in aviation, with leasing companies collectively accounting for nearly half of all Boeing and Airbus aircraft orders.
Cronin emphasized that achieving production stability is a key milestone for Boeing. “Establishing a stable production environment is the foundation for further growth, and Boeing has been making substantial strides in that direction,” he noted.
However, he also highlighted challenges in the industry, pointing out that Airbus’s high output in the fourth quarter had put considerable strain on the supply chain.
“The rapid increase in aircraft production has stressed the supply chain, and these challenges persist,” Cronin explained.
His remarks came alongside Avolon’s financial results for 2024, which reported an adjusted net income of $458 million. The company also recorded an additional $150 million in after-tax income from insurance settlements related to aircraft stranded in Russia.
(Reporting by Conor Humphries; Editing by Catarina Demony)
