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United exec says COVID-19 pandemic may have contributed to Boeing’s problems with lost personnel

A United Airlines executive suggested that Boeing’s latest set of problems are due to the loss of experienced talent due to the coronavirus pandemic.

According to Reuters, United Airlines Vice President of Finance Gary Lederman made the remarks at the Aviation Economics Conference in Dublin.

“Experience is key, and we need an experienced team to right the ship,” Lederman said.

“Part of the problem for many industrial companies is that no one realized the challenges we would all face as we emerge from COVID-19,” he continued.

“It’s mainly the supply chain, but also the lack of senior talent and a lot of departures, so the knowledge base. It affects everyone, and I think that’s part of what happened at Boeing, but also It takes time.”

According to Reuters, Lederman said he would not comment on whether a change in management at the aircraft maker was needed.

Boeing’s 737 Max 9 jetliner in the company’s hangar. AP

Boeing Co. has been in trouble since a door plug on a 737 MAX 9 plane operated by Alaska Airlines flew off during a flight earlier this month, prompting the Federal Aviation Administration to suspend all flights pending a safety investigation. The company has grounded its 737 MAX 9 aircraft.

The apparent cause of the accident was that the bolts that hold the door plugs in place may have been missing when the plane left the Boeing factory, The Wall Street Journal reported.

Since the incident, lawmakers have been pressuring Boeing to withdraw a key safety exemption application that would allow regulators to speed up certification of the next 737 MAX 7 jet. Boeing said Monday it intends to do so.

This week’s Airline Economics Conference is focused on how key airline executives, many of whom are Boeing customers, are responding to Boeing’s problems.

Since the incident, lawmakers have been pressuring Boeing to withdraw a key safety waiver application for its next jet. Nicholas Economou/NurPhoto/Shutterstock

Conference attendees said Boeing’s decision raised questions about the timing of the larger, more widely sold MAX 10, which was scheduled to be certified a year after the MAX 7.

United Airlines, the leading MAX 9 carrier, has ordered 277 of the larger MAX 10 planes, and Boeing is expected to seek a waiver as well.

Amid the dispute with Boeing, CEO Scott Kirby visited rival Airbus to discuss purchasing more A321neos, Reuters reported.

A United Airlines executive said job losses due to the pandemic may have contributed to Boeing’s problems. AFP (via Getty Images)

Lederman told Reuters he plans to step down after he retires as chief financial officer and will no longer record Kirby’s travels. He noted that Airbus also has delivery issues, with strong demand for the A321neo but low supply.

“Yes, there are problems with Boeing. But keep in mind that Airbus also has problems, mainly related to the supply chain, for completely different reasons.”

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