The aviation group recently suffered from problems in the armaments division.
(Photo: AP)
new York Problems in the armaments division are causing problems for the US aviation company Boeing. Analysts had finally expected a profit for the world’s second-largest aircraft manufacturer in the third quarter. Instead, the bottom line for the Airbus competitor was a loss of 3.3 billion dollars.
“Our sales and profits were significantly impacted by losses in defense fixed-price development projects, driven by higher production and purchase prices,” said Boeing CEO Davel Calhoun Costs cannot simply be passed on to customers.
>> Read also: Boeing expects the global aircraft fleet to double by 2041
Despite the upturn in the aviation industry, Boeing missed the hoped-for turnaround. In recent years, the US group has suffered from the long flight ban for the 737 Max aircraft and the slump in air traffic during the pandemic. Quality problems in production also weighed on the result.
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The US supervisory authorities have delayed the delivery of the 787 Dreamliner for 18 months, and the approval was only granted in August. Most recently, Boeing was able to benefit from the upturn in passenger aircraft business: In the third quarter, the company delivered 112 short-haul aircraft. In the same period last year there were only 85. Boeing also expects long-term stabilization.
The development is thwarted by the armaments division, which is actually experiencing increased buyer interest around the Ukraine war. But there, technical problems and increased costs for the tanker aircraft for the presidential plane Air Force One, for a stealth drone and for a high-speed aircraft have depressed the result.
Boeing hopes for Germany’s rearmament
In the medium term, Boeing remains optimistic about the defense division, which accounted for a third of sales at $5.3 billion. The Airbus competitor is also hoping for further orders from the Bundeswehr after the planned upgrade.
“We have many products that we would like to offer Germany,” said the head of Boeing’s military division, Ted Colbert, recently on the fringes of an appearance in New York when asked by the Handelsblatt. Boeing has already benefited from the 100 billion euro new armaments program for the German armed forces – but can deliver more.
“Thank you to the German government and military for the Chinook order,” said Colbert, referring to the €4 billion order for the delivery of 60 Chinook helicopters, which was announced in early June.
Without specifically mentioning the attacks on the North Stream 1 and 2 Baltic Sea pipelines, he said: If you think about security in Europe and take a look at the recent events, then it is clear “how important maritime resources and maritime surveillance” are . When it comes to armaments, the NATO and G7 countries would have to work even more closely together. “Then we can make a difference and take a step forward.”
Colbert brought up another specific possible armaments project that Boeing would like to be involved in: the pending replacement of the Air Force’s AWACS reconnaissance aircraft. In this area, Boeing has its “E-7 Wedgetail” machines on offer, which the US Air Force ordered back in April. “Replacing the Awacs with E-7s is another example of an important military capability that can make a difference in future combat,” Colbert said.
In addition, there are other armaments projects, such as training aircraft. “We are working closely with the German government here to support their mission and increased investment [in die Bundeswehr] to use.”
More: Good for Lufthansa – US air traffic control allows delivery of the Boeing Dreamliner.