
In a candid and critical address, Steven Udvar-Házy, the influential executive chairman of Air Lease Corporation (ALC), one of the world's largest aircraft leasing companies, has delivered what many are calling "tough messages" to both Airbus and Boeing. His remarks, made during a recent industry conference, underscore the ongoing challenges and frustrations faced by the aviation sector, particularly with regard to aircraft delivery delays and production issues. Udvar-Házy's critique comes at a time when the global aviation industry is still navigating the aftermath of supply chain disruptions and production bottlenecks that have significantly delayed aircraft deliveries. He pointed out that both Airbus and Boeing have been struggling to meet their delivery schedules, a situation that has not improved and is likely to worsen before it gets better. According to Udvar-Házy, Air Lease was supposed to receive 92 new aircraft in 2024 but ended up with only 71 or 72, highlighting the severity of the delivery issues.
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His comments delve into the specifics, noting that Airbus's A321neo deliveries are running six to seven months late, while Boeing's 737 and 787 models also face significant delays. This isn't just a one-off problem but a systemic issue affecting the entire industry's recovery from the downturn caused by the global health crisis. Udvar-Házy's frustration is palpable when he mentions that every plane last year and this year has been delayed, with no immediate relief in sight as both manufacturers continue to struggle with supply chain constraints. The executive chairman also touched on the broader implications of these delays, particularly for airlines that have planned their fleet expansion or replacement based on these promised deliveries. Airlines like Southwest, which had hoped to recover its schedule depth with new aircraft from Boeing, have had to adjust their strategies, pushing back recovery plans due to these delays. Similarly, Lufthansa has had to reconsider its fleet strategy, bringing back retired Airbus A380s to meet demand amid the delay in new widebody deliveries from both Airbus and Boeing.
Udvar-Házy's critique extends beyond just delivery timelines. He expressed skepticism about Boeing's future product development, particularly criticizing the company's decision not to develop a new "green-sheet" aircraft until the 2030s. He questioned the rationale behind such a decision, suggesting that without significant technological advancements, any new aircraft would merely be an incremental improvement over existing models, not justifying the investment. On the Airbus side, Udvar-Házy criticized past decisions like the development of the A380, which he described as a financial flop for Airbus except for a few airlines like Emirates. He also cast doubts on Airbus's ambitious production goals, suggesting they are not realistic in the current industry climate.
His assessment of the market's future was equally sobering, indicating that the current duopoly of Airbus and Boeing might not last another two decades. He predicts that changes in the market structure are inevitable, though whether this will lead to three or four major players remains to be seen. Udvar-Házy's harsh words serve as a wake-up call to both manufacturers, highlighting the need for not just improved production and delivery capabilities but also strategic foresight in aircraft development to meet future market demands. His influence in the industry, shaped by decades of experience and innovation in aircraft leasing, gives weight to his critiques, making them hard for Airbus and Boeing to ignore as they navigate their path forward in a still-recovering aviation market.