Major aircraft lessor Avolon says Boeing has ‘lost its way’ By Reuters

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© Reuters. A Boeing logo is seen at the company’s facility in Everett after it was announced that their 777X model will make its first test flight later in the week in Everett, Washington, U.S. January 21, 2020. REUTERS/Lindsey Wasson

DUBLIN (Reuters) -The head of the world’s second-largest aircraft leasing company said on Thursday Boeing (NYSE:) had “lost its way” and might need new leadership to fix a company culture that had become “totally warped”.

The comments by Avolon Chief Executive Domhnal Slattery represented a rare public rebuke of Boeing by a significant customer, albeit one that canceled orders for over 100 737 MAX jets during the COVID pandemic.

Boeing did not immediately respond to an emailed request for comment.

“I think it’s fair to say that Boeing has lost its way,” Slattery told the Airfinance Journal conference in Dublin, a gathering of the world’s aircraft lessors who together own most of the world’s passenger jets.

“Boeing has to fundamentally reimagine its strategic relevance in the marketplace,” he said, adding that this would require “fresh vision, maybe fresh leadership.”

Shares of Boeing fell to a nearly 1-1/2 year low last week after the U.S. planemaker posted a quarterly loss, unveiled $2.7 billion in charges and added costs and expressed doubts over hitting 737 MAX delivery targets.

Boeing also announced it was halting 777X production through 2023 and failed to specify when it would resume deliveries of its key twin-aisle 787 Dreamliner model.

“They are burning cash at an unprecedented level. They’re probably going to get downgraded,” Slattery said.

Slattery said Boeing’s culture had become “totally warped” but that the issues could eventually be resolved.

“I have faith that they will figure it out,” Slattery said.

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