New Boeing aircraft development hampered by backlog of existing orders, says CEO - Fox Business

What the report says

Fox Business reported that Boeing CEO Kelly Ortberg said the company has begun preliminary work on a possible new commercial airplane, but is not ready to formally launch a program. Speaking ahead of the Farnborough International Airshow near London, Ortberg said Boeing is spending resources to study design options and compare potential configurations, while emphasizing that no final design has been selected.

According to the report, Ortberg said Boeing must first strengthen its finances, advance needed technology and catch up on aircraft deliveries that are already running late. He said improving the company’s financial position will take “another couple years,” and described deliveries, rather than demand, as Boeing’s main constraint. The company is currently focused on delayed programs including the 777X wide-body aircraft.

Fox Business, citing The Wall Street Journal, reported that Boeing did not bring the 777X to Farnborough for demonstration flights while it awaits Federal Aviation Administration certification. The report also said the FAA could approve the 737 MAX 7 as soon as late July, with the larger MAX 10 expected to follow not long afterward, according to Ortberg.

The comments matter because Boeing is weighing its next major aircraft investment while managing a large order book and competing with Airbus in the commercial jet market. Fox Business also noted that airline customers want Boeing to improve production performance and reliability in its existing lineup before moving ahead with an all-new jet. Boeing could not immediately be reached by Fox Business for comment.