With the future of the largest U.S. aerospace manufacturer and exporter on the line, Boeing CEO Dave Calhoun now faces the challenge of rebuilding his company’s sales in its core airliner business. Boeing is still suffering the detrimental impact of the coronavirus pandemic on air travel, as well as the safety scandal that rocked the company due to the crash of its 737 MAX airliner.
Boeing, which competes with rival Airbus in a global duopoly in the single-aisle jetliner market, has experienced a stark decline in market share since the 737 MAX’s lengthy grounding, from roughly 50% a decade ago to 35% in the current market.
Airbus’s single-aisle A321neo has enjoyed roaring market success, while Boeing’s MAX airlines have done little to stop this airliner in its tracks. Industry analysts warn that without the introduction of a worthy competitor to the A321neo, Boeing is in danger of allowing Europe to clinch a large portion of the market currently held by America. Planemakers value this market at approximately $3.5 trillion over the next 20 years.
Despite the current challenge facing the aerospace giant, Calhoun remains confident of Boeing’s ability to bounce back: “I’m confident that over a longer period of time, we’ll get back to where we need to get to and I’m confident in the product line.”
