Two aviation-industry billionaires had tough messages for Boeing workers at a reception before an airplane delivery at Boeing Field in Seattle Friday morning.
Steven Udvar-Hazy, chief executive of Boeing’s largest customer, predicted that both Boeing and Airbus will sharply reduce their output in the coming months.
Udvar-Hazy said jet production could drop by a third in the next 18 months. That would inevitably mean layoffs of blue-collar workers locally.
And Richard Branson, chairman of the Virgin Blue group of airlines, in town to accept a new 777 from Boeing that was originally due before Christmas, described the delivery delay caused by the Machinists strike as “catastrophic.”
Branson said that if there’s a risk of further strikes in the future, he may not buy Boeing again.
Udvar-Hazy, chairman and CEO of International Lease Finance Corp. (ILFC), makes huge deals with both the big jet manufacturers and the airlines. ILFC owns the world’s largest wide-body fleet and has 74 Boeing 787 Dreamliners on order. He’s in a unique position to assess the true state of the aviation business.
His remarks were much more pessimistic than recent cautious statements from Boeing executives, who have declared production is completely solid at least through the end of this year.
Udvar-Hazy doesn’t think so.
“By the fourth quarter, we could definitely see some adjustments,” he said. “I’d like to see it sooner.
“It would not be surprising to us if there were 30 to 35 percent cuts over the next 18 months,” he added.
He predicted the two major producers will deliver fewer airplanes next year than in 2009.
Udvar-Hazy also forecast a massive decline in orders this year.
http://seattletimes.nwsource.com/html/boeingaerospace/2008717282_hazy07.html
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