0
0
Ryanair Group Chief Executive Officer Michael O’Leary warned that a prolonged Boeing workers’ strike could negatively impact the expected aircraft delivery schedule, reports Aero Time.
O’Leary said Boeing’s largest strike could reduce the number of planes Ryanair receives next summer. While the Irish ultra-low-cost carrier is set to receive 25 aircraft by summer 2025, O’Leary warned that if the strike continues for three to four weeks, Ryanair may only receive 20 planes.
However, the CEO also expressed confidence during an interview with Newstalk Radio, stating that he has “no doubt” Boeing will resolve the issue.
Ryanair, one of Boeing’s primary customers, was initially scheduled to receive 30 Boeing 737 MAX planes by summer 2025. However, due to ongoing manufacturing challenges, this number has been scaled back to 25 aircraft. The recent labour strike at Boeing could further disrupt Ryanair’s aircraft deliveries.
Boeing Workers On Strike
Boeing faces a significant strike after around 30,000 workers, represented by the International Association of Machinists and Aerospace Workers (IAM), rejected a proposed contract in mid-September 2024. Based in Seattle and Portland, the workers began their strike on September 12 after voting overwhelmingly against the contract. The offer included a 25% wage increase over four years, but workers argued it wasn’t enough to compensate for longstanding grievances, with many demanding up to a 40% increase.
The strike has halted production at Boeing’s factories, directly affecting the manufacturing of its bestselling planes, like the 737 MAX. It was the first for Boeing workers since 2008. This strike comes at a challenging time for Boeing, which has been dealing with operational difficulties and trying to recover from past issues, including safety concerns with some of its aircraft models. The strike could further disrupt its recovery, with significant financial and operational consequences, potentially costing the company millions in delayed production and deliveries.
Anticipating a resolution, negotiations are expected to continue to avoid prolonged disruption. According to Al Jazeera, Jon Holden, IAM’s lead negotiator in the contract talks, said workers had spoken “loud and clear”.
“This is about respect, this is about addressing the past, and this is about fighting for our future,” Holden said.
Worker Strike Affected Boeing’s Recovery Plan
The strike also comes just weeks after new Boeing CEO Kelly Ortberg took over, promising to reset the company’s relations with the union.
Due to the ongoing strike, on Monday, the company released a cutback plan. In a memo to employees, Chief Financial Officer Brian West detailed 10 immediate cutbacks. These include a freeze on hiring across all levels, pausing pay increases for managers and executives who get promoted, stopping all non-critical travel, and reducing spending on suppliers.
The company is also considering temporary furlough for many employees, managers and executives in the coming weeks. The company said the move was necessary because “our business is in a difficult period.”
