On First Move, CNN’s Julia Chatterley interviewed the President of Emirates Tim Clark. Clark spoke about the Boeing 737 Max crisis and the uncertainty around Brexit.
Following two fatal crashes, Boeing was forced to ground its 737 Max planes in March 2019. This affected airlines across the world, including Emirates. Clark believes it has disrupted Boeing and compelled the company to re-evaluate itself, “This will be a real disruptor to Boeing, it is. I think they will re-examine themselves, that’s what they should be doing, turning themselves inside out.”
As well as affecting current flights, the grounding had an impact on orders for new 737 Max planes. Clark expresses doubt that Boeing’s competitor Airbus will be able to fulfil any extra orders, “For Airbus to crank up manufacturing plants to produce the Max cancellations is probably not going to be feasible.”
Boeing is hoping to have the 737 Max airborne again by the end of the year. However, Clark tells Chatterley that he feels this date will not be reached, “I would say sometime in the first quarter of next year, calendar – January, February, March, latest April.”
Clark goes on to describe Boeing as, “a company which is haemorrhaging cash”, but believes that “They will get it right” when it comes to solving the 737 Max crisis.
Emirates also has orders for the new Boeing 777X which was due to be delivered by next June. Again, Clark is doubtful that Boeing will reach this date, “I would say that’s a little bit optimistic. Q3 of 2020 I would say… my money’s on Q1 (2021).”
Clark also spoke about Brexit and the uncertainty it is causing. He said that the Brexit process has been, “Pretty ugly”, and that deliberation cannot be allowed to go on for much longer, “This cannot go on indefinitely. And if it is allowed to go on indefinitely, the destabilisation of both the European economies and the UK will be out there for so long. It’s not a good place to be in.”