The ongoing strike at Boeing Co has had only a minor impact on China Airlines Ltd (CAL, 中華航空), although the delivery of a new cargo jet might be postponed, CAL chairman Hsieh Su-chien (謝世謙) said on Saturday.
The 24 Boeing 787-9 passenger aircraft on order would be delivered on schedule from next year to 2028, while one 777F freight aircraft would be delayed, Hsieh told reporters at a company event.
Boeing, which announced a decision on Friday to cut 17,000 jobs — about one-tenth of its workforce — is facing a strike by 33,000 US west coast workers that has halted production of its 737 MAX, 767 and 777 jets.
Photo courtesy of China Airlines Ltd
The downsizing is necessary “to align with our financial reality,” Boeing chief executive officer Kelly Ortberg said in a message to employees on Friday, as the company also struggles with growing concerns over the quality of its aircraft.
The aviation giant announced a series of belt-tightening measures and production delays as the one-month-long strike of 33,000 workers has added to the company’s litany of problems.
Boeing staff with the International Association of Machinists (IAM) and Aerospace Workers walked off the job on Sept. 13 after overwhelmingly rejecting a contract offer.
The company said the IAM strike contributed to US$3 billion in pre-tax charges to its commercial aviation results in the third quarter, part of an anticipated loss of US$9.97 per share.
Ratings agency S&P estimated last week that the strike was costing Boeing US$1 billion per month.
However, Hsieh said that Boeing has confirmed that the 787-9 production line is unaffected, as its North Charleston, South Carolina facility has no union presence.
CAL has introduced six 777F freighters since December 2020, followed by the purchase of four more in January 2022.
Nine of the aircraft have been delivered so far, but the 10th, originally scheduled for delivery in August this year, has been delayed, with the new timeline yet to be determined, Hsieh said.
CAL’s revenue rose 7.4 percent year-on-year to NT$16.01 billion (US$497.5 million) last month, as its passenger revenue grew 2.41 percent to NT$9.45 billion and cargo revenue also increased 13.42 percent to NT$5.27 billion, the company reported on Friday.
In the third quarter, revenue rose 9.3 percent from a year earlier to NT$52.1 billion, the highest for the July-to-September quarter in the company’s history, it said.
Cumulative revenue in the first three quarters of the year was NT$150.98 billion, up 9.76 percent annually and the highest for the period, company data showed.
Additional reporting by AFP
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