The Air Show The Scott Kirby interview
8 snips
Jun 4, 2024 United CEO Scott Kirby discusses Boeing, United's competitors, and US-based ULCCs. Topics include challenges to airplane manufacturers, route profitability, airline failures, and strategic innovations in the industry.
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Delivery Delays Created A Hidden Lifeline
- Delivery delays at Boeing/Airbus have unintentionally helped loss-making airlines by compensating them for aircraft they can't operate.
- Scott Kirby says delays have bailed out airlines that bought more planes than profitable routes warranted.
Unprofitable Routes Eventually Correct
- Routes that structurally lose money cannot persist forever; carriers will cut or slow growth until economics improve.
- Kirby warns many non-top-two U.S. airlines have significant unprofitable network segments.
Define The Aerospace Competition Problem First
- Admit the aerospace competition problem before trying to fix it and define the solution clearly.
- Kirby says United has started thinking about ways to create more supplier competition but has no firm answers yet.