What differentiates Airbus from Boeing was what happened during Covid: AerCap CEO Aengus Kelly

CNBC’s Phil LeBeau and AerCap CEO Aengus Kelly join 'Squawk Box' to discuss the company's capital markets day, the production issues facing Boeing, how Airbus was able to avoid the same production and quality control issues, and more.

[@kadiummusic]

Interesting that Americans call Airbus French and not European. 🤔

[@Felix-op1rw]

There management tried to outsource everything to get higher margins which decreased quality. The most important thing for a plane constructor is plane safety. Boeing engineers warned about it years but the management didnt care. This backfires now.

[@jonnythrive]

i used to love Boeing... but now just scared to fly one. makes me sad

[@nickolliver3021]

no need to be scared

[@hughofIreland]

Boeing is slowly edging its way to becoming a criminal enterprise.

[@wadehiggins1114]

They are scary to fly on

[@nickolliver3021]

@@wadehiggins1114 no they are not

[@-DC-]

Airbus simply runs a tighter ship, Better Quality Better Products Better People, Boeing will take a complete change in Corporate Attitude for things to improve.

[@nickolliver3021]

a leadership change is already happening

[@marlisamirabal]

Interesting how much has changed since the video had been recorded. NVDA in the 900s, TSLA, ASML and APPL down even more. I am currently holding north of $300k in a savings account waiting to invest in another huge opportunity.. Where would you invest this as of now?

[@KarolQasba]

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[@Cammimullens]

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[@Cammimullens]

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[@a.b.19.80.]

Are you kidding me? You don’t know that Boeing fired some of their best people? That they took the cue from an auto executive? And that companies like Airbus and ASML (leading chip manufacturer) were not myopic, and value their human capital? That GM did the same thing 20 years ago with EMD and they regretted it?

[@Francis-yc9nc]

In europe there is no hire and fire mentality. If you have to many people in the company you reduce the working hours and communicate open. So nobody losses there job just they earn a bit less.

[@MibomTali-cg9eo]

That's why Europe lack tech industry

[@mr.t993]

@@MibomTali-cg9eo it may very well be a initiating factor because with more worker rights you might be more reluctant to start a new company. But there are many other reasons like regulations, culture etc., you can have a tech industry without hire and fire culture.

[@trnogger]

⁠@@MibomTali-cg9eoJust because you are too ignorant to know the European tech sector doesn't mean its lacking. I mean, did you even watch the video? The biggest two competitors to Boeing are both European.

[@lppoqql]

This is what happens when the company is run by MBAs, for a company like Boeing it should be run by engineers.

[@polka120]

What about an engineer with an MBA?

[@RichardKing-sx6xc]

It's protected and subsidized by Big Government. 👌

[@lppoqql]

@@polka120 Engineers with an MBA are no longer engineers. The shXXt they teach in MBA is toxic.

[@vapsa56]

An engineer with an MBA is the worst of 2 worlds. You can be a great engineer or a great MBA. but you can't be both. And a great MBAs only job is to extract wealth out of a company by any means possible. That is not to the benefit of the company.

[@lppoqql]

@@vapsa56 You are 100% correct

[@mr.t993]

4:11 Yes, its the famous US Hire and Fire culture, basically treating workers like crap instead of like human beings. This proves that social programs like citizens benefit can be good for companies too. 4:40 Airbus is not a french company, they have assembly plants all over Europe like Germany of Example.

[@CJHump]

Airbus also makes aircraft in Mobile, Alabama.

[@rolandoleiva4137]

Simple, Europeans are less inclined to short term managerial decisions than Americans. Boeing used to be an aeronautical technical entity, but was transformed into a business looking to reduce cost and manufacture as much as possible, like any consumer goods enterprise. Horrible move that will take years if not decades to fix! At least this will give other aviation companies like Embraer and the Chinese new opportunities to grow and develop alternative products!

[@Sacto1654]

Unfortunately, Airbus has run head-on into a major issue: jet engine supply. Airbus has been forced to slow down A320neo Family airplane deliveries due to slow deliveries of new CFM International LEAP-1A and Pratt & Whitney PW1100G engines. And now Airbus is facing an uncertain certification date for the A321XLR.

[@q9r8s7t6u5v4w3x2y1z0]

5:44 7 days a week, not 5 or 6

[@ThePwig]

When governments take care of their people, the businesses thrive. The USA is a house of cards in regards to workers’ well being, feeling of worth, and support in difficult times.

[@simpiwemaqwara2184]

Aengus is one of the best CEOs he knows what he is talking about 👌

[@ramsinbarkhoy302]

This person should be running Boeing.

[@keimo2007]

Why, he's a beancounter who knows nothing about manufacturing aircraft.

[@MatthewMS.]

I’m so disappointed and sad by Boeing. They play an important role in our world and society, for them to break that trust for stock share price isn’t like a paper company. It ripples distrust throughout our entire American life and generations to come. There are literally no words of disgust, it makes elon musk look like the pope.

[@karendarrenmclaren]

"We proudly announce buy backs! Which is fraud, but we proud."

[@MG2.5.4.]

Joe is completely outdated…

[@jeffberner8206]

Boeing is just really bad with people issues. Boeing is run just like it was in the 1940s when the factory work was simplified to the point where you could take a farm hand and put him to work right away to build B-17s in the factory. They will lay off and hire assuming that they can take anyone off the street and make them a mechanic. Consequently, you see huge swings in employment depending upon the production rate. And when you move production rate up and down you incur more hidden costs in rejection tags and inefficiencies. Compensation is determined by prevalent market wage, which means that it is difficult to retain mechanics or engineers if a better job shows up down the street. The poor HR policies then lead directly to the unionization of its workforce. Essentially Boeing can't police itself and the unions need to step in to make sure that people are treated fairly. For the life of me, I don't understand why Boeing isn't pushing for universal health care, practically all of its labor issues originate over fights about who is paying for health care costs.

[@conradhenninger2209]

Covid really...just say the truth....should have come up with a clean sheet design. They cut all the cost they could from every possible place of that dinosaur 737. Short term gains for long term pains! Why was the 777 and 787 so great? I don't think the MAX 7 or MAX 10 will ever fly. Drop them and get to work on a new plane. Still lots of time to get a ton of 757 and 737-900 and 321 customers. Even if it's 5 years away. Lose some customers in the short term to make it up in the long run.

[@emerica187]

One of the major differences between Airbus and Boeing is the implementation of PALANTIR

[@utubeisfake]

what kind of diff does this make? and its uses??

[@emerica187]

Implementation of the foundry software, which helped faster production time for the planes, predictive maintenance,was used to build skywise, etc. Look into the palantir/Airbus partnership

[@emerica187]

You cannot talk about Airbus superiority without talking about palantir. These guys missed a major factor to bring up

[@utubeisfake]

@@emerica187 thanks

[@gauravghorpade9119]

This isn't about wear and tear. Boeing has severe manufacturing and design issues and this is not a software story. It's an engineering story.

[@mariajiao4855]

Boeing ships job to India, and Airbus kept manufacturing in Europe

[@timsoel566]

Airbus has plants in mirabel Canada, Mobile Alabama and Tianjin China.

[@sourabh7137]

Guess what? even Airbus ships job to India. How come there's no problem there?

[@gauravghorpade9119]

It's a downfall of American manufacturing. Hard for you to digest but it's poor engineering in USA. MCAS is an engineering failure from the US. The doors are an assembly failure. The whistle-blowers clearly highlight manufacturing quality issues on US lines.

[@Felix-op1rw]

⁠​⁠@@gauravghorpade9119Yes but not because the engineers are bad. The management tried to put profits over quality and safety. Engineers warned about these issues but management didnt listen

[@abcdef-uc1rj]

It's shoddy American business practices that put short term gain over long term sustainability that is to blame. Americans love to find a scapegoat outside their nation to blame when they should be looking in the mirror.

[@speeding240sx]

Airbus has Palantir on there side.

[@thecuzzin]

Boeing was mandating vaccinations and sending people home in accordance with the Government mandate at the time. Lots of people retired during that phase and lots of young people left during and after the return to work phase because loads of companies were flush with money and needed skilled workers so they were offering higher than standard wages. Why did this CEO avoid including that vital piece of information in the main difference between these two Companies?

[@jeffberner8206]

Damn right they should have sent people home. You can't have mechanics working in confined spaces risking getting COVID.

[@Felix-op1rw]

The problems are deeper than just the pandemic. The crashes and grounding of the max 8 happened 2019 before covid. The main reason for boeing fall is the management. The tried to outsourced everything to increase profits. The quality of the planes suffered because of this. Same happended with mc donnel douglas in the 1970s. Boeing engineered warned about this long before covid. The faa and ntsb need more power to do more quality controls. Covid increased this problem because boeing did layoff more skilled workers than airbus which are hard to recruit back after covid. The lost knowledge but not really because of vaccination mandates. This is a general US europe difference. During recessions us companies layoffs way more workers than companies in europe. You can see this that in recession us umemployment spikes way increase more than in europe. Main reason for that is government policy. European government are using an policy named „short time work“ which would probably called socialism in the us. The government pays a part of a salary. Companies do not layoff their workers and after the recession they dont have to recruit new workers and potentially lose skill.

[@robinrother1799]

Airbus isn't French.

[@MibomTali-cg9eo]

It is

[@MHG790]

@@MibomTali-cg9eo It is not. It is European.

[@MibomTali-cg9eo]

@@MHG790 r u european

[@MHG790]

Yes.

[@MHG790]

@@MibomTali-cg9eo And to nip the discussion in the bud: In a addition to being "european", I am even a citizen of the European Union. And Airbus is an "SE" meaning a "Societas Europaea" which is the a form of a european corporation.

[@engineered-mind]

The French won and Boeing prioritized its shareholders and the stock price . Boeing is on life support but for me I will never fly Boeing again

[@nickolliver3021]

why never fly boeing again

[@abcdef-uc1rj]

@@nickolliver3021 I won't either. I'm flying to the USA later this year and the cost of avoiding a Boeing Aircraft on my route is around $800 more than if I choose an airline that uses 787s and 737 Max. I've started saving up already. My peace of mind is more valuable to me than saving $800. It's much easier to avoid Boeing flights in Europe, the Middle East and Far East than in the USA.

[@nickolliver3021]

@@abcdef-uc1rj why should you not? Your not the one avoiding a boeing if that airline flies an airbus. 787s and 737s shouldn't be in service if people dobt want to get on a boeing. Your value of peace if mind is more valuable than saving $800. That's because America does love boeing products and Europe likes airbus products but doesn't mean you should avoid them for silly reasons

[@abcdef-uc1rj]

@@nickolliver3021 It might seem silly to you but it most certainly wasn't silly in hindsight for all those people that lost their lives because of Boeing's poor design and QC choices. While Airbus, Embraer, Bomardier and other major commercial jets might be far from perfect, they haven't had any crashes in recent memory caused directly by poor QC or corner cutting design choices. If stopping all newer Boeing aircraft in service from flying until they have been stripped down to the airframe and inspected very carefully from the ground up wouln't cause economic disaster for the travel industry worldwide it would already have been done. Unfortunately we like in a world where money is valued more than lives so authorities continue to reassure the public that newer Boeing products are perfectly safe despite several former Boeing QC inspectors coming out saying they aren't. We all can choose who we think is more believable and how much we value our personal safety and make our own decisions accordingly.

[@tonyyhap3370]

Please Remember during the Pandemic, Boeing was already Struggling with the Grounding of the Boeing 737 Max Fleet Worlwide, plus they were having production issues with the Boeing 787, Plus, still ongoing issues on the Certification of the Boeing 777X!! Yes, Airbus Didn't have the Issues that were plaguing Boeing at the Time.

[@abcdef-uc1rj]

It was a heaven sent opportunity to sort out all the issues away from public scrutiny which they completely squandered away.

[@pascalmartin1891]

Another idiotic French bashing? The very people who undermine the US are those who underestimate its competition. Doing it because of prejudice is just incompetence.. I agree with the "European" comment, as it was a partnership from the very start, except that the original Airbus plan (the A300) was a French-led design and build. Most Airbus models are still designed and assembled in Toulouse. So there is somewhat of a French origin story to Airbus. I am sure that people attributing Airbus to France annoys the British every time. 🙂

[@CJHump]

Airbus has an A320 line in Mobile, Alabama

[@pascalmartin1891]

@@CJHump so I guess that makes Airbus an American company? 😂

[@mikepxg6406]

Boeing is made in USA, the engineering over there is less than second rate....look at the awful standard of USA cars

[@grandmiserthe3rd434]

DEI at the controls .....!!!

[@Felix-op1rw]

Dont blame DEI for it. More like the opposite. The management is at fault. Not saying it is because of skin colour or anything related to this but because you mentioned DEI. 13/21 Boeing executives are white old men. They put profits over quality and safety. Maybe if they would be more diverse in terms of more engineers and less business administration graduates this would not have happenned