Introduction:
Randy Heisey is the Managing Director of Commercial Marketing for the Middle East and Africa, and Russia and Central Asia Regions of the Boeing Company. He spoke with Ewos IRORO, Editor, Travel & Business News based in Lagos, Nigeria on pertinent and contemporary industry issues at the 54th Annual General Assembly (AGA) of the African Airlines Association (AFRAA) held in Dakar, Senegal on December 11 – 13, 2022.
Q: I come from a country that is generally a Boeing country where most of the aircraft used are Boeing products, so to say. Over the years, we’ve seen the market in Nigeria grow. But in recent times, there has been a kind of paradigm shift, and it seems some airlines are beginning to look elsewhere, with a few of them making orders for other aircraft types like the regional jets and turbo props. What will be Boeing’s response to this as this shift is likely to bite into the market?
Thank you for being from a country that has identified with the value of the Boeing product. You raised an interesting topic about the growth of the smaller aircraft gauge manufacturers having increasing success, and there is a place in the market in Africa specifically for the smaller gauge airplanes very much like within other large, developed aviation markets. The regional jets and turbo prop aircraft play an important part in the overall network; a network that we hope Africa will be able to achieve with increased liberalization. And it’s those smaller airplanes that will provide the feed to a robust and growing network that for successful airlines includes multiple types of equipment. While those airplanes that you described have an important place and role to play, they are not the overarching solution.
I think you used the word, ‘take a bite out of our business?’ I will describe it more like adding more to the buffet, and raising the opportunity for airlines across the board, and actually enhancing the opportunity for Boeing to provide solutions because as those smaller airplanes reach the thin markets, they can provide feed to a network that allows airlines to leverage their 737s and 787s as they grow their markets; and to fill the seats on the 737s and 787s, they need to feed from the smaller markets. So it’s all a part of adding to the prosperity of the airlines and the countries where those airlines are based, by having appropriate gauged equipment for different markets of different sizes. And we’re very pleased to provide a product family that provides multiple sizes and versatile solutions to meet the needs of our customers.
Q: Since the COVID-19, there have been issues with supply chain all over the world. How are you dealing with supply chain challenges, especially to your customers in Africa?
We are dealing with it by partnering very closely with our suppliers. We have some of our most experienced engineers and project managers now working side by side with our suppliers to ensure their recovery from this very challenging issue for all sectors of the economy with labour situations as people are now returning to restoring operations. And that restoration of operations is challenging, but we’re working very closely throughout our supply chain to ensure that they are able to meet their commitments to us so that we can in turn meet our commitments to our airline partners in Africa and across the world. It’s a fact that we have had to reschedule some of our planned deliveries, but some of the airlines have slowed their recovery as well. So, we’re finding that we have a mutual agreement in many cases about the timing of the delivery of airplanes.
Q: History is being made with the curtains being drawn on your very last B747 aircraft. It is a beautiful aircraft which started operations as far back as the 1960s and has adorned the skies for so many years. Why did you decide to let it go?
That aircraft is very iconic. It’s the most recognized of all airplanes ever built as you alluded to, and had some fantastic attributes, and enabled more connections around the world because of the capability it brought. It’s also representative of the innovation that is a part of Boeing’s genetic makeup. Boeing has been a leader in bringing innovation to commercial aviation, and we did that again, over two decades ago with the 777 family which has been a good compliment to the 747 family. And then later we brought the 787 which further enhanced the ability to connect continents with airplanes of a different size, and economics that made it viable to serve directly smaller markets.
In that same vein, we’re learning from all the technology of the 787; the great strengths of the 777 family, and bringing forward a new 777 family – the 777X family; 777-9 and 777-8 which will bring the capabilities that were previously only possible with four engines to an airplane with two engines, thus providing more efficiency, more capability. It will also be a good steward of airlines’ capital investment, and a good steward of this world that aviation currently operates in, as the airplane consumes less fuel and transports people to connect the world in a much more efficient way.
Q: In recent times we’ve seen some other manufacturers trying to see how they can re-live the dream of being able to connect from one end of the world to the other in just a matter of hours. What’s Boeing’s vision in that respect for the future of aviation?
Without a dramatic innovation, development and new propulsion systems and lots of new aerodynamic technologies, the very high speed travel regime is not a near term solution. Practically speaking, in terms of economics and environmental stewardship, flying fast is not a good solution for the normal commercial aviation marketplace. There are niche markets, perhaps the business jet kind of market or very high yield connecting major business centres where it might be feasible, but the economics are challenging at best, and the issues around sustainability in terms of environmental impact have not clearly been resolved. So I won’t say there’s no place for it but that in the near term, it doesn’t look viable for commercial aviation.
Q: Air Peace is one of your launch customers based in Africa for the B737 Max. In light of the challenges that went with the Max, what assurances have you given going forward?
I am not at liberty to talk about anything that we have done with any of our customers, but in general, I would like to share with you that the 737 Max’s return to service has been successful beyond the imagination of many people. The 737 Max has been operating flawlessly with well over 99% schedule reliability, and transporting hundreds of thousands of passengers daily on operations that are now over 2.5 million flights since the resumption of services. So the 737 Max has already proven its return to service successfully to the global marketplace. It speaks for itself in Africa.
Q: With the emergence of drones and the plans for air taxis and so on, what are you looking to do in that regard, as an innovative company; and what is the plan with regards to the future because there has been increasing interest in this area?
You have identified an area that Boeing several years ago identified was an opportunity to participate in that market space. We have a joint venture where an E-VTOL, Electric Vertical Takeoff and Landing, and unmanned vehicle is currently being developed called Whisk, and the sixth generation airplane with over 1300 flight hours is currently being tested, and that will be the first urban air mobility vehicle to be certified by the FAA in the United States. And so we’re actively participating in that space and bringing all of our expertise around development of new technology and learning in the process about technologies that we can then bring forward into our primary product lineup and into the future of commercial airplanes.
Q: What’s your vision and message for the air transport industry in Africa?
For the air transport industry in Africa, I am looking forward to the unlocking of the huge potential on this continent. This continent has great talent; has great natural resources and has huge potential that will be unleashed for the future as soon as the many diverse views on the continent can reach alignment to open the skies and allow commercial aviation to do here what has happened in many other parts of the world, by connecting the corners of the continent to become unified and bringing the best of the people on this continent who will, in just a matter of a decade or two, be the largest population in the world of any other group of people; surpassing India and China in population with rising household incomes. Again all enabled by commerce which needs to be able to connect openly across the continent to realize that potential. So, my vision for the future of this continent is for the continent to collaborate even more closely to enable free transportation and free access to all the corners in connection across the continent, and without the burden of excessive fees and taxation.
