Boeing strike could exacerbate global jetliner shortage, experts say

Boeing's first strike in 16 years could further compound global shortages of jetliners that have been pushing up airfares and forcing airlines to keep older jets flying longer, industry executives and analysts said. The U.S. planemaker's West Coast workers went on strike at midnight on Friday after overwhelmingly rejecting a contract deal, halting production of Boeing's workhorse 737 MAX. It is Boeing's first strike since 2008, and Boeing Chief Financial Officer Brian West warned a prolonged walkout could hurt output and "jeopardize our recovery". "Boeing is a systemically important company for global aviation," Ross O'Connor, chief financial officer of Irish leasing company Avolon, told Reuters on Friday. A strike "could have an impact on production levels, which could exacerbate some of the supply shortages that are in the market at the moment for sure," he said after Avolon announced it had acquired a large portfolio of jets from Castlelake. Airlines have struggled to expand capacity to meet rising demand as supplies of jetliners are curtailed by parts shortages, industry-wide recruitment problems and overloaded maintenance shops. Analysts have been warning the most promising part of the industry's all-important business cycle could run out before airlines have a chance to enjoy the full benefits of demand. "It's going to be a significant amount of time before we see that balance. I'm starting to evolve the hypothesis that it won't be (extra) supply that corrects it, but instead a softening of demand," said Rob Morris, global head of consultancy at Cirium Ascend.<br/>