Honeywell CEO Says He’s “Bullish” On Boeing 737 Max Airplane
Darius Adamczyk says grounded aircraft has had a “modest” financial impact at Honeywell and he's "optimistic" it will be flying by summer.
Honeywell CEO Darius Adamczyk says he is “hopeful” that Boeing’s beleaguered aircraft, the 737 Max, will get back in service by summer. He believes the aerospace company is close to resolving the tech problems that caused two deadly crashes in March and grounded the planes all around the world.
This is a critical week for Boeing which is meeting with global regulators who will assess the software updates and other fixes the company has made.
Honeywell (HON) has a lot at stake with what happens at Boeing (BA). The conglomerate is a big supplier to Boeing, manufacturing mechanical systems and avionics for the Max. Those systems were not connected with the crashes, but as Adamczyk says of the Boeing business relationship, “they are a very, very important customer for us. We’re here to assist them in any way we can to get that aircraft flying again.”
So far, the financial impact on Honeywell has been “relatively modest”, according to Adamczyk. And while it might take time to convince passengers that the planes are safe, Adamczyk is still a big believer in the Boeing 737.
“We do think it ‘s a good aircraft that has some challenges that need to be addressed,” he says. “But long-term, we believe this is a sound aircraft that will be flying again.” He adds, “To me, I continue to be bullish on the aircraft”.
Adamczyk also talks with Fortune about how he plans to transform Honeywell into a “software industrial”. Acquisitions are a big component of the plan. Ever since Adamczyk became CEO in 2017, he has been spinning off assets and making several new acquisitions. That means technological change for the 113-year-old company that is ranked number 77 on the Fortune 500 list of the biggest companies in America. There will be other big changes too. Adamczyk recently announced Honeywell is relocating its global headquarters to Charlotte, North Carolina from Morris Plains, N.J.
Watch the video above for more from my interview with Adamczyk.