Several airline CEOs have voiced concerns over Boeing’s latest Max crisis, signaling potential shifts in growth plans for the current year and beyond.
The remarks from industry leaders underscore the ripple effects felt by Boeing’s major customers, stemming from a combination of escalating quality control issues, sluggish production increases, and prolonged delays in aircraft certification.
Southwest Airlines, exclusively operating Boeing 737s, announced a revision to its 2024 capacity forecast, citing fewer-than-anticipated Boeing deliveries for the year. The carrier now expects to receive 46 Boeing 737 Max planes, a significant reduction from the initial projection of 79.
Speaking at a JPMorgan industry conference, Southwest Airlines CEO Bob Jordan emphasized the need for Boeing to address its underlying challenges, indicating that improved company performance would subsequently lead to enhanced delivery schedules.
Similarly, Alaska Airlines conveyed uncertainties surrounding aircraft deliveries in light of heightened scrutiny from regulatory bodies. The carrier acknowledged that its 2024 capacity estimates are subject to flux due to the timing uncertainties arising from increased Federal Aviation Administration and Department of Justice scrutiny on Boeing.
United Airlines CEO Scott Kirby disclosed the airline’s decision to halt Max 10 production requests from Boeing, citing the lack of FAA certification for the aircraft. Instead, United Airlines intends to focus on increasing orders for Max 9 aircraft, which are already operational.
The frustration among airline executives has been mounting since Boeing’s recent crisis, which originated from a door panel incident during an Alaska Airlines flight in January. The incident prompted heightened scrutiny on Boeing’s operations, with preliminary investigations revealing potential quality control lapses.
In response to mounting concerns, Boeing reiterated its commitment to implementing corrective measures to strengthen its production system and ensure compliance with regulatory standards. The company emphasized ongoing communication with its customers regarding remedial actions.
The FAA’s intervention, including halting planned output increases and identifying non-compliance issues in Boeing’s manufacturing processes, underscores the seriousness of the situation.
Boeing’s leadership, led by CEO Dave Calhoun, has pledged to address quality control issues through comprehensive measures, including increased employee training and regular compliance checks.
Boeing’s commercial airplanes unit CEO, Stan Deal, emphasized the importance of adherence to manufacturing procedures and proactive reporting of safety concerns among employees. Deal outlined plans for enhanced compliance measures and reiterated Boeing’s commitment to prioritizing safety in its operations.
