In an unprecedented expression of frustration, the chiefs of United Airlines and Alaska Airlines have openly criticized Boeing over persistent manufacturing issues. These problems have grounded over 140 of their aircraft, including the Boeing 737 Max, stirring a potent mix of anger and disappointment among the airlines’ top executives.
United’s CEO Eyes Alternatives
United CEO Scott Kirby didn’t mince words, expressing his discontent with Boeing’s performance. His airline, hampered by the grounding of 79 Max 9s, is now contemplating alternatives to future Boeing models. The situation has led to a financial hit, with United bracing for a loss in the year’s first quarter.
Alaska Airlines: A Demand for Quality Improvement
Alaska Airlines CEO Ben Minicucci’s anger was palpable during his interview with NBC Nightly News. His demand from Boeing is clear: a significant overhaul of their internal quality programs. The airline, which had plans to order Max 10s, is now re-evaluating its options.
The Incident That Sparked the Outrage
A Jan. 5 incident involving an Alaska Boeing 737 Max 9, where a door plug blew off mid-flight, leaving a gaping hole, was the tipping point. This led to the grounding of most Max 9s and triggered investigations into potential manufacturing defects.
Boeing’s Response: A Focus on Quality
In response to the criticism, Boeing announced a pause in its 737 factory operations to conduct special sessions dedicated to quality improvement. The company’s CEO, Stan Deal, extended an apology to the airlines, acknowledging the disruption caused and promising comprehensive changes.
The Bigger Picture: Delays and Delivery Challenges
The grounding of the Max 9 jets is just a part of Boeing’s larger problem. The company has faced delays and manufacturing flaws with other models, including the 787 and the yet-to-be-certified Max 7 and Max 10. United, for instance, received 24 fewer aircraft than anticipated last year.
The Financial Ripple Effect
The grounding has not just affected the airlines operationally but also financially. Shares of United Airlines and Alaska Air Group saw fluctuations following the announcements, reflecting the market’s response to the ongoing saga.
Safety and Oversight in the Spotlight
The Federal Aviation Administration (FAA) has heightened its oversight of Boeing, investigating whether quality procedures are being followed. The National Transportation Safety Board is also involved, looking into the January incident on the Alaska jetliner.
Boeing’s Troubled Past
This is not the first time Boeing’s Max line has faced scrutiny. The model’s history includes the tragic crashes in 2018 and 2019 that led to a 20-month worldwide grounding. These incidents raised serious questions about Boeing’s design practices and the FAA’s oversight.
Looking Ahead: Airlines Reconsider Their Fleets
As United and Alaska Airlines grapple with the immediate challenges, the broader question remains: How will these issues influence their fleet strategies and growth plans? With Boeing’s reputation for quality under scrutiny, the aviation industry watches closely how these airlines will navigate through these turbulent times.
Stay up to date on other relevant news in our “Stock Market” section.