Boeing’s Safety Issues Cause Further Delays in Jet Deliveries, Impacting U.S. Airlines’ Capacity Plans
U.S. airlines are facing additional challenges in expanding their flight capacities due to ongoing delays in jet deliveries from Boeing, which is grappling with a safety crisis. The difficulties stem from a series of regulatory investigations triggered by a Jan. 5 incident involving an Alaska Airlines Boeing 737 Max 9, where a panel detached mid-flight, raising concerns about Boeing’s production quality and safety standards.
United Airlines CEO Scott Kirby expressed uncertainty about the certification timeline for Boeing’s MAX 10 model, while airline stocks, including United’s and Southwest’s, experienced declines. Boeing’s shares also saw a significant drop, adding to a 29% decrease since the beginning of the year.
The National Transportation Safety Board (NTSB) plans to hold a public investigative hearing into the Alaska Airlines incident, with testimonies expected from Boeing, Spirit AeroSystems, and Alaska Airlines employees. The incident has prompted the Federal Aviation Administration (FAA) to restrict Boeing’s 737 production expansion plans and delay the certification of the MAX 7 and 10 models due to required design changes.
United has considered excluding the MAX 10 from its fleet plans, while Southwest announced a 42% reduction in expected MAX deliveries this year, potentially leading to a capacity cut in 2024. Southwest now anticipates receiving 46 MAX 8 jets in 2024, none of which will be the delayed MAX 7 model still awaiting FAA certification.
Amid these delivery uncertainties, United has explored purchasing more Airbus A321neo jets as a contingency, although shifting orders to Airbus poses challenges due to heavy backlogs. Alaska Airlines also indicated its 2024 capacity plans are uncertain, expecting fewer than the planned 47 aircraft deliveries from Boeing over the next two years.
In response to the crisis, Boeing has committed to enhancing its quality control measures, including weekly compliance checks and additional equipment audits for every 737 work area. Boeing Commercial Airplanes CEO Stan Deal emphasized the company’s readiness to halt production lines or delay aircraft deliveries to address quality issues.
As Boeing works to address its safety and production challenges, U.S. airlines are recalibrating their capacity expansion and delivery expectations, underscoring the broader impact of Boeing’s safety crisis on the airline industry’s ability to meet surging travel demand.
Sources: AirGuide Business airguide.info, bing.com, finance.yahoo.com