Boeing Risks 737 Production Halt, Air Lease Corp Chairman Udvar-Hazy Warns

A significant figure in the aircraft industry has expressed concerns over Boeing’s future, suggesting that the company might face a severe regulatory response if additional production issues arise. This cautionary statement comes after a recent incident involving an Alaska Airlines 737-9 Max jet, where a door plug blowout was reported.

Air Lease Corp Executive Chairman Steven Udvar-Hazy, speaking at the Airline Economics conference in Dublin, warned that the U.S. Federal Aviation Administration (FAA) might halt Boeing 737 production if another significant problem occurs. He highlighted the potential repercussions following the January 5 incident, which led to a partial grounding.

Udvar-Hazy downplayed the possibility of widespread issues, indicating that the problem seemed isolated to Boeing’s Renton plant near Seattle. However, both the FAA and Boeing have yet to comment on this assessment.

Investigators are examining whether the recent blowout was due to missing or improperly fitted bolts on the aircraft, delivered just eight weeks prior to the incident. The FAA has already taken the unprecedented step of limiting Boeing 737 production to current levels.

During the conference, Udvar-Hazy, a key figure in aviation finance, urged Boeing to reclaim its leadership in aircraft design. He refrained from suggesting management changes but emphasized the need for Boeing to focus on future aircraft innovations and improvements in operating economics.

Recalling the launch of the 737 MAX in 2011 as a response to the Airbus A320neo, Udvar-Hazy pointed out the long-standing design heritage of the 737, dating back to the 1960s. He also touched on the competitive dynamics between Boeing and Airbus, highlighting the strategic moves and counter-reactions that have shaped the single-aisle jet market.

Udvar-Hazy further noted the challenges the pandemic has posed to the supply chain, advising manufacturers to stabilize their production before ramping up to meet rising demand. He also cast doubt on Airbus (AIR.PA) plans to increase single-aisle production, citing delays in the new A321XLR model.

The industry awaits further comments from Airbus, scheduled to release its results on February 15.

Sources: AirGuide Business airguide.info, bing.com, reuters.com