An aerial photo shows Boeing 737 MAX aircraft parked on the runway at the Boeing factory in Renton, Washington, on March 21, 2019.
Lindsey Wasson | Reuters
BoeingThe latest Max crisis is forcing some of their biggest customers to rethink their growth plans this year — and perhaps beyond, several airline CEOs said Tuesday.
Their comments highlight how big Boeing buyers are feeling the effects of its problems: growing quality control problems, a slow ramp-up in production, and certification of new planes that is years behind schedule.
Southwest AirlinesBoeing, which flies only the 737, trimmed its 2024 capacity forecast and said it was reevaluating its 2024 financial guidance, citing fewer Boeing deliveries than it had previously expected this year: 46 Boeing 737 MAX planes, down from 79.
“Boeing needs to become a better company and deliveries will follow.” Southwest Airlines CEO Bob Jordan said at a JPMorgan industry conference on Tuesday.
Alaska Airlines said Tuesday that its 2024 capacity estimates are “in flux due to uncertainty about the timing of aircraft deliveries as a result of increased FAA and Justice Department scrutiny of Boeing and its operations.”
United Airlines The carrier has asked Boeing to stop building the Max 10, an aircraft that has not yet been certified by the Federal Aviation Administration, and produce more of the Max 9, which is already flying, CEO Scott Kirby said at a JPMorgan conference on Tuesday.
“It is impossible to say when the MAX 10 will be approved,” Kirby said. In January, Kirby said the airline would build a fleet plan without the Max 10 planes because of the delay.
United told employees on Friday that it will have to pause pilot hiring this spring because new Boeing planes are arriving late, CNBC reported.
Frustration among airline chiefs has been growing in recent months since Boeing's latest crisis stemming from a door panel that exploded in midair from a Max 9 plane during its crash. Alaska Airlines Trip in January. The accident has heightened scrutiny of Boeing, and a preliminary investigation by the National Transportation Safety Board said that bolts on the door panel did not appear to have been installed when the planes left the company's factory in Washington state.
“We are squarely focused on implementing changes to enhance quality across our production system and taking the time necessary to deliver high-quality aircraft that meet all regulatory requirements,” Boeing said in an email statement. “We continue to stay in close contact with our valued customers regarding these issues and our actions to address them.”
The FAA halted Boeing's planned production increases and said the latest review “identified noncompliance issues in Boeing's manufacturing process control, parts handling and storage, and product monitoring.”
Boeing CEO Dave Calhoun and other leaders have pledged to eliminate quality control problems, and have held a number of work stoppages to discuss the issues with workers.
On Tuesday, Stan Deal, CEO of Boeing's commercial aircraft unit, told employees that the company will work with employees found to have noncompliant issues during the audit to ensure they “fully understand and implement work instructions and procedures.” Weekly compliance checks, and planning more audits this month.
In a memo to employees, Dell said employees must “strictly follow every step of our manufacturing procedures and processes” and “always be on the lookout for any potential safety hazard,” and told employees “you are fully authorized to report it through your manager or the Speak portal.” Up, so we address it immediately rather than passing the risk on to the next person or position.”
