An aerial photo shows Boeing 737 Max airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, on March 21, 2019.
Lindsey Wasson | Reuters
Boeing‘s latest Max crisis is forcing a few of its biggest customers to rethink their growth plans this yr — and possibly beyond, several airline CEOs said Tuesday.
Their comments highlight how Boeing’s top buyers have felt the consequences of its problems: snowballing quality control issues, a slow increase of output and certification of recent aircraft that’s running years behind schedule.
Southwest Airlines, which only flies Boeing 737s, trimmed its 2024 capability forecast and said it was reevaluating its 2024 financial guidance, citing fewer Boeing deliveries than it previously expected this yr: 46 Boeing 737 Max planes, down from 79.
“Boeing must turn out to be a greater company and the deliveries will follow that,” Southwest Airlines CEO Bob Jordan said at a JPMorgan industry conference Tuesday.
Alaska Airlines said Tuesday that its 2024 capability estimates are “in flux as a result of uncertainty across the timing of aircraft deliveries consequently of increased Federal Aviation Administration and Department of Justice scrutiny on Boeing and its operations.”
United Airlines CEO Scott Kirby said at the JPMorgan conference on Tuesday that the carrier has asked Boeing to stop constructing it Max 10 planes, an aircraft that hasn’t yet been certified by the FAA, and produce more Max 9s, that are flying already.
“It’s not possible to say when the Max 10 goes to get certified,” Kirby said. In January, Kirby said the airline would construct a fleet plan without the Max 10 due to delays.
On Friday, United told staff that it will must pause pilot hiring this spring because latest Boeing planes are arriving late, CNBC reported.
The frustration from airline bosses has been constructing in recent months since Boeing’s latest crisis stemmed from a door panel that blew out midair from a Max 9 plane during an Alaska Airlines flight in January. The accident ramped up scrutiny on Boeing, and a preliminary National Transportation Safety Board investigation said bolts on the door panel didn’t look like attached when the planes left the corporate’s factory in Washington state.
“We’re squarely focused on implementing changes to strengthen quality across our production system and taking the essential time to deliver top quality airplanes that meet all regulatory requirements,” Boeing said in an emailed statement. “We proceed to remain in close contact with our valued customers about these issues and our actions to deal with them.”
The FAA has halted Boeing’s planned output increases and said a recent audit “identified non-compliance issues in Boeing’s manufacturing process control, parts handling and storage, and product control.”
Boeing’s CEO Dave Calhoun and other leaders have vowed to stamp out quality control problems, and have been holding a variety of work pauses to debate issues with employees.
On Tuesday, Stan Deal, Boeing’s business airplanes’ unit CEO, told staff that the corporate would work with employees who’ve been found to have non-compliant issues throughout the audit to be sure they “fully understand the work instructions and procedures” and implement weekly compliance checks, and plan for more audits this month.
In a note to staff, Deal said employees must “precisely follow every step of our manufacturing procedures and processes” and “all the time be looking out for a possible safety hazard,” telling employees “you’re fully empowered to report it through your manager or the Speak Up portal, so we address it instantly slightly than travel the danger to the subsequent person or position.”