Airline bosses have lashed out at Boeing over a series of safety and production problems — loose bolts, a discarded spanner found under floorboards, delayed shipments — as scrutiny of the company’s manufacturing processes tightens.
“I’m angry,” Ben Minicucci, chief executive of Alaska Airlines, told NBC News on Tuesday after the carrier found “a lot” of loose bolts while inspecting its fleet of Boeing 737 Max 9 planes after a door blew off one of the planes. mid air on January 5th. “My demand for Boeing is, what are they going to do to improve their quality programs internally?”
After the incident, the Federal Aviation Administration grounded about 170 Max 9 jets until they could be inspected and said it would investigate whether Boeing failed to ensure the plane was safe.
Scott Kirby, the chief executive of United Airlines, told CNBC on Tuesday that the Max 9 grounding was “probably the straw that broke our camel’s back.” He also criticized production delays for another Boeing jet the airline had ordered, the Max 10, saying he doubted the planes would be delivered soon.
“We’re going to make at least one design that the Max 10 won’t have,” Mr. Kirby said.
It’s an unusual escalation: Airlines and their manufacturers typically enjoy a symbiotic relationship, with carriers often competing with each other to place orders for new aircraft, which can have years-long waiting lists. Along with European plane maker Airbus, Boeing makes the majority of the world’s commercial jets, limiting options for airlines looking for new planes.
“Boeing’s maintenance and production errors in recent months are unprecedented, so it’s not surprising that airlines are beyond frustrated and behaving in an unprecedented manner,” said Xavier Smith, director of energy and industry research. at AlphaSense.
But at this point, criticizing Boeing may be the most that CEOs can do to vent their frustrations without causing panic about airplane safety.
Jonnathan Handshoe, an airline analyst for CFRA Research, said the public admonitions amounted to reassuring passengers that airlines were concerned about safety while impressing upon Boeing the seriousness of the crisis.
“It’s more like, ‘Hey, we’re calling you. This is an issue. It needs to be fixed because there are clearly quality control issues,” Mr Handshoe said.
Stan Deal, chief executive of Boeing’s commercial airplanes unit, said in a statement Tuesday that the company had “disappointed our airline customers” and “deeply regrets the significant disruption to them, their employees and their passengers.”
Mr. Handshoe said airlines could theoretically cancel large orders of new Boeing planes — United ordered 50 Boeing 787 Dreamliners in October and a year earlier said it planned to buy 100 by 2032 — but because of the current headwinds and market constraints, it was unlikely to do so.
United, like other airlines, is trying to upgrade its fleet to more fuel-efficient planes. Since the FAA ordered the Max 9 grounded, airlines have been forced to use older, less fuel-efficient planes. This has increased their fuel costs, Mr Handshoe said, even though the cost of jet fuel has fallen in recent months.
Another issue is that the FAA mandate has reduced airline fleets at a time when they are trying to expand. Reduced capacity has increased costs, which are passed on to consumers.
The constraints are heightened for a company like Alaska Airlines, which has a smaller fleet, which it sought to expand with a proposed $1.9 billion purchase of Hawaiian Airlines.
Since the January 5 incident, Boeing’s stock has fallen more than 13%, while Alaska’s has fallen 5%.
Some airline executives have refrained from criticizing Boeing, even going so far as to express confidence in the manufacturer.
“Boeing is so pivotal to our industry,” Delta Air Lines CEO Ed Bastian said during a Jan. 12 appearance on CNBC. “They are vital to our economy and they will understand that,” noted Delta, which does not fly either the Max or the 787.
Dave Calhoun, who became Boeing CEO to fix the company after the fatal Max crashes in 2018 and 2019, is meeting this week with senators, including Maria Cantwell, D-Washington and chairman of the Commerce Committee. Ms Cantwell said last week she planned to hold hearings on the Max 9 landings.
Boeing’s woes may have a lasting impact. Michael Leskinen, United’s chief financial officer, told analysts that the territories will affect growth in the “next few years.” Michael O’Leary, chief executive of Ryanair, a European low-cost airline that is one of Boeing’s biggest customers, also doubts the Max 10 will be delivered soon.
Mark Walker contributed to the report.
