Airline Executives Call for Accountability Amid Boeing Challenges

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ICARO Media Group
Politics
26/01/2024 22h30

Airline executives are expressing their frustration with Boeing's recent challenges surrounding its 737 Max 9 jets and are calling for accountability. The concerns stem from an incident in which a door plug flew off during an Alaska Airlines flight earlier this month, leading to a mandatory grounding of 171 aircraft. United Airlines and Alaska Air are the only two US carriers directly affected by the grounding.

Even American Airlines CEO Robert Isom voiced criticism of Boeing's leadership, emphasizing the need for them to "get their act together." Alaska Air CEO Ben Minicucci also highlighted the importance of holding Boeing accountable while expressing commitment to the long-standing partnership.

The grounding of the 737 Max 9 fleet has resulted in significant financial consequences for Alaska Air, with an estimated hit of $150 million. Daily flight cancellations have ranged from 110 to 150 flights, and executives anticipate delayed plane deliveries in 2024 and 2025.

United Airlines shared similar concerns, stating that it is unrealistic to expect all of the planned Boeing Max 9 deliveries to proceed as scheduled. The airline also expressed doubts about Boeing's ability to deliver Max 10 aircraft, which have yet to be certified.

Southwest Airlines acknowledged uncertainty regarding the timing of Boeing deliveries and the certification of Boeing's Max 7 aircraft. Delta Air Lines, while not currently operating the Max aircraft, expressed faith in Boeing's ability to restore confidence.

Some industry experts are calling for a shakeup in Boeing's C-suite following the Alaska Air incident. However, others believe that the issues at Boeing are the result of a long-term cultural shift within the company that cannot be resolved overnight.

Boeing has taken steps to address the concerns, appointing retired Admiral Kirkland Donald as an independent advisor to lead a "quality review" of its commercial quality management system and practices. The Federal Aviation Administration (FAA) has also announced that the grounded 737 Max 9 planes will be eligible to return to service after undergoing individual inspections and maintenance checks.

As a result of these challenges, Boeing's market cap has decreased by almost $30 billion since the mid-air incident on January 5. The stock is down approximately 20% year to date.

In conclusion, airline executives are demanding accountability from Boeing as they grapple with the consequences of the 737 Max 9 grounding. The airlines' financial losses and concerns about delayed deliveries highlight the wider impact of Boeing's challenges.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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