Alaska Airlines Faces $150 Million Blow as Boeing Troubles Continue to Mount
ICARO Media Group
The incident, which terrified passengers, prompted the Federal Aviation Administration (FAA) to ground 171 jets with similar designs. As a result, Alaska was forced to cancel over 3,000 flights in the aftermath of the incident.
While the airline expects travel to return to normal by early next month, it has cautioned that future growth will be lower than initially anticipated due to potential delays in deliveries of new Boeing aircraft. The FAA recently announced that the grounded Boeing planes could potentially return to service as long as they pass thorough inspections. However, the FAA is currently investigating the manufacturing practices of Boeing, leading to production output constraints.
The challenges faced by Boeing, one of the world's two major plane-makers, are now affecting the entire aviation industry. United Airlines, another major customer of the 737 Max 9, has expressed their readiness for potential delivery delays and is exploring alternative options for their aircraft orders. Executives at Southwest and American Airlines have also echoed these concerns about delayed aircraft and expressed their frustration with Boeing's situation.
American Airlines Chief Executive Robert Isom has called upon Boeing to "get their act together," while Alaska Airlines' CEO, Ben Minicucci, stated that he is engaged in "tough" conversations with Boeing. However, he refrained from threatening to cancel orders, emphasizing the airline's longstanding relationship with the manufacturer. Mr. Minicucci also reassured passengers that the safety of flying on Alaska Airlines' planes remains the top priority.
Boeing itself has issued an apology for the disruption caused and has promised to work transparently and collaboratively with regulators to resolve the ongoing issues. However, the company has been grappling with various manufacturing challenges in recent years, attempting to restore its reputation following the fatal accidents involving a different model of the 737 Max in 2018 and 2019, which claimed the lives of 346 people.
Aviation industry analyst Robert Mann noted that airlines had previously had staff overseeing more of the manufacturing process, but cost-cutting measures in recent decades led to the abandonment of this practice. With the industry currently dominated by just two major players, Boeing and European rival Airbus, airlines find themselves somewhat trapped in the situation.
While the US aviation regulator has not granted permission for Boeing to increase production of its best-selling plane, concerns continue to mount. A whistleblower has described Boeing's manufacturing as a "rambling, shambling, disaster waiting to happen." As one of the largest operators of Boeing 737 Max 9 jets, Alaska Airlines has been particularly impacted, with numerous flight cancellations and increasing questions from passengers about safety protocols.
As the investigations into Boeing's manufacturing practices and the grounding of the 737 Max jets continue, the aviation industry braces for further disruptions. It remains to be seen how these issues will be resolved and their long-term impact on Boeing, airlines, and passenger confidence.