United Airlines Weighs Alternative Plans for Growth Amid Boeing 737 Max Grounding

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ICARO Media Group
News
23/01/2024 21h15

In light of the recent midair blowout incident on an Alaska Airlines flight involving the Boeing 737 Max 9, United Airlines executives have announced that they are considering alternative plans for future growth. The grounding of the Max 9 has caused uncertainty surrounding the delivery schedule for the larger Max 10 jets, for which United has orders for 277 aircraft.

United currently operates 79 Max 9 planes and expects to report a first-quarter loss due to the grounding. United's Chief Financial Officer, Michael Leskinen, stated during an update on the airline's financial results that the Max 10 might not be delivered on time, acknowledging the challenges Boeing is facing with meeting their contractual deliveries.

Although United is not canceling its order for the Max 10 jets, CEO Scott Kirby mentioned that Boeing may not be able to fulfill their delivery obligations. This has forced United to move forward without counting on those plane deliveries for their growth plans.

Despite the setbacks, Kirby expressed confidence in Boeing, stating that the company is committed to making necessary changes and fixes. However, critics have raised concerns about whether Boeing has learned from the previous Max crashes.

The grounding of the Max 9 has also significantly impacted Alaska Airlines, which operates 65 of these aircraft, representing over a quarter of their mainline fleet. The financial and operational implications for Alaska Airlines are expected to be substantial, with the carrier set to report earnings in the coming days.

The Jan. 5 incident on the Alaska flight, where a plug covering an emergency exit flew off, resulted in the grounding of the plane. The Federal Aviation Administration (FAA) is working with Boeing to inspect the other Max 9s currently in service to ensure their safety. Thousands of flights have been canceled by both United and Alaska since the grounding, which has shaken confidence in Boeing.

This disruption comes after a relatively smooth year for the airline industry, with cancellations dropping to 1.2 percent according to federal data. United, in particular, reported $600 million in profits for the final quarter of 2023.

Boeing's head of airliner division, Stan Deal, acknowledged the disruptions and expressed apologies for the significant impact on airline customers. The company is currently developing a comprehensive plan to safely bring the grounded airplanes back to service and to improve their quality and delivery performance.

The cause of the Alaska incident is still under investigation, with officials examining whether bolts securing the plug were properly installed. This incident has raised questions about Boeing's quality control, leading the FAA to initiate a separate review of the company's manufacturing process.

United Airlines, as a major Boeing customer, had placed a significant order in June 2021 for 200 Boeing 737 Max aircraft, along with 70 Airbus A321neos. The order was a boost for the Max series after the FAA certified them as safe to fly again following the fatal crashes in Indonesia and Ethiopia.

United remains committed to ensuring the safety of its passengers and aircraft, with their technical team working tirelessly to prepare the Max 9 for a safe return to service once it is ungrounded.

As the investigations continue and uncertainties persist, airlines like United and Alaska are left to navigate alternative growth strategies while closely monitoring developments with Boeing's ongoing efforts to address the issues surrounding the Max series.

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

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