United Airlines CEO Disappointed in Boeing’s Manufacturing Problems, Considers Alternatives to Boeing 737 Max
United Airlines CEO, Scott Kirby, expressed his disappointment in the ongoing manufacturing problems at Boeing that have resulted in the grounding of numerous United jetliners. As a result, the airline is now considering alternatives to purchasing a future, larger version of the Boeing 737 Max. Kirby emphasized that Boeing needs to take “real action” to restore its previous reputation for quality.
This announcement comes after United Airlines revealed that it expects to incur financial losses in the first quarter of this year due to the grounding of its Boeing 737 Max 9 jets. Currently, United operates 79 of these planes, which were grounded by federal regulators following an incident where a panel blew out of an Alaska Airlines Max 9 during a flight, causing significant damage. Investigators are currently examining whether missing or broken bolts contributed to the incident.
While Kirby believes that the Max 9s could potentially be cleared to fly again soon, he expressed his disappointment in Boeing’s recurring manufacturing challenges. In recent years, manufacturing flaws have caused delays in the delivery of Max jets and the larger Boeing 787 plane. United received 24 fewer Boeing aircraft than expected last year.
United Airlines has an existing order for Max 10 jets, a larger version of the Max line. However, both the Max 10 and the smaller Max 7 are facing significant delays in receiving certification from the Federal Aviation Administration. The grounding of the Max 9 jets further complicates Boeing’s efforts to gain approval for these new models. Kirby stated that the Max 10 is at least five years behind schedule and may face further delays.
Kirby acknowledged that the grounding of the Max 9 jets is a significant setback for United Airlines and could impact its growth plans. He mentioned that the airline will develop an alternative plan that does not include the Max 10. While Kirby did not specify which planes United Airlines may consider acquiring instead, he noted that Airbus, Boeing’s European rival, is the only other global manufacturer of such large planes.
The decision to forgo the Max 10 will likely result in slower growth for United Airlines than initially anticipated. However, Kirby’s disappointment in Boeing’s manufacturing problems and the grounding of the Max 9 jets has led to the exploration of alternative options.
In response to the situation, Stan Deal, CEO of Boeing’s commercial airplanes division, issued an apology for the grounding of the Max 9 jets and assured that the company is implementing changes. Deal stated, “We have let down our airline customers and are deeply sorry for the significant disruption to them, their employees, and their passengers.” He further added that Boeing is taking comprehensive action to safely return these airplanes to service and improve their quality and delivery performance.
Following United Airlines’ announcement, shares of United Airlines Holdings Inc. experienced a 6% increase on Tuesday. On the other hand, shares of The Boeing Co. fell slightly by less than 1%.
The disappointment expressed by United Airlines CEO Scott Kirby regarding Boeing’s manufacturing problems and the grounding of the Max 9 jets highlights the challenges faced by both companies. As they navigate these issues, it remains to be seen how they will overcome these setbacks and restore confidence in their products and services.