United Airlines Rethinks Plans for Boeing’s 737 Max 10 Amid Delivery Concerns
In a surprising turn of events, United Airlines Holdings Inc. announced on Tuesday that it is reconsidering its long-term plans for Boeing’s largest 737 Max jet, the Max 10. This decision comes after the recent grounding of several Max 9s by the government, raising concerns about Boeing’s ability to deliver planes on time. While United CEO Scott Kirby clarified that the airline is not canceling its orders for the Max 10, he did mention that they are taking the jet “out of our internal plans.”
Kirby further stated, “We’ll be working on what that means exactly with Boeing. But Boeing is not going to be able to meet their contractual deliveries on at least many of those airplanes.” United currently has 277 Max 10 jets on order for the remainder of the decade, with 31 Max 9s scheduled for delivery this year. However, Chief Financial Officer Michael Leskinen expressed skepticism about the timely arrival of these jets, deeming it “unrealistic.”
Leskinen explained, “The reality is that with the Max grounding, this is the kind of straw that broke the camel’s back with believing that the Max 10 will deliver on the schedule we had hoped for. It’s a great aircraft. But we can’t count on it. So we’re working on alternate plans.”
This decision by United Airlines deals yet another blow to Boeing’s reputation, which has been marred by safety concerns following a recent incident involving an Alaska Airlines 737 Max 9. A panel tore off during a flight earlier this month, leading to the grounding of 171 Boeing 737 Max 9s by the Federal Aviation Administration (FAA). Consequently, both United and Alaska Airlines faced numerous flight cancellations.
United reported its fourth-quarter results on Monday, revealing expectations of losses in the first quarter due to the impact of these cancellations. However, the airline’s shares saw an increase on Tuesday following its full-year profit forecast. In addition to the Max 9 grounding, the FAA also recommended visual inspections of mid-exit door plugs on Boeing’s 737-900ER planes to ensure proper security.
The global grounding of the 737 Max in 2019, prompted by two fatal crashes, has already taken a toll on Boeing’s reputation and financial standing. The recent discovery of loose bolts on Alaska Airlines’ Max 9s has only added to the frustration and disappointment expressed by Ben Minicucci, the CEO of Alaska Airlines. In an interview with NBC News, Minicucci demanded improvements in Boeing’s in-house quality programs.
The future of Boeing’s 737 Max series remains uncertain as airlines like United reconsider their plans and demand assurances from the aircraft manufacturer. While the Max 10 was once seen as a promising addition to United’s fleet, the delivery concerns have forced the airline to explore alternative options. As the industry closely watches these developments, Boeing faces mounting pressure to address safety issues and restore confidence among its customers.