Boeing, the American aerospace giant, is under intense scrutiny as it deals with production challenges that are causing significant delays in aircraft deliveries to its airline customers.
The repercussions are being felt across the industry, with major carriers like United Airlines, Southwest Airlines, and Alaska Airlines all expressing frustration and being forced to adjust their growth plans and operations.
United Airlines has taken the drastic step of asking its pilots to take unpaid leave in May due to the delayed deliveries of Boeing 737 and 787 aircraft.
“We can confirm that due to the recent delays in Boeing deliveries, our forecasted block hours for 2024 have been reduced, and we are offering our pilots voluntary programs for the month of May to reduce excess staffing,” United said in a statement on April 1.
United Airlines is asking pilots to take time off in May because of a shortage of new Boeing planes https://t.co/IZFKBKqsUN
— The Associated Press (@AP) April 2, 2024
The Air Line Pilots Association, representing United’s pilots, warned that further time off may be necessary “for the summer bid periods and potentially into the fall.”
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Scott Kirby, United’s CEO, has been frank about his disappointment with Boeing. “We had contractual deliveries for 80 MAX 10s this year alone, but those aircraft aren’t even certified yet and it is impossible to know when they will arrive,” he said in a staff memo.
Kirby emphasized United’s position as Boeing’s biggest customer and the need for the manufacturer to overcome its consistent manufacturing challenges.
Southwest Airlines, which operates an all-Boeing fleet, is also feeling the impact.
The uncertainty surrounding Boeing’s ability to deliver has led Southwest to reevaluate “all prior full-year 2024 guidance, including the expectation for capital spending,” and institute a hiring freeze.
CEO Bob Jordan didn’t mince words, stating, “Boeing needs to become a better company. I, and I know other CEOs, have told Boeing, get your issues understood and get the issues fixed.”
Alaska Airlines, directly affected by the January incident when a door plug blew off a nearly new 737 MAX 9 mid-flight, expects to face consequences throughout the year.
United Airlines is asking pilots to take time off in May because of a shortage of new Boeing planes https://t.co/IZFKBKqsUN
— The Associated Press (@AP) April 2, 2024
The airline told the SEC, “Full-year capacity expectations are still in flux due to uncertainty around the timing of aircraft deliveries as a result of increased Federal Aviation Administration and Department of Justice scrutiny on Boeing and its operations.”
The door-plug incident has prompted the FAA to prohibit Boeing from increasing production of its best-selling 737 MAX.
In response to the mounting pressure, Boeing has undergone a management shakeup, with CEO Dave Calhoun announcing his intention to step down at the end of the year, along with the company’s board chairman and head of the commercial airplanes department.
As airlines scramble to adapt to the delays and adjust their operations, the pressure is on Boeing to address its manufacturing issues and rebuild trust with its customers.
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The coming months will be critical for the company as it works to overcome these challenges and meet the needs of the recovering aviation industry.
