Boeing Max crisis forces airlines to cut flights, pause hiring, CEOs say

Boeing‘s
latest
Max
crisis
is
forcing
some
of
its
biggest
customers
to
rethink
their
growth
plans
this
year
—
and
possibly
beyond,
several
airline
CEOs
said
Tuesday.

Their
comments
highlight
how
Boeing’s
top
buyers
have
felt
the
effects
of
its
problems:
snowballing
quality
control
issues,
a
slow
increase
of
output
and
certification
of
new
aircraft
that
is
running
years
behind
schedule.

Southwest
Airlines,
which
only
flies
Boeing
737s,
trimmed
its
2024
capacity
forecast
and
said
it
was
reevaluating
its
2024
financial
guidance,

citing
fewer
Boeing
deliveries
than
it
previously
expected
this
year:
46
Boeing
737
Max
planes,
down
from
79.

“Boeing
needs
to
become
a
better
company
and
the
deliveries
will
follow
that,”


Southwest
Airlines
CEO
Bob
Jordan
said
at
a
JPMorgan
industry
conference
Tuesday.

Alaska
Airlines
said
Tuesday
that
its
2024
capacity
estimates
are
“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.”

United
Airlines
CEO
Scott
Kirby
said
at
the
JPMorgan
conference
on
Tuesday
that
the
carrier
has
asked
Boeing
to
stop
building
it
Max
10
planes,
an
aircraft
that
hasn’t
yet
been
certified
by
the
FAA,
and
produce
more
Max
9s,
which
are
flying
already.

“It’s
impossible
to
say
when
the
Max
10
is
going
to
get
certified,”
Kirby
said.
In
January,
Kirby
said
the
airline
would
build
a
fleet
plan
without
the
Max
10
because
of
the
delays.

On
Friday,
United
told
staff
that
it
would
have
to
pause
pilot
hiring
this
spring
because
new
Boeing
planes
are

arriving
late,
CNBC
reported.

The
frustration
from
airline
bosses
has
been
building
in
recent
months
since
Boeing’s
latest
crisis
stemmed
from
a
door
panel
that
blew
out
midair
from
a
Max
9
plane
during
an


Alaska
Airlines
flight
in
January.
The
accident
ramped
up
scrutiny
on
Boeing,
and
a
preliminary
National
Transportation
Safety
Board
investigation
said
bolts
on
the
door
panel
didn’t
appear
to
be
attached
when
the
planes
left
the
company’s
factory
in
Washington
state.

“We
are
squarely
focused
on
implementing
changes
to
strengthen
quality
across
our
production
system
and
taking
the
necessary
time
to
deliver
high
quality
airplanes
that
meet
all
regulatory
requirements,”
Boeing
said
in
an
emailed
statement.
“We
continue
to
stay
in
close
contact
with
our
valued
customers
about
these
issues
and
our
actions
to
address
them.”

The
FAA
has
halted
Boeing’s
planned
output
increases
and
said
a
recent
audit
“identified
non-compliance
issues
in
Boeing’s
manufacturing
process
control,
parts
handling
and
storage,
and
product
control.”

Boeing’s
CEO
Dave
Calhoun
and
other
leaders
have
vowed
to
stamp
out
quality
control
problems,
and
have
been
holding
a
number
of
work
pauses
to
discuss
issues
with
workers.

On
Tuesday,
Stan
Deal,
Boeing’s
commercial
airplanes’
unit
CEO,
told
staff
that
the
company
would
work
with
employees
who
have
been
found
to
have
non-compliant
issues
during
the
audit
to
make
sure
they
“fully
understand
the
work
instructions
and
procedures”
and
implement
weekly
compliance
checks,
and
plan
for
more
audits
this
month.

In
a
note
to
staff,
Deal
said
employees
must
“precisely
follow
every
step
of
our
manufacturing
procedures
and
processes”
and
“always
be
on
the
lookout
for
a
potential
safety
hazard,”
telling
employees
“you
are
fully
empowered
to
report
it
through
your
manager
or
the

Speak
Up
portal,
so
we
address
it
right
away
rather
than
travel
the
risk
to
the
next
person
or
position.”