As bad news continues to pile up for Boeing, with additional reports of possible careless manufacturing and inspection procedures, leading to groundings and delivery delays, some of the company’s airline fans are getting impatient.
And they have reason to: the delivery delays, caused in part by added inspections and reworking and partly by less-than-smooth paths to certification of two key new models, are costing the airlines serious money, and while they may end up with some compensation from Boeing, it’s not likely to meet the whole cost.
That’s in part because the delivery delays are forcing airlines to change short-term schedule plans for this summer with fewer planes, and to also face the possibility of more damage in the form of planes they are counting on for the years ahead to open new routes, reduce carbon emissions and fly with more efficient engines.
For example, Southwest, one of the largest operators of 737s—the only plane it flies—was expecting 79 new planes this year, 58 Max 8s and 21 Max 7s. Instead, it will get 46 8s this year, and no longer expects any 7s this year, because the model has still not been certified for service by the FAA. Net result for Southwest: Reduced schedules over the rest of the year, and cancelation of most new hiring of pilots and flight attendants.
United’s woe is at the other end of the 737 size range; it is the launch customer for the 737-10, with 277 of them on order; deliveries were scheduled to start this year, but with certification still uncertain, the airline has asked Boeing to stop building and warehousing them until certification is clear, and to build more -9s for United.
American says it is less concerned about the -10, because it’s fleet plans don’t include operating them before 2028, but says that its orders, including a recent large one, include provisions allowing it to switch to other Max models.
A major European customer, budget airline Ryanair, has said it will have fewer flights and higher prices this summer, blaming it on delayed deliveries for its all-737 operation.
The airlines all say they are working with Boeing and expect the company to shape up and meet FAA requirements for safety. Scott Kirby, United CEO, told press that “I am encouraged with Boeing, I think they have accepted that there are larger changes they need to make. This is not a 12-month issue. This is a two-decade issue. And I’d rather Boeing do what they need to do, and I think they are now.”
In most cases they have little choice but to push Boeing: Airbus, the only other supplier of comparable aircraft, is all booked up for years ahead, including orders from United and American, among other U.S. airlines. Still, Kirby said it: if an opportunity came up, the airline wouldn’t hesitate to do an about face and buy Airbus A321s instead.
