Boeing Struggling with Quality Control Scrutiny, Resorts to Cutting Flights, Hiring Freezes to Address Internal Issues

By Moon Harper

Mar 13, 2024 01:18 AM EDT

According to statements made by several airline CEOs on Tuesday, the newest crisis involving Boeing's Max is compelling some of its major clients to reconsider their growth strategies for this year and potentially into the future.

Their remarks underscore how Boeing's major purchasers have been impacted by its problems, including escalating quality control issues, a sluggish rise in production, and the significant delay in certifying new aircraft.

Southwest and Alaska Airlines Decreased Deliveries

Southwest Airlines, known for exclusively operating Boeing 737s, has revised this year's capacity forecast due to fewer-than-anticipated Boeing deliveries, where it expects to receive 46 Boeing 737 Max planes compared to the earlier projection of 79. During a JPMorgan industry conference on Tuesday, Southwest Airlines CEO Bob Jordan highlighted the need for Boeing to improve, emphasizing that enhanced performance from the company would lead to increased deliveries.

Alaska Airlines stated that their 2024 capacity projections are uncertain due to delays in aircraft deliveries caused by heightened scrutiny from the Federal Aviation Administration and the Department of Justice on Boeing's operations.

United Airlines Production Halt and Hiring Freeze

United Airlines CEO Scott Kirby mentioned that they have requested Boeing to halt production of Max 10 planes, which are not yet FAA certified, and focus on producing more Max 9s already in service. Kirby stated that it is uncertain when the Max 10 will be certified. In January, he mentioned that the airline would create a fleet plan without the Max 10 due to delays. United informed its staff on Friday that it needs to halt pilot hiring this spring because new Boeing planes are arriving behind schedule, as per CNBC.

Growing Scrutiny Over Boeing's Midair Blowout

Airline executives have been growing more frustrated recently because of Boeing's latest crisis, which occurred when a door panel blew out midair on a Max 9 plane during an Alaska Airlines flight in January, intensifying scrutiny on Boeing. A preliminary investigation by the National Transportation Safety Board found that bolts on the door panel did not seem appropriately attached when the planes were delivered from the company's factory in Washington state.

Boeing's Commitment to Quality Control Issues

Boeing stated in an email that it is fully committed to implementing changes to enhance quality throughout its production system and is dedicated to delivering high-quality airplanes that meet all regulatory standards. It also mentioned maintaining close communication with its customers regarding these issues and the steps being taken to resolve them.

The FAA has stopped Boeing from increasing its production and stated that a recent audit found 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 promised to eliminate quality control issues and have been conducting several work pauses to address workers' concerns.

On Tuesday, Stan Deal, CEO of Boeing's commercial airplanes unit, informed staff that the company will assist employees found with non-compliant issues during the audit to ensure they fully comprehend work instructions and procedures and plans to conduct weekly compliance checks and more audits this month.

In a message to staff, Deal emphasized the importance of strictly adhering to manufacturing procedures and processes and staying vigilant for safety hazards. He encouraged employees to report any concerns promptly through their manager or the Speak Up portal to address issues immediately and prevent risks from being passed on.