Airline will consider alternatives for Boeing’s next plane: United CEO

Kirby said the Max 10 is at least five years behind schedule and could be pushed further into the future.

The CEO of United Airlines says he is disappointed with ongoing production problems at Boeing that have led to the grounding of dozens of United jetliners, and the airline will consider alternatives to buying a future, larger version of the Boeing 737 Max .

United Airlines CEO Scott Kirby said Tuesday that Boeing needs real action to restore its previous reputation for quality.

Kirby’s comments came a day after United announced it expects to lose money in the first three months of this year due to the grounding of its Boeing 737 Max 9 jets.

United has 79 of those planes, which federal regulators grounded more than two weeks ago after a panel blew out of an Alaska Airlines Max 9 mid-flight, leaving a gaping hole in the plane. Investigators are investigating whether the bolts holding the panel in place are missing or broken.

Kirby said on CNBC that he believes the Max 9s will be able to fly again soon, but I am disappointed that production challenges remain at Boeing.

In recent years, production errors have sometimes delayed deliveries of Max jets and a larger Boeing plane, the 787. Last year, United received 24 fewer Boeing planes than expected.

United has a standing order for Max 10 jets, a larger version of the Max line. However, that model and a smaller model, the Max 7, are years behind schedule for certification by the Federal Aviation Administration. The grounding of the Max 9 jets is likely to further complicate Boeing’s push to get the new models approved.

Kirby said the Max 10 is at least five years behind schedule and could be pushed further into the future.

I think this is the final straw. The grounding of the Max 9 is probably the straw that broke the camel’s back for us, he told CNBC.

In any case, we are going to build a plan that does not include the Max 10.

Kirby was not specific about which planes the airline might purchase in place of the Max 10, but he noted that there is only one other global manufacturer of such large planes, Boeing’s European rival Airbus.

Without the Max 10, this likely means United will not grow as quickly as it had hoped, Kirby added.

Stan Deal, CEO of Boeing’s commercial aircraft division, apologized for the grounding of the Max 9 and said the company is making changes.

We have let our airline customers down and deeply regret the significant disruption to them, their employees and their passengers,” Deal said in a prepared statement. We are taking action on a comprehensive plan to safely return these aircraft to service and improve our quality and delivery performance.

The shares of United Airlines Holdings Inc. rose 6 percent on Tuesday. After the close of regular trading on Monday, the company said it would lose up to 85 cents per share in the first quarter but earn $9 to $11 per share for all of 2024.

The shares of The Boeing Co. fell less than 1 percent.

First print: January 24, 2024 | 7:03 am IST