Boeing saw a rebound in commercial jet orders in March, with American Airlines placing a large order for 85 Boeing 737 Max 10 aircraft. This order also included the conversion of previous orders for 30 Max 8 planes into additional Max 10 orders, with options for an additional 75 Max 10s in the future. The order from American Airlines was the only one for the 737 Max in March, along with orders for 28 widebody 777 jets. However, certification of the Max 10 has been delayed due to safety concerns following an incident involving a 737 Max 9 flown by Alaska Airlines.
The delay in certification for the Max 10 was due to concerns about anti-icing equipment on the engines, which would have required Boeing to seek a waiver from the FAA. However, criticism of Boeing’s safety standards in the wake of the Alaska Air incident led to the withdrawal of the waiver request, halting the certification process temporarily. This incident also prompted United Airlines to express doubts about the Max 10 planes it had ordered, with CEO Scott Kirby stating that the airline may consider purchasing planes from Airbus instead.
Boeing had a record month for commercial jet orders in December, but suffered a significant slowdown in orders following the Alaska Air incident in January. While the company reported 15 orders in February, it was still below its normal monthly volume. The order from American Airlines was seen as an important confidence boost for Boeing, especially considering the questions surrounding the Max 10 certification. Boeing also reported a slow delivery rate in March, with only 24 737 Max jets and five 787 Dreamliners delivered.
The slowdown in Boeing’s production has caused issues for airline customers, including United Airlines and Southwest Airlines. United Airlines has frozen pilot hiring and asked some pilots to take unpaid leave due to the lack of deliveries from Boeing. Southwest Airlines has also reduced its hiring plans, bringing on fewer pilots and flight attendants than originally planned due to a decrease in 737 Max deliveries. The decrease in production has been attributed to quality control concerns following the Alaska Air incident.
Overall, Boeing’s commercial jet orders saw a bounce back in March, driven by a large order from American Airlines for the 737 Max 10. However, concerns about the certification process for the Max 10 and quality control issues following the Alaska Air incident have impacted Boeing’s production and delivery rates. The order from American Airlines was an important show of confidence for Boeing following a slowdown in orders earlier in the year. United Airlines and Southwest Airlines have also been affected by the decrease in deliveries, with both airlines making adjustments to their hiring plans as a result.
