FT News Briefing How airlines are handling the Boeing fiasco
5 snips
Jan 26, 2024 Big Tech is under scrutiny as regulators investigate its AI partnerships. Meanwhile, Boeing's ongoing quality issues are causing turmoil in the airline industry, with major U.S. carriers expressing their frustrations and bracing for profit losses. The competitive battle between Boeing and Airbus reinvigorates discussions on aviation safety. In the political arena, voter sentiments are sharply divided ahead of the presidential race, spotlighting the unexpected role of foreign policy in the election discourse.
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Boeing's Troubles
- A mid-air accident on an Alaska Airlines flight led to the grounding of Boeing’s 737 MAX 9 planes.
- This grounding, along with limits on production of all 737 MAX jets, has caused significant disruptions for airlines.
Financial Impact on Boeing and Airlines
- The grounding of Boeing 737 MAX 9s will cost Alaska Airlines an estimated $150 million.
- The FAA's limits on 737 MAX production are hindering Boeing's ability to meet customer demands and cash flow targets.
Airline CEOs' Reactions
- CEOs like Robert Isom of American Airlines and Scott Kirby of United Airlines have expressed frustration with Boeing's quality lapses.
- They warn that their patience is wearing thin, demanding that Boeing improve its performance.