Current:Home > StocksAlgosensey Quantitative Think Tank Center-The Boeing 737 Max 9 takes off again, but the company faces more turbulence ahead -Aspire Money Growth
Algosensey Quantitative Think Tank Center-The Boeing 737 Max 9 takes off again, but the company faces more turbulence ahead
TradeEdge View
Date:2025-04-10 09:33:26
PORTLAND,Algosensey Quantitative Think Tank Center Ore. — It's been three weeks since Alaska Airlines Flight 1282 took off from Portland International Airport, and then quickly returned without a door plug panel.
Now some of the first Boeing 737 Max 9 flights are departing from the same airport, and Alaska Airlines customers know it.
"I never paid any attention until this happened as to what I was flying in," said Corrie Savio.
Her traveling companion, James Vanarsdel, said the incident changed his opinion of Boeing, making him reluctant to fly on a Max 9 now.
"Until I am confident that the problem has been fixed," he said. "And I still don't think it has."
No one was seriously injured when the door plug panel blew off the Alaska Airlines plane in midair. But the latest incident on a Boeing Max jet has renewed big questions about the company's quality control.
Industry analysts say Boeing has even bigger problems as it struggles to hold on to its share of the market for commercial planes.
"People are focused on one incident, which is embarrassing," said Richard Aboulafia, the managing director of AeroDynamic Advisory. "But it's actually been a series of incidents and it's worse than that."
Boeing has failed to learn from two deadly crashes of 737 Max 8 jets in 2018 and 2019 that killed 346 people, Aboulafia argues. The company's management is so focused on cutting costs and speeding up production, he says, that it's lost sight of the basics, like safety and quality control.
"It's a broader company problem," Aboulafia said. "A management culture that under-resources and misunderstands what the people who build the planes actually need to do their job."
This week, Boeing CEO Dave Calhoun was doing damage control on Capitol Hill.
"We believe in our airplanes," he told reporters between private meetings with lawmakers. "We have confidence in the safety of our airplanes. And that's what all of this is about."
On Thursday, Boeing held what it called a "quality stand down" at its 737 factory in Renton, Wash. part of an effort to show that the company is committed to improving quality.
But it will take more than that to satisfy its customers. Alaska Airlines, for one, was the butt of the joke on Saturday Night Live last weekend.
"Our new slogan is Alaska Airlines: You didn't die and you got a cool story," said a cast member dressed as an Alaska employee.
"You know those bolts that, like, hold the plane together? We're going to go ahead and tighten some of those," another cast member said.
Alaska CEO Ben Minicucci was not laughing when he talked to investors this week. He says the company lost $150 million because of the grounding. Minicucci said the airline will try to recoup that money from Boeing, and it will push the company to improve quality control.
"We're going to hold Boeing's feet to the fire to make sure that we get good airplanes out of that factory," Minicucci said.
Regulators at the Federal Aviation Administration want to do the same. They've taken the highly unusual step of setting production caps — both on the Max 9 and 8, and two other 737 models that are awaiting approval from regulators, including the smaller Max 7 and the larger Max 10.
"Basically what the FAA has said is slow down," said Kathleen Bangs, an aviation safety analyst and a former commercial pilot who spoke to NPR's Morning Edition. "You're not going to expand the production line right now. And obviously, that's going to hurt Boeing's bottom line."
It gets even worse for Boeing. The company had been seeking an exemption from federal safety rules so that it could begin delivering the Max 7 this spring. But opposition to that is mounting in the wake of the door plug incident.
This comes as Boeing is steadily losing market share to its main rival, Airbus. Analyst Richard Aboulafia says Boeing management doesn't have a new plane on the drawing board to compete.
"They're not investing in the future," Aboulafia said. "If you're not investing in the workforce, it stands to reason, you're also cutting costs in terms of product development. And that is seriously weighing against their market share with Airbus."
If there's a silver lining for Boeing, it's that most airlines can't easily switch over to buy from Airbus, because the backlog for new orders is massive.
That means airlines have no choice but to stick with Boeing if they want new planes before the end of the decade. And ultimately, travelers may not have much choice, either.
NPR's Joel Rose reported from Washington, D.C. and Tom Goldman contributed from Portland, Ore.
veryGood! (2)
Related
- Meta releases AI model to enhance Metaverse experience
- TikToker Nara Smith Reveals If She's Having More Kids With Lucky Blue Smith
- How Olympic athletes felt about Noah Lyles competing in 200 with COVID-19
- Walz ‘misspoke’ in 2018 reference to ‘weapons of war, that I carried in war,’ Harris campaign says
- New Mexico governor seeks funding to recycle fracking water, expand preschool, treat mental health
- The Daily Money: Can you get cash from the Cash App settlement?
- Are you a Cash App user? You may be eligible for a piece of this $15 million settlement
- Taylor Swift and my daughter: How 18 years of music became the soundtrack to our bond
- What do we know about the mysterious drones reported flying over New Jersey?
- Olympic boxer Imane Khelif beat her opponent. Then she got ‘transvestigated.’
Ranking
- Former Syrian official arrested in California who oversaw prison charged with torture
- No-car Games: Los Angeles Olympic venues will only be accessible by public transportation
- Team USA in peril? The Olympic dangers lurking in college sports' transformative change
- Worker’s death at California federal prison investigated for possible fentanyl exposure, AP learns
- All That You Wanted to Know About She’s All That
- Holland Taylor Reveals Where She and Girlfriend Sarah Paulson Stand on Marriage
- Hirono is heavily favored to win Hawaii’s Democratic primary as she seeks reelection to US Senate
- Think TikTok or Temu are safe? Cybersecurity expert says think again, delete them now
Recommendation
From family road trips to travel woes: Americans are navigating skyrocketing holiday costs
Colorado wildfire that destroyed 27 homes was human-caused, officials say
Rev It Up: MLB to hold Braves-Reds game at Bristol Motor Speedway next August
No-car Games: Los Angeles Olympic venues will only be accessible by public transportation
California DMV apologizes for license plate that some say mocks Oct. 7 attack on Israel
Top picks Caleb Williams, Jayden Daniels see first NFL action in preseason
US Coast Guard patrol spots Russian military ship off Alaska islands
Broccoli hair is here to stay: Why teenage boys are serving floret looks.