Southwest Airlines Reduces Boeing Purchases for 2024, Cites Certification Issues

The airline’s decision comes as Boeing is under scrutiny for safety standards
Southwest Airlines Reduces Boeing Purchases for 2024, Cites Certification Issues
Southwest Airlines Boeing 737 lands at Manchester Boston Regional Airport in Manchester, N.H., on June 2, 2023. (Charles Krupa/AP Photo)
Naveen Athrappully
1/26/2024
Updated:
1/26/2024
0:00

Southwest Airlines has reduced its expected Boeing aircraft deliveries for this year, citing issues with the certification of the 737 Max 7 model.

In its earnings report published Thursday, Southwest stated that the airline now plans for “approximately 79 MAX aircraft deliveries in 2024,” a reduction from the originally intended 85 deliveries. The adjustment is attributed to “Boeing’s ongoing supply chain challenges” and the current status of Boeing 737 Max 7 certification. Southwest said that its current capacity plans “do not assume placing the [Max 7] in service this year and is subject to Boeing’s production capability.”

Southwest’s decision to reduce aircraft deliveries from Boeing comes as the plane manufacturer is under intense scrutiny following an incident involving the Boeing 737-9 MAX aircraft earlier this month which led to 171 planes being grounded by the U.S. Federal Aviation Administration (FAA).

Boeing’s 737 Max is available in four variants: 7, 8, 9, and 10, with the Max 10 being the largest and the Max 7 the smallest. Neither the Max 7 nor the Max 10 have been certified by the FAA.

In a recent interview with CNBC, FAA administrator Mike Whitaker said that even before Boeing 737-9 Max’s incident this month, the agency had determined that Max 7 and Max 10 certification would require a more “hands-on approach.” FAA has not set a timeline for certifying these aircraft, he said

“As I prepared for this job and went through the nomination and confirmation and really did a deep dive into what happened with the Max originally, I think the message was extra vigilance,” Mr. Whitaker said.

“So we had already teed up greater visibility in our front office on what these certification programs are, just to have a better understanding of what’s coming. I think that [a] higher level of vigilance is going to remain.”

‘Safety Must Come Before Profit’

Boeing is also facing criticism for seeking a safety exemption for Max 7 certification to facilitate aircraft deliveries. Last month, the company requested an exemption from the FAA regarding safety standards for Max 7, specifically concerning the plane’s engine inlets and anti-ice system.
Anti-icing systems are designed to activate before an aircraft enters icy conditions to avoid the formation of ice. Such systems prevent part of the aircraft engine housing from overheating and breaking off mid-flight. Faulty anti-ice systems can lead to overheating issues.

The anti-ice systems of both existing MAX variants in operation, Max 8 and Max 9, have also raised safety concerns. Last year, the FAA said that Boeing was working to fix the problem. In the meantime, the agency told pilots to limit the use of anti-icing systems to only five minutes when flying in dry conditions.

Otherwise, inlets around the engines can get overheated and the housing can break away, striking the plane. Such an incident took place in 2018 involving an older 737 version of the plane during a Southwest flight, killing a passenger.

Sen. Tammy Duckworth (D-Ill.), chair of the Senate subcommittee on aviation safety, slammed Boeing’s FAA request for a safety exemption. In a Jan. 24 letter to FAA administrator Mr. Whitaker, the senator said she “strongly opposed” the request.

“Boeing does not anticipate it will have a permanent fix for this until 2026. In the meantime, it is asking the FAA to allow the MAX 7 to fly with merely a warning to flight crews to remember to manually turn off the anti-ice system when the aircraft emerges from icy conditions,” she wrote.

“This is a request for the FAA to certify a commercial aircraft with a single point of failure subject to human error with potentially catastrophic consequences.”

Boeing’s prioritization of getting the Max 7 into commercial use while being unable to fix the anti-icing system until 2026 “constitutes a stunning lack of urgency on safety and suggests the company has yet to learn the most basic lesson from its terrible 737 MAX history: safety must come before profit.”

Granting Boeing’s request will only work to lessen Boeing’s incentive to prioritize travel safety over profit, the senator warned.

“FAA should deny Boeing’s petition for an exemption and press the company to accelerate implementation of a mechanical fix to its faulty anti-ice system.”

‘Straw That Broke the Camel’s Back’

The mishap involving the Boeing 737-9 Max aircraft took place on Jan. 5 during an Alaska Airlines flight when a door plug of the plane blew out while flying at 16,000 feet, forcing the aircraft to make an emergency landing.

Inspections conducted by Alaska Airlines and United Airlines found that some of the door plugs of the aircraft model had bolts that had not been tightened enough.

The FAA required that a new “rigorous inspection and maintenance process” for the aircraft be created before the agency returns grounded planes to service.

“All 737-9 MAX aircraft with door plugs will remain grounded pending the FAA’s review and final approval of an inspection and maintenance process that satisfies all FAA safety requirements. Once the FAA approves an inspection and maintenance process, it will be required on every grounded 737-9 MAX before future operation,” the agency said on Jan. 17.

On Wednesday, the FAA said that it has informed Boeing about the agency not planning to grant “any production expansion of the MAX” aircraft in a bid to improve quality control at the company.

FAA’s actions could also impact the demand for Boeing’s Max 10 variant.

In an interview with CNBC this week, United Airlines CEO Scott Kirby said that the Max 10 version could be delayed for around five years in the “best case” scenario. United already has 79 Max 9 aircraft, which have been grounded since the Jan. 5 incident.

“I think the Max 9 grounding is probably the straw that broke the camel’s back for us,” Mr. Kirby said. “We’re going to at least build a plan that doesn’t have the Max 10 in it.”