‘We’ve Asked Boeing to Stop Building Max 10s’: United Airlines CEO

A United Airlines plane is pushed from the gate at George Bush Intercontinental Airport, in Houston, on Aug. 11, 2023. (David J. Phillip/AP Photo)

United Airlines has asked Boeing to stop manufacturing the 737 Max 10 model airplanes amid concerns that certification could take longer than expected.

“We’ve asked Boeing to stop building Max 10s, which they’ve done, for us, and start building Max 9s,” Scott Kirby, CEO of United Airlines, said during a JPMorgan investor conference on March 12, according to Bloomberg.

“It’s impossible to say when the Max 10 is going to get certified,” he added.

The airline will focus on the Max 10 only when it gets the necessary regulatory clearance to operate, he said.

Mr. Kirby said that United is trying to switch some of its 277 Max 10 orders out for Airbus SE A321s.

“We are in the market for A321s, and if we get a deal where the economics work, we’ll do something,“ he said. ”If we don’t, we won’t and will wind up with more Max 9s.”

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Boeing’s 737 Max is available in four variants—7, 8, 9, and 10—with the Max 10 being the largest and the 7 the smallest. Neither the Max 7 nor the Max 10 has been certified by the U.S. Federal Aviation Administration (FAA). Boeing had designed the Max 10 to compete with the A321.

The company expected the model to sail through the certification timeline, with the first delivery scheduled for 2024. However, a security incident involving the Boeing 737 Max 9 plane changed the schedule.

In January, a Boeing 737 Max 9 was forced to make an emergency landing after a door plug on the aircraft’s fuselage tore off while the plane was flying at 16,000 feet. This caused rapid cabin depressurization. Some passengers were injured in the Alaska Airlines flight.

As a result of the incident, the FAA grounded Max 9 planes and increased scrutiny of manufacturing processes at Boeing.

The FAA recently completed an audit of Boeing and Spirit AeroSystems, the sole 737 fuselage supplier to Boeing. The audit found “multiple instances where the companies allegedly failed to comply with manufacturing quality control requirements.”

“To hold Boeing accountable for its production quality issues, the FAA has halted production expansion of the Boeing 737 MAX, is exploring the use of a third party to conduct independent reviews of quality systems, and will continue its increased onsite presence at Boeing’s facility in Renton, Washington, and Spirit AeroSystems’ facility in Wichita, Kansas,” the FAA stated.

Boeing 737 Max 10’s certification has been delayed indefinitely as the company deals with the heightened scrutiny and cleans up its manufacturing processes.

In addition to the 277 orders, United could buy 200 more Max 10 planes. Mr. Kirby said that Boeing deliveries this year would be “way behind” the forecast number but that he is “glad that’s the case.”

“This is not a 12-month issue, this is a two-decade issue ... I’d rather Boeing do what they need to do, and they are now,” he said.

During an interview with CNBC in late January, Mr. Kirby said he expected the Max 10 to be delayed by five years in the “best case” scenario.

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

Production Issues

In addition to United, other airline operators expect delays in Max 10 deliveries. Speaking to Bloomberg recently, Delta Air Lines CEO Ed Bastian said that Max 10 planes may not arrive until 2027.

“We were already anticipating if it came in ’25, it’d be late in the year,“ he said. ”My guess is it will be another year or two beyond that.”

Boeing 737 planes are facing several issues “that need to be addressed,” and the airline is already in talks with Boeing, he added.

Delta announced plans to buy 100 Max 10 aircraft in July 2022 for $13.5 billion. The airline also has the option to purchase 30 more models.

Boeing is also facing issues with delivering other Max models. In January, Southwest Airlines said it expects only 79 Max aircraft deliveries in 2024, down from 85.

The adjustment was attributed to “Boeing’s ongoing supply chain challenges” and the current status of Boeing 737 Max 7 certification. Southwest said its current capacity plans “do not assume placing the [Max 7] in service this year and is subject to Boeing’s production capability.”

Amid the controversy surrounding the Max aircraft, Boeing recently received a boost after American Airlines placed orders for 110 Max 10 planes. The airline has the option to buy an additional 75 aircraft in the future.

“We deeply appreciate American Airlines’ trust in Boeing and its confidence in the 737 MAX family,“ said Stan Deal, president and CEO of Boeing Commercial Airplanes. ”American’s selection of the 737-10 will provide even greater efficiency, commonality, and flexibility for its global network and operations.”

Meanwhile, Boeing is making changes to its operations following FAA inspections. In a March 12 update, Mr. Deal said the inspectors examined 737 work instructions, monitored mechanics, inspected for defects, and more.

“The vast majority of our audit non-compliances involved not following our approved processes and procedures,” he said.

Boeing has implemented weekly compliance checks for every 737 work area. In addition, the company is auditing all toolboxes and removing boxes that aren’t fully compliant.