In the past year, Boeing has grappled with setbacks concerning its flagship aircraft, the 737 MAX, culminating in a significant in-flight safety incident on Alaska Airlines in early January.
Boeing’s initial plans to increase MAX production until 2025 have hit a roadblock, with the Federal Aviation Administration freezing the expansion. This regulatory intervention is expected to further impede Boeing’s already delayed delivery schedule.
While Boeing contends with safety issues, its European competitor Airbus faces a different challenge related to engines produced by Pratt & Whitney, a unit of RTX. Hundreds of Airbus 320neo jets are slated for inspection between 2023 and 2026 due to potential microscopic “contamination” in the engine metals. These inspections, along with necessary fixes, require 250 to 300 days per aircraft, adding to the challenges for airlines looking to capitalize on increased travel demand.
Boeing’s recent difficulties have prompted some of its customers to reconsider their options. Alaska Airlines, traditionally a Boeing customer, is exploring alternatives, considering orders from Airbus, particularly with its impending acquisition of Hawaiian Airlines, a current Airbus supplier.
American Airlines CEO Robert Isom expressed concern about Boeing’s performance, emphasizing the need for reliability and safety in aircraft purchases. However, switching suppliers is a complex process, as airlines must secure a spot in the manufacturer’s order book, which is currently challenging due to full production schedules.
Airbus, despite facing its own production constraints, has seen a surge in orders, receiving a record-breaking 2,094 net new orders in 2023. The company plans to boost A320 production to 75 per month in 2026, responding to increased demand and airlines renewing fleets to meet emission targets.
On the other side of the Atlantic, Boeing continues to grapple with regulatory scrutiny. The 737 MAX series, marred by the Alaska Airlines incident, still awaits certification for the MAX 7 and MAX 10 versions. Boeing, facing supply chain constraints and delays, is adapting schedules and addressing challenges in the wake of the ongoing pandemic.
Both Boeing and Airbus confront persistent pressures, including supply chain constraints and geopolitical challenges impacting critical metal availability. As uncertainties loom, airlines may explore alternatives such as renting jets to meet their operational needs. The aviation industry navigates a complex landscape, balancing safety concerns, regulatory scrutiny, and supply chain challenges in their quest to deliver reliable and efficient air travel solutions.
