Edition 43
The last few years have been turbulent for Boeing. I use the word turbulent for a lack of a better word to describe the situation at Boeing. The demise of the whistleblower has added to the complexities. While Boeing navigates from one issue to another and one whistleblower to another, United Airlines – one of the three leading carriers in the United States, signed a Letter of Intent with two lessors to acquire 35 A321neos starting 2026.
United has 350 MAX aircraft on order, which are across the subtypes. However, a delay with the MAX 10 certification and further slippage on when the plane is blessed by the FAA means that United has to look for other options. The airline has converted orders for some MAX 10s to MAX 9s and has reportedly been in discussions to place more orders for the A321neo, for which it had already placed an order earlier (180 aircraft).
Boeing was on a winning spree with the MAX 10 last year, with airlines fully aware that the aircraft is not yet certified and there remain challenges. The further delay now is a byproduct of the incidents with the MAX 9 of Alaska Airlines, where the door blew out and it was later proven that it was not bolted besides the documentation did not exist. All in all, the airlines are now certain that there is no certainty on when the MAX 10 will be certified.
United is headquartered at Chicago, where Boeing is headquartered as well. It now seems that the quarterly loss, lack of ability to expand is hurting United and pinch in quality and delays is now where it hurts and hurts the most – revenue!
Closer home, Akasa Air has placed orders for multiple types of MAX aircraft and has the MAX 8 in its fleet along with Asia’s first MAX 8-200. The airline has said that it too has MAX 10 as part of its order signed at Wings India early this year. What impact will it have on the airline’s growth plans? It has deviated a bit from its initial announcements and is now under the radar. It hasn’t received a new plane in a while, even as it announces new routes and rejigs network. Is this pinching where it hurts? Will this uncertainty lead to Air India Express having a dual fleet of Airbus and Boeing, against the typical LCC mindset but better than twiddling thumbs awaiting new aircraft?
NetworkThoughts 