This week, Boeing CEO Dave Calhoun is scheduled to meet with US senators to address concerns about the 737 MAX 9 grounding, as officials from United Airlines, a longstanding client of Boeing, have expressed worries regarding billions of dollars' worth of orders for MAX 10 jets.
Calhoun will begin holding meetings on Capitol Hill on Wednesday. He is expected to meet with Senators Mark Warner, a Democrat, and Ted Cruz, a Republican, among others, after the mid-air rupture of a cabin panel on a new Alaska Airlines jet. Boeing opted not to respond.
Senator Maria Cantwell, the chair of the Commerce Committee, will also meet with Calhoun. She announced last week that she would convene a hearing following the Federal Aviation Administration's (FAA) decision to ground 171 MAX 9 aircraft. Cantwell's representative said that Boeing had asked for their meeting with Calhoun.
Cantwell and Cruz, the leading Republicans on the committee, had a private briefing on the grounding with National Transportation Safety Board Chairman Jennifer Homendy and FAA Administrator Mike Whitaker last week.
Several legislators on Capitol Hill have inquired about Boeing. In a previously undisclosed letter dated January 17, the company assured Senators Ed Markey, Peter Welch, and JD Vance that it was making efforts to rebuild confidence with both regulators and clients.
CEO Scott Kirby of United Airlines stated on Tuesday that the airline, which has purchased 277 MAX 10 aircraft with possibilities for another 200, will develop a new fleet plan that would exclude a model that is now beset by delivery and regulatory delays.
The FAA grounded the majority of Boeing's MAX 9 aircraft for checks following an Alaska Airlines jet's plug for an unused evacuation door breaking on January 5, resulting in an emergency landing.
Viewers of the industry have been searching for concrete proof that the larger MAX 10, which accounts for over one fifth of outstanding MAX orders, is losing support due to Boeing's problems with the MAX 9 and its legacy of previous MAX security groundings.
Under stress from authorities and clients over quality control problems, Boeing announced that it would hold a quality stand down on Thursday at its Seattle-area facility, where it produces 737 airplanes, stopping manufacturing and shipping operations for a day.
Workers at the Renton and Washington factories will be attending quality workshops during the stand-down. In the upcoming weeks, comparable stand downs will be carried out at all other Boeing commercial manufacturing and fabrication locations, the company announced on Tuesday.
Boeing's shares have decreased by 15% and closed 1.6% lower after the Alaska Airlines incident.
Although the MAX 10 lacks the same door-plug system used in the MAX 9, the grounding has brought up concerns that the incident may stall regulatory approval and distribution of the MAX 10.
CEO Ben Minicucci of Alaska Airlines said the airline discovered some loose bolts on some MAX 9s during the inspection. The FAA has not said when it plans to permit the 737 MAX 9 jets to start flying and is currently analyzing data from inspections of a first batch of 40 aircraft.
MAX 10 postpones
Boeing is relying on the higher-capacity MAX 10 to challenge Airbus's dominant market share after the company's dismal sales of the MAX 9. To do this, it is launching the A321neo during its busiest period of the year.
Analysts believe that in order for Boeing to generate enough cash flow and maintain its roughly 40% market share against Airbus, a full launch of the MAX lineup is critical.
According to United's Kirby, in the ideal situation, MAX 10 deliveries will be five years behind schedule.
Subsequently, he stated that United will just delete the jets from internal plans, not cancel them. Industry insiders say airlines seldom cancel orders because they don't want to lose deposits; instead, they often shift around models or resort to using public pressure to get concessions.
Although Kirby's comments raised concerns about the MAX 10 orders, industry sources said that the airline is also facing a challenge as it competes with rivals to meet the increasing demand.
Airbus has sold out for similar aircraft through around 2030.
GE Confidence
A reset has been advocated by airline executives in private, and some commentators are asking for changes to Boeing's management team.
People with knowledge of the situation said earlier this month that United had grown "incensed" with a supplier with whom it has corporate roots. It was compelled to halt 79 MAX 9 aircraft for which it had sold tickets, and on Monday it issued a warning that the first-quarter results would suffer.
However, Larry Culp, CEO of GE Aerospace, Boeing's biggest engine manufacturer, supported Boeing's leadership.
Culp said that they're an important customer and partner, and that he and Calhoun were in regular communications about a whole range of issues.
When asked if he thought Boeing's leadership could solve its difficulties, Culp replied that he had confidence.