May 14, 2024

Brighton Journal

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Boeing aircraft deliveries decreased during the first quarter amid the safety crisis

Boeing aircraft deliveries decreased during the first quarter amid the safety crisis

Boeing customers are still ordering new planes from the manufacturer, which along with Airbus dominates the large jet market. The company placed orders for 111 new planes last month when it canceled two cancellation orders, 85 of which were for American Airlines' 737 MAX, which the carrier announced in early March.

The latest toll comes after the January 5 accident aboard Alaska Airlines Flight 1282, saving Boeing from disaster. Federal accident investigators said the door plug was missing screws holding it in place. Since the accident, the FAA has inspected Boeing 737 MAX production and banned the plane manufacturer from increasing production of the planes until it signs off on quality control procedures.

Boeing executives said the company is slowing production to improve quality control and avoid so-called travel work, when repairs or other tasks happen out of sequence.

“We're not going to rush or go too fast,” Brian West, Boeing's chief financial officer, said at a Bank of America conference last month. “In fact, we're being intentionally slow in getting this right. We're the ones who made the decision to cap rates on the 737 program to less than 38 per month until we feel we're ready. We'll feel the impact of that over the next few months.”

Delays in plane deliveries have drawn criticism from the CEOs of some of Boeing's biggest airline customers, and in the wake of that, CEO Dave Calhoun announced last month that he would step down by the end of the year. Boeing also replaced its chairman and head of its commercial aircraft unit.

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Alaska Airlines said last week that it received $160 million in compensation from Boeing in the first quarter as a result of the plane being grounded briefly after the accident.

Boeing is scheduled to report first-quarter results and brief investors on April 24.