Airline CEOs Say Boeing Should Be Held Accountable for Losses

Alaska Airlines Boeing 737 Max 9 at takeoff

As far as week’s go, it’s not been a good one for Boeing.

Over the past several days, executives from multiple airlines have come forward saying that Boeing must be held accountable for the January 5 in-flight emergency that involved a door plug falling off an Alaska Airlines 737 MAX 9 flight.

In the wake of the debacle with Alaska Airlines flight 1282, many other carriers have scrapped plans to include MAX planes in their 2024 line-ups and airline leaders have publicly stated that they’re exploring other options beyond MAX aircraft.

But it’s not just airline executives making headlines. Boeing is facing criticism from all quarters. The Federal Aviation Administration (FAA) is continuing its probe into the plane manufacturer, as is the National Transportation Safety Board (NTSB).

Here’s a closer look at the developments that unfolded this week for Boeing and its MAX aircraft.

Criticism and Calls for Accountability

During a Tuesday interview with CNBC, United Airlines CEO Scott Kirby made clear that the airline intends to begin making a contingency plan that does not involve American aircraft manufacturer Boeing.

Kirby said the manufacturing problems that have grounded 79 Boeing 737 MAX 9 jets is “probably the straw that broke the camel’s back for us,” and that United would have to at least consider other alternatives. The major competitor with Boeing is the European manufacturer Airbus.

Executives at Alaska Airlines also publicly voiced their frustrations this week. In particular, Alaska Airlines CEO Ben Minicucci had harsh words for Boeing after the airline conducted inspections on all of the Boeing 737 MAX 9 in its fleet and found “many” with loose bolts similar to those that led to the door panel flying off Alaska Airlines flight 1282 on January 5 in mid-air.

Alaska Airlines has 65 of the MAX 9 planets in service, which amounts to about 20 percent of its fleet. That reality means the airline has had to cancel between 110 to 150 flights each day while the MAX planes are under review.

‘I’m angry. I’m angry. I’m more than frustrated and disappointed. I am angry,” Minicucci told NBC Nightly News Senior Correspondent Tom Costello during a January 23 interview. “This happened to Alaska Airlines. It happened to our guests and happened to our people. And — my demand on Boeing is what are they going to do to improve their quality programs inhouse. And then in addition, in addition to the FAA oversight that’s going to come on top of this. We’re now putting our own extra oversight on the production line at Boeing.”

Meanwhile, during earnings calls yesterday for the largest U.S. carriers, leaders once again criticized Boeing.

“Boeing needs to get their act together,” Robert Isom, American Airlines CEO, said during the call, according to a report from The Points Guy. “The issues they’ve been dealing with over the recent period of time, but also going back a number of years now, is unacceptable.”

Isom was referring not only to the recent Alaska Airlines incident but also to the deadly crashes that took place in 2018 and 2019 involving 737 MAX planes.

Minicucci also reiterated his harsh sentiments for Boeing during the Thursday analyst call.

“Flight 1282 should never have happened,” Minicucci said.”It’s not acceptable what happened. We’re going to hold [Boeing] accountable, and we’re going to raise the bar on quality.”

Alaska Airlines is anticipating a $150 million loss as a result of the January 5 Boeing MAX disaster.

Ongoing Investigations

In addition to the criticism from airline executives, Boeing and its MAX aircraft are still the subject of inquiries headed up by the NTSB and the Federal Aviation Administration.

Earlier this week, the FAA forced Boeing to halt any further MAX production for the time being.

“We will not agree to any request from Boeing for expansion in production or approve additional production lines for the 737 MAX until we are satisfied that the quality control issues uncovered during the process are revealed,” FAA administrator Michael Whitaker said in a statement Wednesday.

Meanwhile, Boeing’s CEO Dave Calhoun spent much of the week on Capitol Hill answering to lawmakers.

“I made it clear that quality engineering and a commitment to safety always have to be the top priority,” Sen. Maria Cantwell (D-WA), chair of the U.S. Senate Committee on Commerce, said of her meeting with Calhoun, according to a report from The Points Guy.