Aviation

American Airlines Set to Announce Narrowbody Aircraft Order with Boeing and Airbus

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A report published by Reuters on Tuesday claims that American Airlines is very close to signing a big contract for about 100 narrowbody aircraft, with Boeing and Airbus SE among the competitors. According to sources, Airbus is probably going to get a few more orders out of this transaction.

The agreement, which could comprise Airbus A321 and Boeing 737 MAX 8 aircraft, is anticipated to be revealed as early as next week during an investor meeting on March 4. The ultimate choice on the aircraft mix is still being made, though, as American Airlines is debating whether to incorporate Boeing’s next 737 MAX 10, even in spite of certification delays.

This development occurs in the midst of competition for Airbus production slots, as United Airlines, a rival airline, has already begun talks with Airbus on a possible large order to replace hundreds of MAX 10 aircraft that United Airlines had previously bought from Boeing.

In a meeting with staff last July, American Airlines‘ CEO, Robert Isom, underlined the need for new narrowbody jets beyond 2027. Reports of the airline in discussions with both Airbus and Boeing for this order first emerged last August. But after a January incident in which a cabin panel blew off an Alaska Airlines 737 MAX jet, creating a new crisis for Boeing, the plans for the airline industry in 2024 were disrupted.

Chief Financial Officer Devon May stated last month that American Airlines was in talks with Boeing, Airbus, and Embraer over the carrier’s goal of securing new aircraft for delivery after 2027. May emphasised that when negotiating, it is crucial to take into account current problems at Boeing.

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Aviation

Boeing Resumes 737 MAX Manufacturing After Seven-Week Strike

In a crucial move for its recovery, Boeing has restarted production of its best-selling 737 MAX jetliner, about a month after a significant seven-week strike involving 33,000 factory workers came to an end.

This marks a key milestone for the planemaker, which has been facing considerable challenges in recent years, including heavy debt and a series of setbacks.

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According to the report from Reuters, Boeing resumed the production of the 737 MAX jetliner last week, a pivotal step as the company aims to meet the growing global demand for air travel. With over 4,200 orders from airlines, Boeing’s ability to get the 737 MAX production line back in motion is vital for its financial recovery.

Although Boeing had previously planned to restart production earlier, the company faced numerous obstacles that delayed this process. Federal Aviation Administration (FAA) head Mike Whitaker told Reuters on Thursday that while Boeing had not yet resumed production, they had plans to restart by the end of the month.

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The road to this point has been rocky for Boeing. Setbacks such as the tragic fatal crashes of the 737 MAX, the COVID-19 pandemic, ongoing supply chain issues, production safety concerns, and increased regulatory scrutiny have all contributed to delays in the company’s efforts to ramp up production.

The seven-week strike, which involved thousands of Boeing’s factory workers, added yet another hurdle. Despite these challenges, production of the 737 MAX officially resumed on Friday, according to one of the anonymous sources.

Boeing, however, declined to comment on the matter. The planemaker is now focused on reaching its goal of producing 56 737 MAX airplanes per month, a target that has been delayed due to the many issues that have beset the company over the past few years.