Aviation

United Airlines Orders Boeing to Cease MAX 10 Production

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With the backdrop of increasing uncertainties regarding the certification timeline of the Boeing 737 MAX 10 aircraft, United Airlines has instructed Boeing to redirect its production efforts towards the MAX 9 model.

This decision, communicated by United’s CEO Scott Kirby during a recent JPMorgan investor conference on March 12, 2024, reflects the airline’s adaptive response to the changing landscape of aircraft certification and production challenges. As reported by Bloomberg.

Kirby stated that United Airlines has asked Boeing to halt the construction of MAX 10s for their orders and prioritize the production of MAX 9 aircraft instead. The rationale behind this directive stems from the solid uncertainty surrounding the MAX 10’s certification timeline, exacerbated by recent detrimental incidents in Boeing’s production processes.

United Airlines’ directive marks a significant shift for Boeing, particularly in the wake of several setbacks, notably the Alaska Airlines case involving a door plug blowout on a Boeing 737 Max 9 aircraft. This incident has intensified scrutiny on Boeing’s certification procedures and manufacturing standards, further clouding the prospects of obtaining timely certification for the MAX 10 model. Consequently, United Airlines finds it imperative to reconsider its procurement strategy in light of these developments.

United Airlines currently holds a substantial order backlog for the Boeing 737 MAX 10, comprising 277 aircraft on order and an additional 200 options. However, given the uncertainties surrounding the MAX 10’s certification timeline, the airline is exploring alternative options, including the possibility of transitioning some of its MAX 10 orders to the Airbus A321.

Kirby’s acknowledgment of United Airlines’ interest in the Airbus A321 underscores the airline’s cautious approach to the MAX 10 certification process and the need for flexibility and responsiveness in its fleet planning. While considering the A321 as a potential alternative, Kirby emphasized the importance of securing economically viable deals in any potential agreements with Airbus.

Internally, Boeing has taken steps to address quality control issues and enhance compliance with regulatory standards. Following a comprehensive six-week audit of Boeing’s 737 Max manufacturing processes by the Federal Aviation Administration (FAA).

As Boeing grapples with regulatory scrutiny and production constraints, United Airlines’ decision to shift focus towards the MAX 9 model highlights the aviation industry’s need for adaptability and responsiveness amid evolving dynamics and uncertainties.

Aviation

Aeroflot Buys Used Planes for Spare Parts Amid Sanctions

In the face of ongoing Western sanctions that have severely impacted Russia’s aviation industry, Aeroflot, the country’s largest airline, has devised a strategic plan to bolster its fleet’s spare parts inventory.

The airline is set to acquire five Boeing 737-800BCF freighters from Atran Airlines, a move that will allow it to dismantle the aircraft for critical components. The planes, which will be transferred to Aeroflot’s low-cost subsidiary Pobeda, will not be converted into passenger jets but instead will be stripped for valuable parts to support existing operations.

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Aeroflot’s plan to purchase these Boeing 737-800BCF freighters comes as part of a broader strategy to mitigate the effects of Western sanctions, which have crippled the Russian aviation sector. With the sanctions restricting access to essential aircraft parts and spare components, Aeroflot is exploring alternative ways to maintain and repair its fleet.

Instead of converting the freighters from cargo to passenger planes, a process deemed “unreasonably expensive” under current sanctions, the airline intends to focus on extracting high-value components such as engines, landing gear, avionics, and other essential systems.

The deal will be structured in a way that allows Aeroflot to indirectly purchase the freighters through an insurance settlement with the aircraft’s lessor, AerCap.

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The Russian government’s insurance company will reimburse the aircraft’s value, and the planes will then be leased back to local operators. This method circumvents some of the restrictions imposed by international sanctions while ensuring that the airline gains access to the necessary components to support its fleet.

By dismantling the aircraft for spare parts, Aeroflot aims to secure critical resources for the ongoing maintenance of its existing fleet. Components from the Boeing 737-800BCF freighters, such as engines and avionics, are expected to be reused in other aircraft within Aeroflot’s network, ensuring that the airline can keep its operations running smoothly