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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy the Boeing 737 Max has been such a messBoeing's 737 has been around since the 1960s. There have been many variations of the aircraft but the 737 Max, which debuted in 2017, has encountered problem after problem over the last five years. From two fatal Max 8 crashes in 2018 and 2019 to the more recent incident of a door plug falling off a plane during take off from Portland, Oregon. CNBC explores how the 737 Max crisis unfolded and what the future holds for Boeing's best-selling jet.
Persons: Max Organizations: Boeing, CNBC Locations: Portland , Oregon
Calhoun's total compensation last year rose 45% to $32.8 million, up from $22.6 million in the prior year. The manufacturer is grappling with the fallout of a door plug panel that blew out midair from a 737 Max operated by Alaska Airlines in January. Boeing disclosed the take-home pay, which did not include a 2023 bonus Calhoun declined that was valued at $2.8 million, and executive compensation in a filing on Friday. Calhoun took the helm at Boeing in January 2020 after his predecessor was ousted for his handling of the aftermath of two fatal crashes of the 737 Max. The Justice Department is investigating the Alaska Airlines accident and the Federal Aviation Administration has capped Boeing's 737 Max production until it signs off on Boeing's quality control.
Persons: Dave Calhoun, Dave Calhoun's, Max, Stan Deal, Calhoun, Steve Mollenkopf, aren't Organizations: Capitol, Washington , D.C, Boeing, Alaska Airlines, Justice, Federal Aviation Administration Locations: Washington ,
The fuselage plug area of Alaska Airlines Flight 1282 Boeing 737-9 MAX, which was forced to make an emergency landing with a gap in the fuselage, is seen during its investigation by the National Transportation Safety Board (NTSB) in Portland, Oregon, U.S. January 7, 2024. Boeing paid Alaska Airlines $160 million in compensation in the first quarter for the grounding of the 737 Max 9, according to the airline. Alaska said in a filing Thursday that its first-quarter "results were significantly impacted by Flight 1282 in January and the Boeing 737-9 MAX grounding which extended into February." "Although we did experience some book away following the accident and 737-9 MAX grounding, February and March both finished above our original pre-grounding expectations due to these core improvements," it said. Alaska shares were up more than 5% in morning trading, while Boeing was up 1%, compared with a 0.6% gain in the broader market .
Persons: Boeing's, Boeing didn't Organizations: Alaska Airlines Flight, Boeing, National Transportation Safety Board, Alaska Airlines, Federal Aviation Administration, Max, United Airlines, CNBC Locations: Alaska, Portland , Oregon, U.S
United Airlines is asking pilots to take unpaid time off next month, citing late-arriving aircraft from Boeing , according to a note sent to pilots. It's another example of how Boeing's customers say the manufacturer's production problems and safety crisis are impacting their growth plans. The offer comes after United and other airlines in recent years have clamored for more pilots when the Covid-19 pandemic travel slump ended and demand surged. "Due to recent changes to our Boeing deliveries, the remaining 2024 forecast block hours for United have been significantly reduced," the United chapter of the Air Line Pilots Association, the pilots' union, said in a note to members Friday. United was contracted to receive 43 Boeing 737 Max 8 planes and 34 Max 9 models this year, but now expects to receive 37 and 19, respectively, according to a company filing in February.
Persons: Max, Scott Kirby, Boeing didn't, Dave Calhoun Organizations: Boeing, Air Line Pilots Association, United, CNBC, Max, Federal Aviation Administration, Alaska Airlines
An aerial photo shows Boeing 737 Max airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, on March 21, 2019. Calhoun told CNBC on Monday that the decision to retire was "100%" his own and that he would be involved in finding his successor. "We need someone to fix Boeing," one major airline executive, who wasn't authorized to speak to the media, told CNBC after Boeing announced the management shake-up Monday. "I want somebody who knows how to handle a big, long-cycled business like ours," Calhoun told CNBC in an interview Monday while announcing his departure. Four-year Boeing board member Steve Mollenkopf, an ex-Qualcomm CEO who will take over as independent chairman of the board, will lead the search.
Persons: Dave Calhoun, Max, Larry Kellner, Stan Deal, Calhoun, wasn't, John Plueger, It's, Steve Mollenkopf, Cowen, Cai von Rumohr, here's Organizations: Boeing, Max, Boeing Factory, Monday, CNBC, Air Force One, Alaska Airlines, Air Lease, Airbus, Financial, Qualcomm Locations: Renton , Washington, China
Boeing CEO Dave Calhoun speaks to reporters as he departs from a meeting at the office of Sen. Mark Warner (D-VA) on Capitol Hill January 24, 2024 in Washington, DC. Boeing CEO Dave Calhoun will step down at the end of 2024 in part of a broad management shakeup for the embattled aerospace giant. Chairman of the board Larry Kellner is also resigning and will leave the board at Boeing's annual meeting in May. And Stan Deal, president and CEO of Boeing Commercial Airplanes, is leaving the company effective immediately. Scrutiny intensified after a Jan. 5 accident, when a door plug blew out of a nearly new Boeing 737 Max 9, minutes into an Alaska Airlines flight.
Persons: Dave Calhoun, Sen, Mark Warner, Larry Kellner, Steve Mollenkopf, Stan Deal, Stephanie Pope, Kellner, Calhoun, Dennis Muilenburg Organizations: Capitol, Boeing, Boeing Global Services, Alaska Airlines Locations: Washington , DC
Here's a friendship test: Would you share your frequent flyer miles with your pals? The airline on Thursday started allowing members of its MileagePlus loyalty program to pool their frequent flyer miles and tap into that stash for trips on United. A "pool leader" can pick up to four other family members or friends to participate in the joint account. JetBlue Airways lets up to seven customers pool frequent flyer miles, while Frontier Airlines allows up to eight people to pool miles. "By allowing members of a family to pool their award points together, it increases brand preference across the family ... just like with toothpaste."
Persons: Luc Bondar, United's, Henry Harteveldt Organizations: Airlines, United, JetBlue Airways, Frontier Airlines, Atmosphere Research
A JetBlue Airways plane prepares to take off from the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, on Jan. 31, 2024. The carrier will reduce its departures from Los Angeles International Airport from about 34 a day to 24, focusing on profitable transcontinental routes that include its Mint business class cabin, according to a memo to staff, which was seen by CNBC. Cuts include service from Los Angeles to San Francisco; Seattle; Miami; Las Vegas; Reno, Nevada; and Puerto Vallarta, Mexico. Along with transcontinental flying, JetBlue said it will focus on "bread and butter" routes along the East Coast, and those serving Caribbean vacation destinations. JetBlue is charting its path as a stand-alone airline after a judge blocked its plan to purchase Spirit Airlines in January.
Persons: Dave Jehn, Joanna Geraghty, Carl Icahn Organizations: JetBlue Airways, Fort, Hollywood International, Spirit Airlines, Pratt & Whitney, Airbus, Los Angeles International Airport, CNBC, JetBlue, American Airlines Locations: Fort Lauderdale, Fort Lauderdale , Florida, Los Angeles, San Francisco, Seattle, Miami, Las Vegas ; Reno , Nevada, Puerto Vallarta , Mexico, Bogota, Colombia, Quito, Ecuador, Lima, Peru, Kansas City , Missouri, Austin, Atlanta, Nashville, Salt Lake City, New York, Detroit, East Coast, Northeast
United Airlines CEO Scott Kirby on Monday sought to reassure customers about the carrier's safety after a series of flight problems in recent weeks. In another, a missing panel from the plane was discovered after the older Boeing 737 landed in Oregon on Friday. "Safety is our highest priority and is at the center of everything we do," Kirby said in an email to customers. "Unfortunately, in the past few weeks, our airline has experienced a number of incidents that are reminders of the importance of safety." The string of recent mishaps occurred during heightened scrutiny of the aviation industry after a door plug panel blew off of an Alaska Airlines ' nearly new Boeing 737 Max 9 on Jan. 5.
Persons: Scott Kirby, Kirby Organizations: United, Boeing, Federal Aviation Administration, Alaska Airlines Locations: Japan, San Francisco, Oregon
Al Meer confirmed to CNBC that Qatar Airways is now developing a high-yielding First Class concept for its cabins. Along with preparing its First Class proposal, Qatar Airways is redesigning its premium "Q-Suite" class of seats, and the latest offering is set to debut at the Farnborough International Airshow in July. A Qatar Airways Boeing 777 In New York. Leslie Josephs | CNBCThe new aircraft order proposal follows a major legal dispute between Qatar Airways and Airbus over safety concerns caused by paint degradation. Al Meer also said Qatar Airways would halt Al Baker's plans for a fast "phase-out" of the flagship Airbus A380.
Persons: Badr Mohammed Al Meer, Al Meer, Qatar's, Akbar Al Baker, Leslie Josephs, Max, Al Baker's Organizations: Qatar Airways, Boeing, Airbus, CNBC, International Airport, Farnborough, Qatar, Qatar Airways Boeing, Rival Emirates Locations: Al, China, India, Australia, Japan, Korea, New York
An aerial photo shows Boeing 737 Max airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, on March 21, 2019. Boeing 's latest Max crisis is forcing some of its biggest customers to rethink their growth plans this year — and possibly beyond, several airline CEOs said Tuesday. "Boeing needs to become a better company and the deliveries will follow that," Southwest Airlines CEO Bob Jordan said at a JPMorgan industry conference Tuesday. In January, Kirby said the airline would build a fleet plan without the Max 10 because of the delays. On Friday, United told staff that it would have to pause pilot hiring this spring because new Boeing planes are arriving late, CNBC reported.
Persons: Bob Jordan, Scott Kirby, Max, Kirby, United, Dave Calhoun, Stan Deal, Deal Organizations: Boeing, Max, Boeing Factory, Southwest Airlines, Southwest, JPMorgan, Alaska Airlines, Federal Aviation Administration, Department, United Airlines, FAA, CNBC, Transportation Safety Locations: Renton , Washington, Washington
Boeing handed over 27 airplanes to its customers last month as it continues to struggle with quality-control problems and production delays that have frustrated the CEOs of some of its biggest airline customers. So far this year, Boeing has handed over 54 planes, while Airbus has widened its lead over its main rival, delivering 79 planes in the first two months of 2024. Delayed Boeing planes have been difficult for airline leaders. Southwest Airlines , which flies only Boeing 737s, on Tuesday said it would trim capacity plans this year because of fewer Boeing Max deliveries and that it will have to reevaluate its 2024 financial estimates. Last week American Airlines announced a 260-narrow-body-airplane order split between Boeing, Airbus and Embraer.
Persons: Boeing Max, Max jetliners Organizations: Boeing, Airbus, Southwest Airlines, United Airlines, American Airlines, Embraer
Southwest Airlines said Tuesday that it will have to trim its capacity plans and reevaluate its financial forecasts for the year, citing delivery delays from Boeing , its sole supplier of airplanes. The Dallas-based airline said Boeing informed Southwest's leaders that it should expect 46 Boeing 737 Max 8 planes this year, down from 58. Southwest had expected Boeing to deliver 79 Max planes, including some of the smallest model, the Max 7, which hasn't yet won certification from the Federal Aviation Administration. Because of the delays, Southwest said in a filing that it is "reevaluating all prior full year 2024 guidance, including the expectation for capital spending." Last week, United told staff that it would have to pause pilot hiring this spring because of late-arriving aircraft from Boeing, CNBC reported.
Persons: Max, , United, Boeing didn't Organizations: Southwest Airlines, Boeing, Southwest's, Max, Southwest, Federal Aviation Administration, JPMorgan, Alaska Airlines, CNBC Locations: Dallas
But the budget airline on Tuesday launched a new add-on to get more room at the front of its tightly-packed planes — with no middle seat neighbor. On flights starting April 10, Frontier will offer UpFront Plus in the first two rows of its Airbus planes, where it will block the sale of the middle seat. Those seats will also include four to five inches more legroom compared with most of the seats on the planes, an airline spokeswoman said. Fellow budget airline Spirit offers the "Big Front Seat" in its Airbus cabins. The new Frontier option isn't a new seat, but is instead spaced differently than most of the plane.
Organizations: Airbus, Airlines, Spirit Locations: Delta, United, airfare
United Airlines will pause pilot hiring this spring because of Boeing delivery delays, the latest effect of the plane maker's problems on one of its biggest customers. New hire classes will be paused in May and June and will likely resume in July, Marc Champion, vice president of flight operations, and Kirk Limacher, vice president of flight ops planning and development, told staff Thursday in a memo, which was seen by CNBC. "We wanted to let you know that United will slow the pace of pilot hires this year due to continued new aircraft certification and manufacturing delays at Boeing," they wrote. Bolts appeared to be missing on the plane when it left Boeing's factory, a preliminary investigation found. United's CEO, Scott Kirby, in January said the carrier is making a fleet plan without the Max 10.
Persons: Marc Champion, Kirk Limacher, Boeing Max, Bolts, Max, Scott Kirby, Limacher Organizations: Boeing, CNBC, Alaska Airlines, Federal Aviation Administration
United Airlines is planning to launch flights to Marrakesh, Morocco, and Medellin, Colombia, and ramp up its service to Asia, in the carrier's latest bet that consumers will continue to shell out for trips abroad. The flights from United's Newark, New Jersey, hub to Marrakesh are scheduled to begin Oct. 24 using a Boeing 767-300ER. The airline is also starting year-round service to Cebu, Philippines, from Tokyo's Narita Airport. U.S. airlines have increased their international service coming out of the Covid-19 pandemic, and revenue growth from trips abroad has outpaced domestic sales. United also said it will offer four weekly flights between Shanghai and Los Angeles starting Aug. 29.
Persons: Patrick Quayle, United's, It's Organizations: Airlines, Boeing, Tokyo's, CNBC, Los Angeles, CNBC PRO Locations: Marrakesh, Morocco, Medellin, Colombia, Asia, United's Newark , New Jersey, Cebu, Philippines, U.S, Shanghai, Los, Los Angeles, Hong Kong, San Francisco, Seoul, South Korea, Newark, Porto, Portugal
American Airlines said Monday that 80% of its revenue this year will come from loyalty program members and passengers in premium cabins like business class, up from 70% in 2017. American and other carriers have poured billions of dollars into new cabins, lounges and onboard upgrades to cater to high-spending travelers. American's rival Delta Air Lines has repeatedly said that premium revenue growth has become a bigger share of its overall sales and is growing faster than ticket sales in the coach cabin. American earlier on Monday said it was ordering 260 new Boeing , Airbus and Embraer planes to revamp its fleet and that it would retrofit older Airbus planes to increase the size of their first-class cabins. Analysts polled by LSEG, formerly known as Refinitiv are projecting 2024 earnings per share of $2.56 and revenue of $54.97 billion.
Organizations: Boeing, American Airlines, JFK International, Delta Air Lines, Airbus, Embraer, LSEG Locations: Austin, New York, Manhattan, Fort Worth , Texas
American Airlines flight 718, a Boeing 737 Max, takes of from Miami International Airport on its way to New York on December 29, 2020 in Miami, Florida. American Airlines said Monday that it is ordering 260 new narrow-body jets, including dozens of Boeing's long-delayed 737 Max 10. The order includes 85 of Boeing's 737 Max 10 planes and 85 of the Airbus A321neo, aircraft it says will help it upgauge on domestic and short-haul international routes. American said it would also convert orders for 30 Boeing 737 Max 8 planes, a model that is already a staple of its fleet, into the larger 737 Max 10s. American is planning to grow its first class on some of its narrow-body planes, the carrier also said Monday alongside its first investor day in more than six years.
Persons: Max, Scott Kirby Organizations: American Airlines, Boeing, Miami International Airport, Miami , Florida . American Airlines, Airbus, Embraer, United Airlines, Max Locations: New York, Miami , Florida, Fort Worth , Texas
JetBlue Airways and Spirit Airlines on Monday said they are ending their agreement to merge, weeks after losing a federal antitrust lawsuit that challenged the deal. A federal judge in January blocked JetBlue's attempted takeover of budget carrier Spirit after the Justice Department sued to bar the deal last year. The Justice Department alleged the acquisition would stifle competition in the airline industry and eliminate Spirit as a discount alternative for price-conscious travelers. JetBlue and Spirit appealed the judge's decision a couple of days later, but JetBlue noted the appeal was required under the terms of the merger agreement. Spirit shares tumbled 17% in premarket trading, while shares of JetBlue were up roughly 4%.
Persons: JetBlue's, Joanna Geraghty, Department of Justice's Organizations: JetBlue Airways, Fort, Hollywood International Airport, Spirit Airlines, Justice Department, JetBlue, Spirit, Analysts, Frontier, Department of Locations: Fort Lauderdale, Fort Lauderdale , Florida
Spirit Aerosystems had a market capitalization of $3.3 billion as of Thursday's close. "We do not comment on market speculation," a spokesperson for Spirit Aerosystems told CNBC. Boeing in 2005 spun off operations in Kansas and Oklahoma that became the present-day Spirit Aerosystems. It comes less than two months after a section of a Boeing 737 Max 9 plane blew out during an Alaska Airlines flight. It was the latest and most serious in a host of flaws on the Boeing 737 Max, Boeing's best-selling jet.
Persons: Aerosystems, Spirit Aerosystems, Boeing's, Max Organizations: Spirit AeroSystems Holdings Inc, Boeing, Spirit, CNBC, Airbus, Wall Street, Max, Alaska Airlines, Federal Aviation Administration, National Transportation Safety Board Locations: Wichita , Kansas, U.S, Kansas, Oklahoma, Boeing's Renton , Washington
An aerial photo shows Boeing 737 Max airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, on March 21, 2019. The door plug was removed and reinstalled at Boeing's Renton, Washington 737 Max factory. The FAA is in the middle of an audit of Boeing's 737 production lines. The agency last month said it would halt Boeing's planned ramp-up of 737 Max planes until the regulator is satisfied with quality control on the company's production lines. The report was required by Congress following two crashes in 2018 and 2019 of Boeing 737 Max planes, which killed everyone on board the flights.
Persons: Bolts, Mike Whitaker, Dave Calhoun, Max Organizations: Boeing, Max, Boeing Factory, Federal Aviation Administration, Alaska Airlines, FAA Locations: Renton , Washington, Renton, Washington
United Airlines , American Airlines and JetBlue Airways are among the carriers that have raised the price to check bags this year. Earlier this week, American Airlines raised its checked bag fees for the first time in more than five years and adopted the two-tiered strategy that United, JetBlue and several budget airlines already have. American Airlines previously charged $30 for either service. Why are airlines raising baggage fees? Airlines have argued that higher costs such as labor and fuel, their biggest expenses, mean they had to raise bag fees.
Persons: Scott Olson, Barry Biffle, Biffle Organizations: O'Hare International, Getty, Getty Images Airlines, United Airlines, American Airlines, JetBlue Airways, United, JetBlue, CNBC, Frontier, Transportation, Airlines Locations: Chicago, North America
United Airlines is raising the price to check bags, becoming the latest carrier this year to hike a fee that generated more than $5 billion for airlines in the first nine months of 2023 alone. A second checked bag will cost $50 at the airport, or $45 in advance, up $5 for both options. Earlier this week, American Airlines raised its fee to check a first bag on domestic flights to $35 if purchased in advance and $40 at the airport. A second checked bag will go up from $40 to $45. JetBlue and Alaska Airlines have also raised bag fees this year.
Persons: United Organizations: Airlines, American Airlines, JetBlue, Alaska Airlines, CNBC PRO Locations: North America
A person walks past an unpainted Boeing 737-8 MAX parked at Renton Municipal Airport adjacent to Boeing's factory in Renton, Washington on January 25, 2024. The company's 737 program head, Ed Clark, is leaving the company, Stan Deal, CEO of Boeing's commercial airplane unit, said in memo to employees. "Ed departs with my, and our, deepest gratitude for his many significant contributions over nearly 18 years of dedicated service to Boeing," Deal said. A month after the Alaska Airlines flight, Boeing said misdrilled holes on some Max planes would delay handovers of the aircraft to airlines. The door plug that blew out of the almost brand-new 737 Max 9 used for Alaska Airlines Flight 1282 has already brought increased scrutiny and restrictions from federal regulators.
Persons: Max, Ed Clark, Stan Deal, Katie Ringgold, Deal, Elizabeth Lund, Lund, Ed, it's Organizations: Renton Municipal Airport, Boeing, Alaska Airlines, National Transportation Safety, Federal Aviation Administration, Airbus, CNBC PRO Locations: Renton, Renton , Washington, Alaska, United
An American Airlines plane sits at the gate at Cancun International Airport on May 26, 2023. American Airlines has raised the price to check a bag for the first time in more than five years and said it would limit which travel agency bookings are eligible to earn frequent flyer miles. American Airlines last raised bag fees in September 2018 along with other major airlines. Frequent flyer members with elite status and some American Airlines credit card holders will still receive a complimentary checked bag. Customers who buy basic economy tickets will only earn frequent flyer miles if they book on American Airlines' website.
Persons: airfare Organizations: American Airlines, Cancun International Airport, U.S, Carriers Locations: Cancun, Canada, Caribbean, Mexico, Fort Worth , Texas
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