In response to recent concerns raised by major airline chiefs regarding the Alaska Airlines mid-air emergency and ongoing production issues, discussions are planned to be held with Boeing’s board chair, Larry Kellner. These meetings, however, will not include Boeing CEO David Calhoun. The decision to exclude Calhoun from these discussions comes amidst growing frustration among U.S. airline CEOs over Boeing’s challenges and its leadership under Calhoun.
The group of U.S. airline CEOs sought these meetings with Boeing directors to express their concerns directly, signaling an unusual level of dissatisfaction with the manufacturer’s performance and leadership. The carriers aim to address ongoing delays and quality issues directly with Kellner, who brings prior experience as the CEO of Continental Airlines and is perceived to understand their frustrations.
In the United States, the CEOs of American Airlines, United Airlines, Southwest Airlines, and Alaska Airlines are expected to participate in these discussions with Kellner, along with some large foreign airline customers. While Boeing CEO Dave Calhoun supports these meetings, he will not be present, according to a company official.
The decision to hold these meetings without Calhoun has raised speculation about his future at the company, with some Wall Street analysts viewing it as a potential indicator of his longevity as CEO. Boeing, however, emphasized its commitment to actively listening to its customers at all levels of the company.
While American, United, and Alaska Airlines declined to comment on the matter, Southwest Airlines stated that it maintains ongoing communication with Boeing and will continue to do so. Calhoun, who assumed the role of CEO in 2020 following two fatal 737 MAX 8 crashes, has pledged to address quality issues and prevent incidents like the mid-air emergency experienced by Alaska Airlines from occurring again.
Michael O’Leary, the CEO of Ryanair, Boeing’s largest European customer for the 737 MAX aircraft, expressed frustration over prolonged delivery delays during a meeting with senior company executives in Dublin. The delays in fulfilling orders have become a significant source of concern for airline executives, leading some to reduce routes and explore alternative solutions to meet increasing passenger demand expected during the spring.
Federal Aviation Administration (FAA) chief Michael Whitaker emphasized on Tuesday that Boeing must address safety culture and quality issues before the agency will approve any plans to increase production of the 737 MAX. The FAA took the unprecedented step in late January of preventing Boeing from expanding 737 MAX production following the mid-air emergency experienced by Alaska Airlines.
Whitaker outlined that the FAA will only consider allowing an increase in production rates once Boeing demonstrates a safe and effective quality system. He assured that the FAA has the necessary tools to hold Boeing accountable and will not hesitate to use them. Currently, Boeing is permitted to produce up to 38 737 planes per month, although the actual production rate is lower.
Boeing’s Chief Financial Officer, Brian West, acknowledged the decision to limit production rates on the 737 program and anticipated feeling the impact of this decision in the coming months.
In addition to regulatory challenges, Boeing faces further scrutiny as the Justice Department has initiated a criminal investigation into the January incident involving a MAX 9 cabin panel blowout. The National Transportation Safety Board has indicated that the aircraft involved in the incident was missing four critical bolts, raising questions about maintenance and safety procedures.