{"id":22378,"date":"2024-01-08T02:02:02","date_gmt":"2024-01-08T08:02:02","guid":{"rendered":"https:\/\/ustower.net\/?p=22378"},"modified":"2024-01-08T02:02:09","modified_gmt":"2024-01-08T08:02:09","slug":"mid-air-blowout-puts-boeing-back-in-the-hot-seat","status":"publish","type":"post","link":"https:\/\/ustower.net\/?p=22378","title":{"rendered":"Mid-air blowout puts Boeing back in the hot seat"},"content":{"rendered":"\n<p class=\"has-medium-font-size\">WASHINGTON, Jan 7 (Reuters) &#8211; A mid-air blowout has put jetmaker Boeing&nbsp;<a href=\"https:\/\/www.reuters.com\/markets\/companies\/BA.N\"><u>(BA.N)<\/u><\/a>&nbsp;in the exact place investors and management hoped it would avoid &#8211; back in the regulatory crosshairs just as it was awaiting approval of new models of its best-selling MAX jet.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Investigators say it is too early to determine what caused a so-called door plug to fall off from&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/aerospace-defense\/us-safety-board-investigating-alaska-airlines-boeing-737-max-9-emergency-landing-2024-01-06\/\"><u>the side of<\/u><\/a>&nbsp;an aircraft operated by one of Boeing&#8217;s most loyal customers, Alaska Airlines, on Friday with 171 passengers on board.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The Federal Aviation Administration (FAA) said on Sunday that 171 Boeing MAX 9 airplanes BA.N would remain grounded until the agency is convinced they can safely operate.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The mishap comes as Boeing and supplier Spirit AeroSystems&nbsp;<a href=\"https:\/\/www.reuters.com\/markets\/companies\/SPR.N\"><u>(SPR.N)<\/u><\/a>, which made the panel, are grappling with ongoing production setbacks that have hampered recovery from an earlier lengthy 737 MAX safety grounding and wider disruption from the pandemic.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Boeing has been under pressure to expand the MAX portfolio and narrow a gap with rival Airbus&nbsp;<a href=\"https:\/\/www.reuters.com\/markets\/companies\/AIR.PA\"><u>(AIR.PA)<\/u><\/a>, which has extended gains in market share since two Boeing MAX crashes in 2018 and 2019 that killed nearly 350 people and led to the MAX&#8217;s worldwide grounding for 20 months.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The MAX&#8217;s troubled history resulted in sweeping reforms of U.S. airplane regulation in 2020, and the Alaska incident could prompt regulators to take a tougher line on other outstanding issues.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Airlines increasingly want to carry more passengers in single-aisle aircraft to take advantage of increases in performance and range while benefiting from their lower cost.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">After disappointing sales of the MAX 9, Boeing&#8217;s largest narrowbody, the company was betting on its newest proposal, the larger-capacity MAX 10, to cut into runaway sales of Airbus&#8217;s A321neo at the busiest end of the market. Analysts say a full rollout of the MAX line-up is crucial to help Boeing steady or improve its roughly 40% market share and generate enough cash to comfortably ride out the coming decade.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Boeing, saddled with $39 billion in debt, has been reluctant to invest in an all-new plane until engine technology matures in the next decade. Delays to certification of the MAX 10 in particular could put Boeing&#8217;s 2020s-bridging strategy under renewed pressure, analysts said.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Boeing&#8217;s struggles also come under the watchful eye of China, a key market broadly closed to the jetmaker in recent years as MAX safety concerns overlapped with trade tensions. Chinese officials sought updates on the Alaska incident on Saturday, sources said.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Both Boeing and Spirit declined comment.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Since the 737 MAX was grounded in March 2019, Boeing shares have dropped by more than 40% while Airbus shares are up 25%.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The first clue to the fallout will be how regulators treat certification of the smallest and least-sold version, the MAX 7, which is next up for approval, said Jeff Guzzetti, a former U.S. air crash investigator.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The FAA is evaluating&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/aerospace-defense\/faa-has-no-specific-timetable-approve-boeing-737-max-7-administrator-2023-12-19\/\"><u>whether to grant an exemption<\/u><\/a>&nbsp;that would allow the MAX 7 to attain certification before Boeing completes required design changes. The MAX 9 accident could &#8220;swing the pendulum&#8221; toward a rejection, he said.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">&#8220;The FAA needs to be seen as strong and on top of things and strict when it comes to safety,&#8221; Guzzetti said. &#8220;The days of any kind of coziness are over.&#8221;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The FAA said &#8220;safety will determine the timeline&#8221; of ongoing certification projects but declined further comment.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Although it is too early to identify the cause of the blowout, experts said the investigation could rekindle a debate over recent quality problems if the a production issue was the root cause of the MAX 9 panel dislodging itself.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">&#8220;How many production deficiencies and quality escapes do you need before you really start to consider how to wrap your hands around the whole process and cure all of it?&#8221; said Guzzetti.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Although Boeing&#8217;s 737 manufacturing line has evolved, it was never intended to produce 750 aircraft a year, said Michel Merluzeau of AIR Strategic Advisory.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Boeing has introduced robotic systems into 737 manufacturing but is targeting bolder digital reforms in future programs as part of a growing battle over production strategy with Airbus, while still tackling supply chain and labor issues.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Past initiatives that put pressure on suppliers to cut costs, as well as a disconnect between top executives and engineering and manufacturing corps, have added to Boeing&#8217;s difficulties, said Richard Aboulafia of AeroDynamic Advisories, a longstanding critic.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Recent 737 production setbacks include&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/aerospace-defense\/boeing-urges-737-max-inspections-possible-loose-bolt-faa-2023-12-28\/\"><u>loose or missing hardware<\/u><\/a>&nbsp;on the rudder system of two MAX jets,&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/aerospace-defense\/new-boeing-737-max-supplier-defect-delay-aircraft-deliveries-2023-08-23\/\"><u>improperly drilled holes<\/u><\/a>&nbsp;made by Spirit, and the&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/aerospace-defense\/boeing-pauses-deliveries-some-737-maxs-amid-new-supplier-problem-2023-04-13\/\"><u>incorrect attachment of brackets<\/u><\/a>&nbsp;joining the MAX&#8217;s aft fuselage to its tail.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">In February, Boeing was forced to pause 787 Dreamliner deliveries after&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/aerospace-defense\/boeing-delivers-first-787-dreamliner-since-weeks-long-delivery-pause-february-2023-03-16\/\"><u>a data analysis error<\/u><\/a>&nbsp;was found &#8211; a problem Boeing said was unrelated to previous issues that&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/aerospace-defense\/faa-says-it-expects-boeing-resume-787-deliveries-days-2022-08-08\/\"><u>stopped deliveries<\/u><\/a>&nbsp;between 2021 and 2022.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Boeing insists its patience is paying off.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">&#8220;Our production system is poised for steady and efficient increases, but we won&#8217;t push the system too fast and will ensure the supply base is in lockstep with us,&#8221; CEO Dave Calhoun said in October.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><a href=\"https:\/\/www.reuters.com\/business\/aerospace-defense\/mid-air-blowout-puts-boeing-back-hot-seat-2024-01-07\/\">Reuters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WASHINGTON, Jan 7 (Reuters) &#8211; A mid-air blowout has put jetmaker Boeing&nbsp;(BA.N)&nbsp;in the exact place investors and management hoped it would avoid &#8211; back in the regulatory crosshairs just as it was awaiting approval of new models of its best-selling MAX jet. Investigators say it is too early to determine what caused a so-called door [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":22379,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1154],"tags":[25691,25692,3374,4426,9822],"class_list":["post-22378","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-air-blowout","tag-boeing-ba-n","tag-faa","tag-jet","tag-manufacturer"],"_links":{"self":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/22378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22378"}],"version-history":[{"count":1,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/22378\/revisions"}],"predecessor-version":[{"id":22380,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/22378\/revisions\/22380"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/media\/22379"}],"wp:attachment":[{"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}