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UNITED CEO CASTS DOUBT ON 737 MAX 10 ORDER AFTER BOEING'S RECENT PROBLEMS

Published Tue, Jan 23 2024 8:02 AM ESTUpdated An Hour Ago
Leslie Josephs
@lesliejosephs
WATCH LIVE
KEY POINTS
 * United is considering fleet plans without the Boeing 737 Max 10.
 * CEO Scott Kirby expressed frustration with delays and manufacturing issues at
   Boeing.
 * Kirby said the Max 9 grounding after a door plug blew on an Alaska Airlines
   flight is the "straw that broke the camel's back."

In this article

 * UAL
 * BA



United Airlines is weighing fleet plans without the Boeing 737 Max 10 after a
series of delays and most recently, the grounding of a smaller variant of the
plane, the carrier's CEO said Tuesday.

The Max 10 is the largest model of the plane and hasn't yet been certified by
the Federal Aviation Administration.


Continue Reading

United CEO Scott Kirby said the plane is already "best case" about five years
delayed and expressed frustration at Boeing for the most recent manufacturing
problem in which a door plug blew out during an Alaska Airlines 737 Max 9 flight
on Jan. 5, prompting the FAA to ground those planes.

United has 79 of the 737 Max 9 aircraft in its fleet, more than any other
carrier. The ongoing grounding will drive a first-quarter loss, the airline said
Monday while reporting its fourth-quarter earnings.

"I think the Max 9 grounding is probably the straw that broke the camel's back
for us," Kirby said in an interview Tuesday on CNBC's "Squawk Box." "We're going
to at least build a plan that doesn't have the Max 10 in it."

In August 2018, Kirby, then United's president, outlined cabin plans for the
some 100 Max 10s the company had ordered, saying at the time the carrier
expected to fly them in 2020. The planes would help replace some older jets, he
said.


READ MORE CNBC AIRLINE NEWS

 * United CEO casts doubt on 737 Max 10 order after Boeing's recent problems
 * United Airlines forecasts first-quarter loss due to Boeing 737 Max 9
   grounding
 * JetBlue-Spirit antitrust ruling doesn't spell doom for Alaska-Hawaiian merger

Last week, Delta Air Lines CEO Ed Bastian told CNBC he is confident moving
forward with his airline's order of Boeing Max 10s.



Boeing didn't comment Tuesday on the Max 10, but the company's CEO of commercial
airplanes, Stan Deal, said in a statement it is "taking action on a
comprehensive plan to bring [737 Max 9] airplanes safely back to service and to
improve our quality and delivery performance. We will follow the lead of the FAA
and support our customers every step of the way."

The company is scheduled to report quarterly results on Jan. 31.

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In this article

 * UAL
 * BA

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