Alaska Airlines Group, Inc ALK CEO, Ben Minicucci, has recently disclosed that internal inspections have brought to light a significant number of loose bolts on their 737 Max 9 aircraft, manufactured by The Boeing Company BA. This revelation follows a near-miss incident earlier this month.
What Happened: The CEO of Alaska Airlines, in an interview with NBC News on Tuesday, expressed his dismay and frustration at the subpar quality control exhibited by Boeing after inspections unveiled numerous loose bolts on their Max 9 aircraft. This development has come after a scare on January 5, when a panel on one of its jets unexpectedly opened mid-flight during a journey with 177 passengers.
“I'm more than frustrated and disappointed,” said Minicucci. “I am angry. This happened to Alaska Airlines. It happened to our guests and happened to our people. And — my demand on Boeing is what are they going to do to improve their quality programs in-house.”
The Federal Aviation Administration (FAA) responded to the incident by grounding all Boeing Max 9 planes and launching a safety investigation. An audit to scrutinize Max 9 production line and its suppliers was also announced to examine their adherence to approved quality procedures. Additionally, FAA has escalated its monitoring of Boeing and its third-party suppliers.
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The episode has instigated skepticism among lawmakers about the sufficiency of Boeing’s quality control systems. Consequently, Alaska Airlines, which operates the largest percentage of Max 9 aircraft among major carriers, had to cancel and rearrange its schedule, impacting thousands of passengers.
Why It Matters: Minicucci said that Alaska was planning to buy Max 10s but the company will take stock of what the “best long-term strategic plan is for Alaska(‘s) fleet mix,” according to NBC News.
The report noted that Hawaiian Airlines, which Alaska Airlines is in the works to purchase uses planes made by Airbus. “I think we're going to do what's best for Alaska long term, in terms of fleet mix for us. It gives us optionality.”
The terrifying incident on January 5, where a panel on the aircraft blew out in mid-air, led to the grounding of over 170 Boeing 737 Max 9s. Passengers on board Alaska Airlines flight 1282 recounted a horrifying experience when an emergency exit-sized hole suddenly appeared mid-flight, causing rapid decompression and chaos inside the cabin. As a result, a class-action lawsuit was filed against Boeing for the incident, describing it as a “waking nightmare.”
Boeing has expressed sincere regret for the disruption to their airline customers and promised to execute a comprehensive plan to return the planes to service safely. Minicucci has emphasized that the onus is now on Boeing to exhibit improvements in its quality control, while Alaska Airlines is implementing additional oversight on Boeing’s production line.
Price Action: On Tuesday, Boeing shares closed 1.6% lower in regular trading at $211.50 and fell another 1.14% in the after-hours session. On the same day, Alaska Airlines shares rose 2.87% to $35.83 and gained 0.08% in the after-hours trading, according to data from Benzinga Pro.
Photo Courtesy: Robin Guess On Shutterstock.com
Photo Courtesy: Paul Weatherman photo.
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