India’s newest airline, Akasa Air, is grappling with delayed plane deliveries from Boeing Co. (NYSE:BA), leading to unrest among executives and idle pilots.
Boeing’s 737 program has faced regulatory scrutiny following a mid-air cabin panel blowout last year and a seven-week workers’ strike, causing delivery delays.
In a private town hall meeting in February, Priya Mehra, Akasa’s chief of strategic acquisitions, referred to Boeing as the “elephant in the room” causing “sleepless nights”. CEO Vinay Dube expressed frustration over the lack of aircraft, stating, “We just don’t have enough aircraft to fly.”
Boeing’s delivery delays have also affected other airlines globally, including U.S. budget carrier Southwest Airlines (NYSE:LUV), which was forced to cut jobs for the first time in its history.
Boeing did not immediately respond to Benzinga’s request for comments.
Why It Matters: The delivery delays by Boeing are not a standalone issue. In April, increased factory inspections by U.S. regulators and a slowdown on the assembly line near Seattle led to a significant decline in the production of Boeing’s 737 MAX jetliners.
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