Boeing Sees Order Rebound with American Airlines Deal for Unapproved 737 Max 10
Boeing, the aerospace giant, experienced a resurgence in commercial jet orders in March, driven primarily by a substantial order from American Airlines for a model awaiting Federal Aviation Administration (FAA) approval to commence passenger flights.
American Airlines finalized orders for 85 units of Boeing’s 737 Max 10, the largest variant of the aircraft, alongside converting previous orders for 30 units of the Max 8 version into additional Max 10 orders. Additionally, American retains options for an additional 75 Max 10s in the future. This sizable order, initially announced a month prior, played a pivotal role in Boeing’s March and first-quarter sales and delivery report released on Tuesday.
Despite American Airlines’ significant commitment, Boeing recorded no other orders for any version of the 737 Max in March. However, the company secured orders for 28 widebody 777 jets during the same period.
The certification process for the Max 10 faced delays following an incident involving a 737 Max 9 operated by Alaska Airlines, which experienced a door plug blowout during a flight in January. Concerns regarding anti-icing equipment on Max engines prompted Boeing to withdraw its request for an FAA waiver, halting the certification process temporarily.
United Airlines CEO Scott Kirby expressed reservations about the Max 10 following the Alaska Air incident, signaling a shift in the airline’s expectations for the aircraft. While United Airlines has yet to cancel its Max 10 orders, Kirby hinted at potential interest in Airbus planes as alternatives.
Boeing’s commercial jet orders experienced a slowdown in January following the Alaska Air incident, leading to its worst month for orders since the onset of the pandemic. While February saw a modest rebound with 15 orders, the figure remained below Boeing’s typical monthly volume.
American Airlines’ order represents a crucial vote of confidence in Boeing amidst ongoing challenges. Despite uncertainties surrounding the Max 10’s certification timeline, pre-certification orders are not uncommon in the aerospace industry.
Boeing’s delivery figures for March showed 24 737 Max jets and five 787 Dreamliners. Production delays, attributed to quality control concerns post-Alaska Air incident, have impacted deliveries, prompting operational adjustments from airline customers such as United Airlines and Southwest Airlines.
