Boeing’s 737 MAX-9 jets are heading back to the skies: CEO

Boeing’s 737 MAX-9 airplanes are returning to the skies after a going through a new federal inspection process, CEO Dave Calhoun says.

Calhoun made that statement to investors during an earnings call Wednesday after an Alaska Airlines-operated MAX-9 jet had a side panel blow out in midflight earlier this month.

“Our team has worked diligently to help our customers restore their 737-9 airplanes for service. The FAA (Federal Aviation Administration) approved the detailed inspection protocol last Wednesday,” he said.

“Today, all 737-9 operators are safely returning their airplanes into service.”

0:30 U.S. FAA launches investigation into Boeing after Alaska Airlines door blows off in-flight

Calhoun did not offer a financial or delivery forecast for 2024, stating that the company must focus on delivering quality airplanes.

The Alaska Airlines accident has turned into a full-blown safety and reputational crisis for Boeing, potentially leading to slower jet production and a loss of more narrowbody market share to competitor Airbus.

Boeing said on Wednesday that 737 aircraft were being produced at a previously outlined rate of 38 per month, a level that it plans to maintain after the FAA barred the company from lifting production, while increasing its oversight.

2:11 Alaska Airlines plane had warnings days before blowout, investigators say

Increasing production of 737 MAX jets is key to Boeing’s recovery from a separate safety crisis arising from two fatal crashes in 2018 and 2019, and the industry slump due to the onset of the COVID-19 pandemic.

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“Whatever the specific cause of the accident might turn out to be, an event like this simply must not happen on an airplane,” Calhoun said.

“We simply must be better. Our customers deserve better.”

1:44 Door which flew off Alaska Airlines plane mid-flight found in Oregon backyard

No Canadian airlines operate the 737 MAX-9. Officials on Boeing’s earnings call said 129 737 MAX-9s will be back in the air.

The FAA grounded most MAX-9s after the incident earlier this month, and required airlines to conduct “detailed visual inspections” of door plugs and other components, adjust fasteners and fix any damage they find before putting Max 9s back into service.

Alaska and United Airlines — the only U.S. carriers with Max 9s — have cancelled hundreds of flights due to the accident.

United, which has the most MAX-9s of any other airline, said on Jan. 24 it has already done “preliminary preparations and inspections” of its planes.

United said the process involves removing an inner panel, two rows of seats and a sidewall liner before technicians can open the door plugs. They will inspect the plug and surrounding hardware, fix anything they find amiss, and resecure the panel.

3:53 How grounding Boeing Max jets could impact global travel

In its earnings release, Boeing did not provide an update to its 2025-26 cash flow and MAX production forecast amid lingering industry doubts on whether the planemaker will be able to achieve those targets after the FAA’s unprecedented decision.

Boeing says it lost $30 million in the fourth quarter, but revenue was stronger than expected. Shares were trading more than six per cent higher as of 11:30 am ET Wednesday.

During its investor day in November 2022, Boeing projected free cash flow of about US$10 billion by 2025-2026 and 737 production of 50 per month.

The planemaker, long a symbol of America’s manufacturing prowess, has yet to consistently report positive cash flows as it faced difficulties in raising production in the last two years due to a fractured supply chain and nagging quality issues.

— with files from Reuters and The Associated Press