(MENAFN) Airlines are facing challenges due to delayed deliveries associated with safety concerns surrounding the Boeing 737 MAX aircraft. Boeing has notified airlines that they can expect fewer 737 MAX aircraft deliveries than initially anticipated this year. Consequently, airlines are being compelled to adjust their schedules, potentially leading to reduced flight frequencies and higher ticket prices during the peak summer travel season.
Both US and European airlines are bracing themselves for a shortfall in short-haul aircraft, which comes as an unwelcome surprise and is expected to result in increased labor costs. Additionally, airlines may need to prolong the service life of older aircraft to compensate for the reduced availability of the 737 MAX planes.
Boeing's decision to lower production rates follows a safety incident in which a door malfunctioned on a 737 MAX flight operated by Alaska Airlines in January. The company's cash reserves were further strained as it revealed a depletion of approximately USD4 billion in cash during the first quarter of the year.
In response to these safety concerns, the Federal Aviation Administration (FAA) has imposed limitations on Boeing's production capacity for the 737 MAX. The regulatory body has capped production at 38 aircraft per month, emphasizing the need for Boeing to prioritize quality improvement measures. Consequently, Boeing's aircraft deliveries have been significantly reduced, with only 24 737 MAX aircraft delivered to customers in March, compared to 52 deliveries during the same period last year. In contrast, Airbus, Boeing's European counterpart, delivered 51 A320 and A320neo aircraft during the same month, further intensifying competition in the narrow-body aircraft segment.
MENAFN28042024000045015682ID1108148198
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.