Boeing HQ
It is a relatively quiet day for Boeing headlines, as airlines continue to react to delayed deliveries and Boeing begins its cost-cutting process.
Southwest airlines has reduced its expected MAX deliveries in 2025 from 86 to 73 aircraft. With 44 of them Boeing 737-7 variant that is still not certified, that estimate of 73 may turn out to be considerably overstated, as the FAA has not provided a time frame for the certification of the aircraft. This year, through October, Southwest took delivery of only 20 of the 85 aircraft it expected to receive.
Etihad, based in Abu Dhabi, is now planning a $1 billion retrofit of existing aircraft because of delivery delays. As a customer for the 777-9, that now appears delayed until early 2026, the carrier needs to continue to operate its existing fleet with competitive premium class services that are consistent throughout their fleet. Earlier 777-300ER and 787 models will be retrofit to the same standard as their newly delivered A350s and 787. With seats in short supply, the retrofit program will begin in late 2025 or early 2026.
The Boeing restructuring program has begun, with the first wave of layoff notices being delivered. The SPEEA professional engineering union indicated that 438 of its members have received layoff notices. Other stories report 2,200 plus layoffs in Washington State, as numbers begin to trickle out from Boeing. It is anticipated that 17,000 employees in total will be let go over the next month.
A new cargo carrier has begun operations for Amazon, and 21 Air has completed its first flight using one of 7 Boeing 767-300ERs that were transferred to the operator from Amazon Prime Air. Atlas Air, which formerly operated the aircraft on behalf of Amazon, are being phased out of the Amazon network.
Reports indicate that Lufthansa may be another airline close to an engine change decision for its Boeing 787s on order, moving from the Rolls-Royce Trent 1000 to the GEnx engine. The recent reliability problems with the Rolls-Royce engines are negatively impacting airline flight schedules. Switching engine suppliers indicates this is more than a minor problem or annoyance, but negatively impacting operations and profitability.
Finally, one well known industry analyst estimates that the Boeing recovery will be a ten year process. That is longer than many anticipated and longer than many investors would like to wait. The depth of the problems at Boeing and the 27 years since McDonnell-Douglas took over Boeing with Boeing’s money have established a culture that will be difficult to change.
Links to today’s news follow:
- Southwest Airlines reduces expected MAX deliveries in 2025 – ch-aviation
- Etihad plans $1 billion retrofit amid aircraft delivery delays –Aviation A2Z
- Boeing issues layoff notices to 438 workers as it begins drastic cuts – The Columbian
- 21 Air makes debut cargo flight for Amazon – Freight Waves
- Lufthansa considers GE engine switch on future Boeing 787 Dreamliners – Simply Flying
- Analyst sees Boeing recovery taking 10 years – St. Louis Post-Dispatch
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