United Airlines CEO says company looking at ‘alternatives’ to Boeing

The CEO of United Airlines said the company is looking at alternatives to Boeing planes as the troubled Max 9 continues to be grounded by the Federal Aviation Administration (FAA) after a door plug blew off an Alaska Airlines flight earlier this month.

The airline is Boeing’s largest customer and has suffered a huge setback ever since Alaska Airlines flight 1282 made an emergency landing in Portland, Oregon on 5 January.

United Airlines, which owns 79 Boeing Max 9s, cancelled hundreds of flights in the aftermath of the incident. On Monday, the company said it expects to lose money because of the shocking incident.

“I’m disappointed,” United boss Scott Kirby said in an interview with CNBC on Tuesday. “I’m disappointed that the manufacturing challenges do keep happening at Boeing. This isn’t new. I’m disappointed in that.”

The FAA has kept the aircraft out of the sky as all of the Boeing Max 9s undergo thorough inspections, which are expected to be completed by the end of the month.

Mr Kirby said he’s confident the planes will be safe once the inspections are done but is now not sure if he sees Boeing in the company’s long-term future.

“I think this is the straw — the Max 9 grounding — that broke the camel’s back for us,” he added. “We’re at least going to build a plan that doesn’t have the Max 10 in it.”

The Max 10 is the latest model of Boeing aircraft. Mr Kirby said Boeing is five years behind its original delivery date of the planes. Furthermore, the aircraft has not yet been certified by the FAA.

“We’ve grown increasingly to believe that best case the Max 10 gets pushed further and further to the right,” he continued, expressing his frustration with the company. “So we’ve already started working on alternative plans.”

When asked by a news commentator if those plans include Airbus, Boeing’s biggest competitor, he said, “I’ll wait and see. Obviously, there’s only one other manufacturer that’s really an option for us.”

He said the company will continue to be the fastest-growing airline in the world, but the progression won’t happen as fast as he’d previously hoped.

Speaking at a company town hall earlier this month, Boeing CEO Dave Calhoun said the organisation would be acknowledging its “mistake” in response to the emergency. Over 100 passengers, including minors and babies, were onboard the Alaska Airlines flight.

Shares of United Airlines stock rose over six per cent on Tuesday, while Boeing’s dropped by nearly two per cent.