Key Takeaways
- A group of airline CEOs has demanded a sit-down meeting directly with Boeing Co.’s board of directors, according to a Wall Street Journal report.
- The airline chiefs reportedly want to express concern over a January incident in which a 737-9 MAX operated by Alaska Airlines lost part of its fuselage midflight, as well as subsequent Boeing production problems.
- Boeing has offered to send Chairman Larry Kellner and other board members to meet as soon as next week, but Chief Executive David Calhoun isn’t expected to attend, the report says.
A group of airline bosses reportedly has demanded a sit-down meeting directly with board directors from aircraft maker Boeing Co. (BA) amid mounting safety concerns and production problems.
The Wall Street Journal on Thursday reported that Boeing offered to send Chairman Larry Kellner and other board members to meet with some of its customers as soon as next week; Chief Executive Officer (CEO) David Calhoun isn’t expected to attend but supports the talks.
The unusual request was made following an in-air incident in January in which a Boeing 737 MAX 9’s door panel ripped off during an Alaska Airlines (ALK) flight. That was quickly followed by an investigation by the Federal Aviation Administration (FAA).
Boeing’s safety issues have continued to mount, with the FAA in February flagging issues with de-icing equipment on its 737 MAX and 787 Dreamliner planes, and a LATAM Airlines flight last week from Australia to New Zealand on a Dreamliner plunging in midair, causing injury to 50 people. The National Transportation Safety Board (NTSB) also opened a probe into Boeing and said the company hadn’t turned over records related to the Alaska Airlines incident.
Finance chief Brian West told a Bank of America conference Wednesday that Boeing’s cash burn in the first quarter will be higher than previously expected, at around $4 billion to $4.5 billion. The company, which in January suspended forward guidance for 2024, also has been forced to limit production of its 737 aircraft, leading to frustration among some airline CEOs due to delivery backlogs.
Boeing shares ticked 0.14% higher at $188.04 as of about 1 p.m. ET Thursday but have lost about 23% so this year.