Business

Boeing offloads uncharged MAX jets as air travel recovers

The faster-than-expected recovery of domestic air travel has helped Boeing find new homes for unclaimed 737 MAX jets that buyers have left or collapsed during a pandemic.

Some airlines buy isolated jets Vaccine-fueled travel rebound in the U.S. And other parts of the world. With this purchase, Chicago-based plane makers are storing about 10 MAX aircraft and needing buyers, people familiar with the matter said. There were about 100 cases in July last year.

A year ago, airlines parked planes in the desert, some permanently Retired belt of their fleet They were prepared for a prolonged recession.Many business travelers haven’t returned home yet, and profitable international routes are still suspended, but domestic air travel On the rise In recent months, US airline executives say.

With the surge in summer travel, US flights are on average 84% full. According to the Transportation Security Administration, more than 2 million people passed through US airports on Friday. This is the last level reached in March 2020. Previous travel rebounds have been shortened by a wave of new infections and restrictions, but airline executives have begun a full-scale recovery and their finances have begun to stabilize.

The airline responded by adding flights, planning to bring back idle crew members, and hiring new pilots and flight attendants.they again Starting to expand their fleet..

Major US carriers such as

United Airlines Holdings Co., Ltd.

And

Alaska Airlines Group Co., Ltd.

One of the recent purchasers of an unbilled MAX plane. Jet is often referred to as the white tail and is an industry term for jets that are not painted in airline colors. The MAX jet in question needs to be repainted with the new owner’s design.

United is an airline Early order for 25MAX jetIncludes planes from Boeing’s production inventory, announced in March, and planes to be produced later. Alaska Airlines spokeswoman said the nine MAX jets secured under the December contract were manufactured for other airlines.

Separately, United is discussing with Boeing the possibility of ordering as many as 150 additional jets, people familiar with the matter said.

Flair Airlines Ltd, a Canadian discount carrier. New entrants such as are also accelerating demand.

Share your thoughts

Boeing, what’s the outlook after the blockade? Join the conversation below.

Flair CEO Stephen Jones said the carrier has added 13 previously unclaimed MAX aircraft to its fleet to grow to capture demand as travel recovers. Said to promote. Flair said he could get the delivery in a few months instead of waiting more than two years after ordering a new plane.

“We can get started very quickly,” Jones said.

Some Boeing customers are likely to face supply constraints this summer, CEO David Calhoun said earlier this month. He described the recovery as “more robust than I imagined.”

Southwest Airlines Co., Ltd.

This week, he said he would fly by August in much the same way as in the same month of 2019. Added 18 new destinations During the pandemic process, including the announcement of a flight to Syracuse, NY this fall.

Southwest Airlines announced on Tuesday that it would increase orders for a new smaller version of the Boeing 737 MAX by 34 next year, accelerating plans announced in March to revamp the entire Boeing fleet.

Boeing’s unclaimed number of MAX aircraft is in flux as airlines in the United States and several other parts of the world are increasing their flights and fleets. Customers usually pay most of the purchase price of an airplane at the time of delivery.

American Airlines returned the Boeing 737 MAX to the air with passengers in late December on a flight from Miami to New York. MAX has had passengers in the US for the first time in almost two years Photo: Marco Bello / Reuters (Video from 12/29/20)

Development is helping Boeing Overcome a pandemic And related economic impacts Two previous 737MAX crashes.. Some customers were able to leave the newly built aircraft without penalty after regulators had grounded the aircraft for nearly two years.

Boeing’s attempt to stop the outflow of cash relies heavily on increased production of MAX jets, which have delivered about 100 aircraft to airlines since December. According to securities filing, there were about 400 MAX jets in total inventory at the end of March. Most of the jets delivered go to US airlines and lining up additional customers for unbilled planes will help achieve the goal of generating cash next year.

A Boeing spokeswoman said the plane manufacturer is grateful to customers for their continued trust in the 737 MAX.

Boeing’s ability to find a MAX Jet home also highlights the aviation industry’s second-speed recovery. High immunization rates in the United States and China helped domestic traffic return to pre-pandemic levels. According to the International Air Transport Association, an industry group, both countries account for two-thirds of the world’s traffic rebounds since last year. On the other hand, most airlines in Europe and Asia have a hard time finding passengers.

Write to Andrew Tanger Andrew.Tangel@wsj.com And alison sydor alison.sider@wsj.com

Copyright © 2020 DowJones & Company, Inc. all rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Boeing offloads uncharged MAX jets as air travel recovers

Source link Boeing offloads uncharged MAX jets as air travel recovers

Back to top button