WestJet faces indefinite delays on dozens of new aircraft deliveries after a panel blowout on a Boeing 737 Max plane last month prompted a halt to greater production at the U.S. aircraft maker.
The Calgary-based carrier bought 42 Boeing 737 Max 10 jetliners in 2022, with options for 22 more 香蕉视频直播� on top of nearly two dozen earlier Max orders still in the pipeline.
The multibillion-dollar deals were slated to bolster WestJet香蕉视频直播檚 fleet by at least 65 planes 香蕉视频直播� 50 of them Max 10s 香蕉视频直播� by 2029 in a move the airline called a 香蕉视频直播済ame-changer香蕉视频直播� that would reduce fuel costs and 香蕉视频直播渦nderpin香蕉视频直播� its growth.
However, the Max 10 has yet to receive final certification and, after the panel emergency, U.S. regulators said they would halt production expansion at Boeing until safety concerns were sufficiently addressed.
The Federal Aviation Administration grounded all 737 Max 9s for inspection and launched a probe after a panel known as a door plug tore away from the fuselage of an Alaska Airlines plane while in flight on Jan. 5, leaving a refrigerator-sized hole in the cabin wall and prompting an emergency landing.
As of Feb. 5, 94 per cent of the 144 Max 9s flown by United Airlines and Alaska Airlines 香蕉视频直播� two-thirds of all Max 9s in operation globally 香蕉视频直播� had been cleared to return to service, according to the FAA.
WestJet said it could handle the production turbulence.
香蕉视频直播淲e continue to work closely with Boeing on all aspects of aircraft delivery and timelines. We believe our order book and fleet planning have the built-in flexibility to support WestJet香蕉视频直播檚 growth plans,香蕉视频直播� spokeswoman Madison Kruger said in an email.
The Max 10 is the largest plane in the latest line of 737s and offers 20 per cent fewer carbon emissions per passenger than the previous generation. Fleet rejuvenation is essential to ensuring efficiency, bringing down costs 香蕉视频直播� jet fuel and labour are airlines香蕉视频直播� two biggest expenses 香蕉视频直播� and showing a commitment to green targets.
香蕉视频直播淭he ability of WestJet to do that is compromised by Boeing,香蕉视频直播� said John Gradek, who teaches aviation management at McGill University.
香蕉视频直播淭he older the fleet becomes, the more expensive and the less efficient it becomes,香蕉视频直播� he said.
香蕉视频直播淚f that airplane isn香蕉视频直播檛 going to see the light of day for years 香蕉视频直播� if ever 香蕉视频直播� because of what香蕉视频直播檚 going on, the plans that WestJet has for fleet renewal are going to be in jeopardy.香蕉视频直播�
The 65 new aircraft ordered by WestJet amount to nearly 40 per cent of its current fleet, according to Airfleets.net. Many of them would likely replace some of the 88 airliners from the previous generation of 737 planes over time.
The list price of the 42 Max 10s ordered in 2022 totalled $7.6 billion, though large purchases typically come with major discounts.
At the time, both Boeing and WestJet stressed the importance of the deal.
香蕉视频直播淭he 737-10 will be a game changer, with one of the lowest costs per seat among mid-range aircraft. This will foster our low-cost positioning and affordability for Canadians,香蕉视频直播� said Stan Deal, who heads Boeing香蕉视频直播檚 commercial airlines division, in a September 2022 statement.
WestJet said then that the planes would 香蕉视频直播渟trengthen the airline香蕉视频直播檚 presence in Western Canada and underpin growth in transcontinental and leisure offerings香蕉视频直播� from Eastern Canada.
The carrier faces challenges beyond delivery delays. A pair of no-frills airlines based in Alberta 香蕉视频直播� Flair Airlines and Lynx Air 香蕉视频直播� continue to compete with WestJet, following its wind-down of budget subsidiary Swoop in October. A new collective agreement with pilots has also raised labour costs for Canada香蕉视频直播檚 second-largest carrier, all as battles for a bigger share of domestic and sunshine destination traffic drag on.
Other Boeing partners are likely to feel the impact of the FAA香蕉视频直播檚 order, which caps 737 production at 38 per month until the regulator is 香蕉视频直播渟atisfied that the quality control issues香蕉视频直播� are resolved. Boeing had initially planned to hike production to 42 per month in 2024.
香蕉视频直播淭he long-term implications of the grounding are potential delivery delays and a further push-out of the Max-10 certification,香蕉视频直播� wrote analyst Savanthi Syth of Raymond James in a note to investors on Jan. 31.
READ ALSO:
READ ALSO:
