Editor’s Comment: Lag times and looking to the future

By May 5, 2020 Featured

It’s now a familiar story as yet another airline has announced that it is delaying the delivery of its Boeing 737 MAX aircraft. United Airlines is to halve the number of MAXs it wants over the next two years. The move is not unexpected for the US carrier. On 3 May, during its first-quarter earnings call, United Airlines’ Chief Financial Officer, Gerry Laderman, said the full-service carrier is planning to emerge from the coronavirus crisis as a much different airline. It’s an all too familiar phrase that has been echoed around the world by other senior airline executives.

United will now receive just 40 737 MAX aircraft from Boeing by the end of 2021, which effectively means the airline is delaying half its order. The airline also confirmed that this is dependent on when FAA regulators approve re-certification. United said it could take 16 aircraft this year and 24 aircraft in 2021.

Boeing has been taking numerous hits on its aircraft orders as airlines can’t hold onto their older aircraft forever and know there is a lag time between ordering new types and delivery dates. Planned goals are being put on hold when the future is uncertain and there’s no quick fix coming along anytime soon.

Like many airlines, CEOs are looking to their government for advice on what they must do in order to meet the new quarantine rules for when international travel resumes under a practical, yet workable plan.