Boeing is increasingly getting rid of Max jets that have not been accepted

11.06.2021 – 16:08 | Those: Dow Jones Newsw… | Reading time about 3 minutes.

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By Andrew Tangel and Alison Sider

CHICAGO (Dow Jones) The unexpectedly rapid recovery in domestic American air traffic is also having a beneficial effect on aircraft manufacturer Boeing. The Chicago-based company is currently accelerating the process of getting rid of the machines that have not been accepted by customers in the corona pandemic. At the moment there are still 10 aircraft on the dump and are looking for a buyer, as informed circles learned – compared to around 100 aircraft of this type in July last year.

A year ago, airlines had parked their planes in deserts or even permanently shut them down because they were preparing for a protracted slack in air traffic. While many business travelers still do not fly and there is little going on on the lucrative international routes, domestic air traffic in the USA has picked up again in recent months, say executives of the US airlines.

US domestic flights have an average occupancy rate of 84 percent. The number of people who pass security checks at airports every day has recently approached the 2 million mark – a level last reached in March 2020. Airlines’ executives are now more confident that the recovery will last and not be a flash in the pan again.

New aircraft are in demand again

Airlines have responded to demand by offering additional flights, making plans to return retired crews, and hiring new pilots and flight attendants. They are also starting to expand their fleets again.

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United Airlines and Alaska Air are among the youngest buyers of the unconsumed Max aircraft. Because they were designed as White Tails, they have to be repainted with the colors of the new owners. The latest order from United for 25 Max jets included aircraft from Boeing’s inventory as well as specially built aircraft. Alaska Air took over nine Max jets that were originally built for other companies.

Newcomers such as the low-cost airline Flair Airlines from Canada are also generating demand. CEO Stephen Jones called it a godsend to receive 13 machines within months and not have to wait up to two years for them after ordering. “We can get started so very quickly,” said Jones.

As of the summer, some Boeing customers will probably have to struggle with delivery bottlenecks: Boeing CEO David Calhoun described the recovery at the beginning of June as “more robust than I ever imagined”.

The latest development is helping Boeing overcome the financial fallout from the pandemic and two 737-Max crashes that left many dead. Some customers were able to return their newly produced aircraft without penalties after the regulatory authorities revoked the aircraft’s operating license for almost two years.

Collaboration: Doug Cameron

Contact the author :haben.de@dowjones.com

DJG/DJN/rio/sha

END) Dow Jones Newswires

June 11, 2021 10:08 AND ( 14:08 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

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