FILE- In this Feb. 5, 2019. (AP Photo/Ted S. Warren, File)

FILE- In this Feb. 5, 2019. (AP Photo/Ted S. Warren, File)

Southwest grounds Boeing Max jets until August

The news comes as the airline heads into the busy summer season

Southwest Airlines customers relaxing on Thursday evening got an email that may mean their summer vacation could be more stressful and expensive than they planned.

Southwest, the biggest operator of Boeing jets, is removing the grounded 737 Max from its schedule until at least Aug. 5, well past the peak of the summer high season.

Company president Tom Nealon wrote in his email that the airline was taking the Max out of its schedule two months longer than previously planned to reduce the need for last-minute changes during the summer travel season. The decision, he wrote, would make the schedule more reliable.

Unless Boeing can quickly fix software on a flight-control system implicated in two deadly crashes, other airlines are likely to follow Southwest’s example and remove the Max from their schedules for an extended period.

READ MORE: Boeing cutting production rate of troubled 737 Max jet

That, in turn, ratchets up pressure on Boeing to fix its bestselling plane so it can return to flying soon.

Last month, Boeing and federal officials said privately that the company would finish a software fix before the end of March. Instead, it was delayed by an unexpected problem that Boeing hasn’t fully described, and the company is now aiming to complete its work by late April.

CEO Dennis Muilenburg said Boeing pilots have flown 96 test flights totalling 160 hours with the new software and will operate more flights in the coming weeks to prove that the fix works.

When Boeing does complete its work, it must be submitted to the Federal Aviation Administration for approval. Foreign regulators including in Europe and China will then do their own reviews — significant because foreign airlines account for about 85% of Max orders, according to analysts for financial services firm Cowen.

It remains uncertain how willing passengers will be to board the Max after crashes in Indonesia and Ethiopia killed all 346 people on board.

The longer the planes sit on the ground, the more money airlines lose. Southwest already figures that just the first three weeks the Max had been grounded, along with other setbacks, cut first-quarter revenue by $150 million.

Southwest is already cancelling about 90 flights a day because its 34 Max jets have been grounded since mid-March. That’s a small percentage of Southwest’s 4,000 daily flights during summer. Still, unless the airline finds replacement planes quickly — and that can be a complicated process — Southwest will scrap about 10,000 flights that could have carried nearly 1.8 million people between now and early August.

American Airlines doesn’t expect its 24 Max jets to be flying before June 5, and it too is cancelling about 90 flights a day.

United Airlines, with 14 Max planes, says it is shuffling its fleet and mostly covering flights that were scheduled with the Max in mind.

READ MORE: Canada bans Boeing 737 Max 8 plane following fatal Ethiopian crash

Without those planes, travellers will have fewer flights to choose from, and fewer planes to carry passengers whose flights are cancelled for other reasons such as bad weather. There could also be fewer fare sales.

“Travelers who have not already booked their summer reservations may end up paying a slightly higher airfare,” said Henry Harteveldt, a travel-industry analyst with Atmosphere Research Group. “But it’s not going to be the summer from hell.”

Harteveldt said he expects airlines that don’t have Max jets — a list that includes Delta, JetBlue, Alaska and Spirit — will court travellers with price-cutting.

The cost of the Max crisis to Boeing also rises the longer the plane is grounded and jets coming off the assembly line pile up around Seattle.

Airlines in China and Norway have said publicly they want Boeing to compensate them for their grounded planes. While other airlines have kept silent, analysts expect Boeing will make concessions that could total hundreds of millions of dollars.

The Chicago-based company also faces a growing number of lawsuits by families of the crash victims.

Since its launch in 2017, the Max had emerged as Boeing’s bestselling jet. Fewer than 400 have been delivered, but about 4,600 are on order.

Boeing stopped deliveries of the plane shortly after it was grounded, and it announced last week that it was cutting production of 737s from 52 to 42 a month.

The company took no new orders for the 737 Max in March — not even before the March 10 crash of one in Ethiopia — and only 10 in the first three months of the year, down from 112 in the same period last year. The decline could be explained by the fact that many airlines that want the plane had already placed orders.

Boeing hasn’t provided numbers on the financial impact from the Max crisis. Company leaders are expected to do so when they report first-quarter earnings later this month.

———

David Koenig

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Toronto Public Health nurse Lalaine Agarin makes preparations at Toronto’s mass vaccination clinic, Jan. 17, 2021. THE CANADIAN PRESS/Frank Gunn
3 deaths, 234 new cases of COVID-19 in Interior Health over the weekend

One death connected to outbreak at Kamloops’ Royal Inland Hospital, where 20 patients and 28 staff have tested positive

The Williams Lake Seniors Village. (Angie Mindus file photo - Williams Lake Tribune)
COVID-19 outbreak declared over at Williams Lake Seniors Village: Interior Health

IH credited the good work of staff in keeping the outbreak from spreading

Brent and Craig Lelleau of Lebleau Brothers Logging star in Mud Mountain Haulers on Discovery Canada. (Photo submitted)
Mud Mountain Haulers shine light on forest industry

New TV show, featuring Lebeau Brothers Logging and shot in the Cariboo, premieres tonight.

The driver of this truck received minor injuries after it careened off the highway. (Quesnel RCMP Photo)
Semi-truck crashes down 200-foot embankment off Highway 97

The truck also spilled diesel fuel into Cuisson Creek

Crews with Discovery Channel film as an Aggressive Towing driver moves a Grumman S2F Tracker aircraft around a 90-degree turn from its compound and onto the road on Saturday, Jan. 23, 2021. It was the “most difficult” part of the move for the airplane, one organizer said. (Jenna Hauck/ Chilliwack Progress)
VIDEO: Vintage military plane gets towed from Chilliwack to Greater Victoria

Grumman CP-121 Tracker’s eventual home the British Columbia Aviation Museum on Vancouver Island

Kamloops This Week.
48 COVID-19 cases and one death associated with outbreak at Kamloops hospital

One of the 20 patients infected has died, meanwhile 28 staff with COVID-19 are isolating at home

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Rolling seven-day average of cases by B.C. health authority to Jan. 21. Fraser Health in purple, Vancouver Coastal red, Interior Health orange, Northern Health green and Vancouver Island blue. (B.C. Centre for Disease Control)
2nd COVID vaccine doses on hold as B.C. delivery delayed again

New COVID-19 cases slowing in Fraser Health region

Provincial health officer Dr. Bonnie Henry talk about the next steps in B.C.’s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. Two more cases of the COVID-19 strain first identified in South Africa have been diagnosed in British Columbia, bringing the total to three as of Jan. 16.THE CANADIAN PRESS/Chad Hipolito
B.C. now has three cases of South African COVID-19 variant, six of U.K. strain

Both variants are thought to spread faster than earlier strains

Rodney and Ekaterina Baker in an undated photo from social media. The couple has been ticketed and charged under the Yukon’s <em>Civil Emergency Measures Act</em> for breaking isolation requirements in order to sneak into a vaccine clinic and receive Moderna vaccine doses in Beaver Creek. (Facebook/Submitted)
Great Canadian Gaming CEO resigns after being accused of sneaking into Yukon for vaccine

Rod Baker and Ekaterina Baker were charged with two CEMA violations each

Police discovered a makeshift nightclub in a Vancouver apartment on Jan. 23, 2021, and say it wasn’t the first time this month officers have been called to the unit over social gathering concerns. (Phil McLachlan - Capital News)
Doorman of makeshift ‘booze-can’ in Vancouver apartment fined; police look to court order

This marks the fourth complaint about social gatherings inside the apartment in January

A Kelowna couple welcomed their Nooner baby in December. (Flytographer)
Kelowna couple welcomes baby girl from Hotel Zed Nooner campaign

Nicole and Alex will now have 18 years of free stays at the hotel

Kyrell Sopotyk was drafted by the Kamloops Blazers in 2016 and played two seasons with the Western Hockey League club. (Photograph By ALLEN DOUGLAS/KTW)
Kamloops Blazer paralyzed in snowboarding accident sparks fundraiser for family

As of Jan. 24, more than $68,000 had been raised to help Kamloops Blazers’ forward Kyrell Sopotyk

Most Read