Boeing ‘Needs to Get Its Act Together’

American Airlines CEO Robert Isom on Thursday said that Boeing “needs to get its act together,” a day after the company’s MAX 9 jets got the green light to fly once again.

American, which does not fly either the MAX 9 or the 737-900s, is a big Boeing customer. It flies 737-800s, 777-200s, and more Boeing aircraft in a fleet that also includes aircraft from Airbus, Bombardier, and Embraer. It also has 20 Boeing MAX 8s on order, and in production, that are expected to be delivered to American over the next year, on schedule despite Boeing’s issues.

Isom, on its Q4 conference call on Thursday, said that American is “going to hold them accountable” for the issues with the MAX 9.

“Boeing needs to get their act together. The issues that they’ve been dealing with over the recent period of time, but also going back a number of years now is unacceptable,” he said. “And no matter who it is, all of Boeing needs to come together and to get back on the right track.”

Isom added that the Federal Aviation Administration’s (FAA) decision to better govern how Boeing is operating, including possibly examining production lines out of the MAX, is “the right approach.”

“I think that’s the right approach. Look, aviation in the United States, aviation throughout the world, it’s the safest form of transportation. We have a commitment to keep it that way, and Boeing has to be part of that equation,” he said.

American has options to continue to grow its fleet with other operators—its 1,500 aircraft includes the world’s largest fleet of Airbus aircraft, one of Boeing’s main competitors. But, for American, and for the whole airline industry in general, to be successful, Boeing is going to have to be part of that, Isom added.

“So, look, we need Boeing to be successful over the long run. They’ve got to get their act together. We need all OEMs to do their job. It’s hard enough running an airline. We need quality products, and that’s what we demand,” he said.

NDC update
American also gave a quick update on its move to NDC during Thursday’s call. According to American, 80% of bookings are now coming through new channels, and 65%-plus is coming through American-owned channels specifically. 

Isom said that the carrier’s goal in 2024 is to get its retail partners to use the new distribution channels, including NDC. 

“we’re going to distribute through the Internet. It’s what our customers demand. It’s how we give them the best fares and the lowest expenses and the best servicing. So at some point, the number becomes 100. And the real issue in 2024 is we want to just continue to transition as many of our retailing partners to use the Internet with us. So ultimately, it becomes 100. We’re really encouraged by what we’ve seen therein,” Isom said.