Alaska Airlines secures bigger discount from Boeing and confirms order for 12 more 737 MAX 9s

Options exercised for deliveries in 2023 and 2024 further enhance the airline's financial and sustainability outlook

Alaska Airlines confirmed today that it is accelerating its fleet growth by exercising options early on 12 Boeing 737 MAX 9 aircraft after securing a larger discount from the plane manufacturer. The option aircraft are now firm commitments for 2023 and 2024. 

Alaska announced a restructured agreement with Boeing in December 2020 to acquire 68 737 MAX 9 aircraft between 2021 to 2024, with options for another 52 deliveries between 2023 and 2026. This year, the airline has exercised 25 of the options, including 13 planes in May. As part of this transaction, Alaska will add 25 options to backfill the ones that have been exercised.

"We are excited to accelerate Alaska's growth, building on our solid financial foundation that enabled us to weather the pandemic," said Nat Pieper, Alaska Airlines senior vice president of fleet, finance and alliances. "These aircraft are a prudent, long-term investment in our business that we can make while simultaneously maintaining our strong balance sheet."

Deliveries	2021	2022	2023	2024	TOTAL
Original Firm Order	12	31	13	12	68
May Option Exercise	-	-	9	4	13
August Option Exercise	-	-	10	2	12
TOTAL	12	31	32	18	93

New 737 MAX 9 for Aeromexico

 New Boeing 737-MAX 9 for Aeromexico on lease from Air Lease Corporation

Leasing giant Air Lease Corporation has delivered one new Boeing 737- MAX 9 aircraft on long-term lease to Aeromexico. This is the first of four new Boeing 737- MAX 9s Aeromexico has committed to lease long-term from ALC.

“ALC is pleased to deliver this new 737-9 aircraft to our long-term customer, Aeromexico, today,” said Steven Udvar-Házy, Executive Chairman of Air Lease Corporation.  “This new technology 737-9 from ALC will play a key role in Aeromexico’s route network and overall fleet operations.” 

Aeromexico is one of Mexico’s leading global airlines has its main hub at Terminal 2 at the Mexico City International Airport. Its destinations network features the United States, Canada, Central America, South America, Asia and Europe. The Group's operating fleet is comprised of over 100 Boeing 737, 787 and Embraer E190 aircraft models. It was also a founding member of the SkyTeam airline alliance which serves in 170 countries by the 19 SkyTeam airline partners. 

The airline is currently battling restrictions imposed for U.S authorities over safety issues which means it won't be able to increase capacity on services into the states for some time to come which may hamper 737 MAX scheduling, where the - 9's were originally destined to go. 

Many in Mexico are angry that the national carrier and its leasing partners are renaming the aircraft the 737-9 in all publicity,  "It is a morally bankrupt decision to mislead the travelling public who rightly distrust the 737 MAX name and aircraft." one aviation correspondent told us on Tuesday.   

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Alaska Airlines confirms order for more 737 MAX jets

An Alaska 737-9 departs Boeing Field. (Boeing Photo)

Alaska Airlines has put its confidence in the Boeing 737 MAX jet and confirmed an order for 23 737 MAX 9 aircraft. This deal was first announced in December 2020 as a commitment but now has been confirmed. It also includes options for 15 more aircraft.

In common with other airlines, Alaska is seeking to drop the MAX title from the aircraft and just refer to them as the 737-9 type, to disassociate the jets from the two fatal crashes that saw the type grounded over safety issues for around two years. 

With this additional confirmation, Alaska Airlines has orders for a total of 120 737 MAX aeroplanes.

Alaska Airlines received its first 737-MAX 9 in January and began revenue service on March 1. Its second 737-9 entered service on March 18, with two additional 737 MAX 9s scheduled to begin revenue service next week. The airline is embarking on a fleet modernization program to further improve the efficiency and sustainability of its operations. The 737-MAX 9 – equipped with new, more fuel-efficient engines and improved aerodynamics – will use 20% less fuel and reduce emissions by 20% per seat compared to older 737 aeroplanes it replaces.

Photo Alaska Airlines 

Photo Alaska Airlines

Photo Boeing

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Alaska Airlines pushing for 1st March operational date for its first Boeing 737 MAX 9 that arrived over the weekend.

The Seattle based U.S carrier Alaska Air has taken delivery of its first Boeing 737-9 MAX aircraft which it plans to put into commercial operations from 1st March. 

The aircraft was flown from Boeing's Delivery Center at Boeing Field in Seattle to the company's hangar at Sea-Tac International Airport by the airlines own pilots and with a small group of Alaska's top leadership on board on 24th January.

"We've eagerly waited for this day. It was a proud moment to board our newest 737 aircraft and fly it home," said Alaska Airlines President Ben Minicucci. "This plane is a significant part of our future. We believe in it, we believe in Boeing and we believe in our employees who will spend the next five weeks in training to ensure we're ready to safely fly our guests."

The Boeing 737 MAX aircraft have been grounded for nearly two years over a series of safety flaws and issues after two deadly crashes involving the model claimed the lives of over 320 people.

Alaska Airlines pinning future operations on Boeing 737 MAX aircraft with restructured arrangement for 68 jets with options on 52 more

The Seattle based Alaska Airlines has confirmed today that it has entered into an agreement with planemaker Boeing over the restructuring the firm's order of the flawed twin jets. 

Alaska Airlines will now take an amazing 68 Boeing 737-9 MAX aircraft with options for an additional 52 jets with a 49% discount on list prices, according to sources at the airline. The new schedule will see 13 aeroplanes arrive during 2021, whilst another 30 to come the year after. During 2023 the company will have a delivery of 13 jets and the remaining 12 aircraft will arrive during 2024.

Brad Tilden, CEO of Alaska Air Group said: "We are extremely proud to be announcing this transformative agreement with Boeing.  We believe in this airplane, we believe in our strong partnership with Boeing, and we believe in the future of Alaska Airlines and the incredible opportunities ahead as we climb our way out of this pandemic. We could not ask for a better partner than Boeing and we are delighted to be standing side by side with them as we work together to get our economy back on its feet."

Alaska Airlines going ahead with 737 MAX delivery

Preparing for the Boeing 737 MAX to safely join 

Alaska Airlines fleet

On November 18, 2020, the Federal Aviation Administration (FAA) certified the Boeing 737 MAX, giving the approval to all airlines, including Alaska, to begin the process of bringing the aircraft back into service. The airline's first aircraft, a MAX 9 model, is currently scheduled for delivery in early 2021 and will begin passenger service in March 2021.

The airlines says that before the MAX is added to the fleet, its team of pilots, maintenance technicians and safety experts will put the plane through its paces – flying more than 19,000 miles and over 50 flight hours to test the aircraft. "We will activate our training programs and make sure our employees are ready. We’ve been closely testing, verifying and implementing all the necessary processes to ensure the MAX aircraft meets our high safety standards." The airline said in a statement,  "At Alaska, safety is always priority number one. If an aircraft is not safe, we won’t fly it."

The 737 MAX was designed with larger, more efficient engines. To help pilots with the handling of the aircraft, Boeing implemented new flight control software called MCAS, or Maneuvering Characteristics Augmentation System. MCAS relied on information from a single sensor to monitor the angle of the plane. In two accidents, the sensor – an ‘angle of attack’ vane – gave incorrect data to MCAS, which caused the system to activate repeatedly.

Boeing has since made key changes to prevent the previous issues from happening again:

Shares fall as Boeing reduces production rates of grounded 737 Max jets

The US plane-maker is adjusting the production rates of the Boeing 737 Max aircraft, dropping from 52 to 42 aircraft each month from the middle of April.  Boeing says that reducing the rate to 42 aircraft a month will ensure production teams will remain employed.

Boeing’s decision to reduce production has hit the share prices of bother Boeing and a number of its suppliers on Monday. Boeing's shares went down in value by about 2.7% while shares in Safran, Meggitt and Melrose all seeing falls between 1% to 2.5%.  

Deliveries of the 737 Max aircraft have been on hold since aviation safety bodies around the world banned the type from flying in their airspace following two fatal crashes in the space of five months.  The last major national air safety board to ground the jet was the FAA from the US who supposedly certified the aircraft safe to fly, however, there was a large amount of self-certification by Boeing regarding its Max variety of 737. 

On Friday 5th April, Boeing CEO Dennis Muilenburg issued a statement saying "safety is our responsibility, and we own it." which many in the industry are considering is the problem, "safety isn't the sole responsibility of the manufacturer, it shouldn't be 'owned' by them, if any organisation should at all that should 'own' safety it should be the regulators. The problem self-certification even for the most simplest of things is that it opens the door to actual or perceived less rigorous checks." Our chief aviation correspondent Jason Shaw said. 

Boeing's CEO responds to Ethiopian Airlines crash announcement

Dennis Muilenburg, the Chairman, President & CEO of  The Boeing Company issued an apology, of sorts, on Thursday, April 4th, in reply to the preliminary report announcement from the Ethiopian Authorities indicated the anti-stall system on its 737 max aircraft was to blame for the crash that killed all onboard.

In the video, the Boeing boss says the tragedies weigh heavily on the hearts and minds of all at Boeing and the firm extends its sympathies to the loved ones of the passengers and crew of those on the two 737 max 8's that crashed. Yet at the same time, it's legal teams have been instructed to fight vigorously all lawsuits filed against the firm for compensation. 

Boeing says it continues to work with the US Federal Aviation Administration and other regulatory agencies worldwide on the development and certification of the MCAS software update and training programme. However, that holds little sway with many in the industry as to a large extent Boeing self-certificated the 737 Max range of aircraft, with the blessings of the FAA. It was treated as just a modification of the forerunning 737 models, rather than that of a new design, which would have had a more rigorous examination and certification programme.  Boeing advises they are "working to demonstrate that we have identified and appropriately addressed all certification requirements and will be submitting for FAA review once completed in the coming weeks. Safety is our first priority, and we will take a thorough and methodical approach to the development and testing of the update to ensure we take the time to get it right."

Some industry commentators are estimating the earliest the 737 Max 8 and 9's will be back in the air will be the Middle of May, whilst others are less optimistic saying the troubled craft will not get the all clear with the new software update until the autumn. 

Read the full statement below.

No current plans for to let the 737 Max jets back in Saudi Arabian skies

News agency Reuters is reporting that Saudi Arabia has no plans to allow Boeing 737 MAX aircraft to operate in the kingdom according to the transport minister,  as state airline flyadeal reconsiders an order for the jets. 

The 737 Max 8 and 9 models have been grounded globally after two fatal crashes with striking similarities within five months of each other.  "There were no 737 MAX flying in the kingdom at the time and there aren’t plans for them to be back in the near future,” minister Nabeel al-Amudi told reporters at an aviation conference in Riyadh. Saudi Arabia will follow the global aviation industry in any recertification of the MAX, Amudi said. 

The local budget airline flyadeal will wait until investigation reports into the two crashes are released before decided if it will continue with an order of up to 50 of the jets, worth $5.9 billion at list prices, according to the US manufacturer.

Garuda set to cancel Boeing 737 Max order....could more follow?

Garuda Indonesia plans is all set to cancel a major order it placed with the US plane manufacturer of the 737 Max jets.

According to various media reports the airline is on the cusp of cancelling an order worth $6 billion - £4.5 billion at list prices for 49 of the troubled 737 Max aircraft. The airline has already received one out of an order of 50 planes placed in 2014.

If the reports are confirmed it would be the first formal cancellation Boeing has received since the two crashes of its latest 737 variety in recent months. of an order for the aircraft.  According to AFP, a Garuda spokesperson said, "We have sent a letter to Boeing requesting that the order be cancelled." 

The spokesperson, Ikhsan Rosan also said,  "The reason is that Garuda passengers in Indonesia have lost trust and no longer have the confidence" in the 737 Max aircraft and it was awaiting a response from the company. Garuda CEO Ari Askhara told news agency Reuters on Friday: "Many passengers told us they were afraid to get on a MAX 8."

The US FAA grounds Boeing 737 Max aircraft...finally.

Photo Boeing

The US Federal Aviation Administration (FAA) has finally called for all Boeing 737 Max 8 and 9 to be grounded in the US following the Ethiopian Airlines and Lion Air crashes in the last six months.

The FAA is virtually the last major national aviation authority in the world to ground the twinjets in the wake of the two disasters. The FAA has stated that all U.S.-registered Boeing 737 MAX aircraft, including the 8 and 9 variants, be grounded as a precautionary measure.

One of the leading operators of the type in the US is American Airlines that flies 24 Max 8 aircraft which operate an average of 85 flights per day between them. The airline once again boasted of its "utmost confidence" in the Boeing 737 Max, despite a number of its pilots expressing unease about continuing to operate the twin-jet.

Norwegian to bill Boeing for costs inqured over the grounding of the 737 Max aircraft

The boss of the low-cost airline Norwegian says he will bill Boeing for the extra costs the airline has to pay following the grounding of the manufactures 737 Max 8 aircraft.

Bjørn Kjos issues a video message today in which he confirms that he will send the bill covering for all the grounded 737 max aircraft to Boeing.  He also said that the firms "first priority is to look after our customers in the best possible way. Our colleagues in Norwegian are working tirelessly to find solutions for passengers who have been affected."

The European Union Aviation Safety Agency (EASA) is the latest to impose a ban on Boeing 737 Max 8 & 9's from its airspace

Icelandair 737 Max taking off
Photo Icelandair

            Following on from the UK's Civil Aviation Authority placing a ban Boeing 737 Max 8's and Max 9's from operating in UK airspace, the European Union Aviation Safety Agency has also suspended the Boeing 737 Max from flying into or over its airspace.

                      China, Indonesia, Singapore, Australia, Germany and France have all instigated bans on the type from operating in their respective airspace, now "to ensure the safety of passengers" The European Union Aviation Safety Agency has followed.

Following the tragic accident of Ethiopian Airlines flight ET302 involving a Boeing 737 MAX 8, the European Union Aviation Safety Agency (EASA) said "As a precautionary measure, EASA has published today an Airworthiness Directive, effective as of 19:00 UTC, suspending all flight operations of all Boeing Model 737-8 MAX and 737-9 MAX aeroplanes in Europe. In addition, EASA has published a Safety Directive, effective as of 19:00 UTC, suspending all commercial flights performed by third-country operators into, within or out of the EU of the above mentioned models.".

The UK puts a halt to Boeing 737 Max operations

Boeing 737 Max 8 of Icelandair                Photo Icelandair

On Tuesday, March 12th, the UK's Civil Aviation Authority banned the Boeing 737 Max 8 aircraft from operating in or out of the UK. Plus as a major blow to the US manufacturer, the UK has also banned the 737 Max 8 and Max 9 from its airspace, which means no airline is allowed to fly the types over the UK.

A spokesperson said, "Our thoughts go out to everyone affected by the tragic incident in Ethiopia on Sunday.

"The UK Civil Aviation Authority has been closely monitoring the situation, however, as we do not currently have sufficient information from the flight data recorder we have, as a precautionary measure, issued instructions to stop any commercial passenger flights from any operator arriving, departing or overflying UK airspace.

"The UK Civil Aviation Authority's safety directive will be in place until further notice.  We remain in close contact with the European Aviation Safety Agency (EASA) and industry regulators globally."

The UK is not the only country to ban the 737 Max aircraft from its airspace, similar bans have been instigated by authorities in Singapore, China, France, Ireland, Germany, Australia, Indonesia and Malaysia.

The ban came into effect from 1300 today and caused a Turkish Airlines flight bound for London on a 737 Max aircraft to turn around and head back for Istanbul.  The holiday giant TUI, which had previously refused to ground its 737 Max fleet saying it would only listen to Boeing, has reluctantly had to ground its fleet.  It assured passengers with flights book on the type, their holidays would continue as normal with the flights being operating by other aircraft.

and follows the refusals by Norwegian and TUI to ground the jets as a precaution.  

Boeing delivered 806 commercial jets in 2018

US Planemaker Boeing delivered 69, 737 aeroplanes in December and set a new annual record of 806 deliveries in 2018, surpassing its previous record of 763 deliveries in 2017. Even as Boeing delivered more jetliners, the company again grew its significant order book with 893 net orders, including 203 aeroplane sales in December.

737 MAX family surpassed 5,000 orders; 777 family exceeded 2,000 orders

The Boeing 737 Max aeroplanes have a 'safety deficiency'........

The Boeing 737 Max aeroplanes have “a potential, significant aviation system safety deficiency” says a leading US pilot union. 

The US Air Line Pilots Association informed the U.S. Federal Aviation Administration and the National Transportation Safety Board that  "the lack of critical safety information being provided to the air carriers and frontline operators is concerning.” The ALPA is the largest US pilots union representing around 61,000 pilots flying for at least 34 airlines in North America is worried about the causes of the crash of the Lion Air Boeing 737 Max last month in Indonesia. In a letter to the authorities, it requested  those working with Boeing “to communicate all relevant information to the operators to ensure the continued safe operation of this aircraft.”

In the last week or so the FAA issued an airworthiness directive about the type which warned operators that erroneous inputs from the aviation anti-stall system’s sensors could lead the aircraft to automatically force its nose to pitch down, regardless of if the autopilot is turned on or off, making it extremely difficult for pilots to regain full control the jet.

The union's letter states “Based on recent reporting about the 737 Max, we are concerned that a potential, significant aviation system safety deficiency exists, and we are writing to ask for your immediate help and assistance in clarifying the issues with respect to the pitch control system of the aircraft,”. The union is also critical of the lack of communication from Boeing regarding the issues, writing that information about “this system was not provided to the frontline airline employees—the flight crews and maintenance technicians - which appears to be a significant information gap.”   

The Indonesian authorities looking into the crash of the Lion Air 737 Max jet that killed all 189 people on board believe the pilots of the aircraft faced an issue that was not addressed in the aircraft’s flight manual. Indeed, the father of one of those killed in the Lion Air crash, Rio Nanda Pratama, has filed a lawsuit against Boeing, alleging it had not adequately warned airlines or its pilots of an unsafe design condition. 

Further emphasising the lack of information provided by Boeing came when major US airline, American, confirmed that it had not been fully aware of some functions of an anti-stall systems on the 737 Max until last week. “We value our partnership with Boeing, but were unaware of some of the functionality of the Maneuvering Characteristics Augmentation System (MCAS) installed on the MAX 8,” an American Airlines spokesperson told the media on Wednesday, November 14th, adding "We must ensure that our pilots are fully trained on procedures and understand key systems on the aircraft they fly.” 

It has been reported that three other operators of the 737 Max variety of aircraft had been unaware of some aspects in the control systems and at least two other incidents of pitching down were being investigated by regulators. 

(Photos Boeing)

Primera's US expansion from Brussels

The low-cost carrier Primera Air is growing its American network, but not from the UK, where it is slowly pulling out services, but from Belgium.

The latest raft of routes will see the carrier fly from Brussels to three top US destinations, starting in spring next year;  The airline is going to be using brand new Boeing 737 Max 9 jets to go to Boston, Newark and Washington from Brussels. 

Primera says fares will start at $149 one way from Boston and Newark, while the Washington flights are a little more at $199 one way for the most basic of flight only tickets and 30 inches of leg room.

United Airlines' First 737 MAX 9 Takes Flight from Houston's George Bush Intercontinental

Today, United Airlines became the first North American carrier to operate the fuel fuel-efficient 737 MAX 9 aircraft. The brand new plane entered service as United flight 686 between United's hub at Houston George Bush Intercontinental Airport and Orlando International Airport in Florida. The MAX is also scheduled to operate flights today between Houston and Anchorage, Alaska and Houston and Austin, Texas.

"The Boeing 737 MAX is a great addition to United's fleet, providing approximately 14 percent fuel efficiency compared to previous 737 generations and an improved customer experience onboard," said Rodney Cox, vice president of United's Houston operation. "As we begin the busy summer travel season, Houston is happy to be home for United's first MAX aircraft, as we launch initial 737 MAX service from here, and later this month, add MAX service on flights from Houston to L.A., Sacramento and Tampa."

United Airlines Takes Delivery of the Fuel Efficient 737 MAX 9

United Airlines announced today that it has taken delivery of its first 737 MAX 9 aircraft from the Boeing Delivery Center in Seattle, WA. The new aircraft, which arrived right after Earth Day, reduced fuel use and CO2 emissions significantly compared with older generation aircraft. In honour of this more eco-friendly aircraft, United has given the MAX a new livery, similar to its fuel-efficient Boeing Dreamliner aircraft, so that employees and customers can easily recognize the plane and its superior fuel efficiency.

United expects to take delivery of two more 737 MAX 9 aircraft this month and will have 10 737 MAX 9 aircraft by the end of 2018. As previously announced, the aircraft will enter United's schedule June 7 with service between the airline's hub at Houston's George Bush Intercontinental Airport and five cities – Anchorage, Alaska; Austin, Texas; Fort Lauderdale, FL; Orlando, FL. and San Diego. The aircraft will operate on additional routes from Houston and Los Angeles International Airport starting June 29.

Boeing Delivers First 737 MAX 9 to Lion Air

The American aircraft maker Boeing and the Lion Air Group today celebrated the very first 737 MAX 9 to be delivered. The airplane will go into service with Thai Lion Air, where its added capacity will help the airline launch several international routes.