Boeing, in the wake of the Alaska Airlines incident, is focusing on rebuilding trust with its key customers. Let’s delve into the steps the aerospace giant is taking under its new chairman, Steve Mollenkopf.

Direct Outreach to Airline CEOs

Mollenkopf has taken a proactive approach by directly contacting chief executives of major airlines. This move aims to mend strained relations and address concerns following the blowout incident that damaged Boeing’s reputation.

Fallout from the January Blowout

The blowout incident involving a 737 Max 9 aircraft caused significant damage to Boeing’s standing. This led to increased scrutiny from regulatory authorities, notably the Federal Aviation Administration (FAA), which has restricted Boeing’s production expansion to ensure accountability for quality issues.

Production Challenges and Customer Impact

Boeing’s production of the 737 Max series has faced constraints, impacting deliveries to major airlines. This slowdown has disrupted airlines’ operational plans, forcing adjustments like Southwest Airlines’ hiring pause due to a reduced aircraft delivery forecast for the year.

CEO Engagement and Boeing’s Response

Prior to CEO Dave Calhoun’s impending departure, airline CEOs sought a meeting with Boeing’s board to express their frustrations. However, Mollenkopf opted for direct engagement with key airline executives, including those from Alaska Airlines, Southwest Airlines, American Airlines, and United Airlines, to address grievances without the outgoing CEO’s presence.

Compensation and Financial Remediation

As part of Boeing’s efforts to mitigate fallout, Alaska Airlines disclosed receiving $160 million in compensation from Boeing. This payment is intended to cover lost profits resulting from the blowout incident and subsequent fleet grounding.

Boeing’s proactive steps under Mollenkopf’s leadership underscore its commitment to rebuilding trust, addressing production challenges, and maintaining vital relationships with major customers in the aviation industry.