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topicnews · September 13, 2024

This is what the Boeing strike could mean for passengers

This is what the Boeing strike could mean for passengers

Boeing workers began a strike on Friday, the latest unrest in a devastating year for the American aircraft manufacturer.

However, it is unclear whether the work stoppage will have any impact on passengers, although there are fears that it could have a negative impact on air travel next summer.

US airlines that rely heavily on Boeing aircraft include Southwest, United and Alaska Airlines.

Southwest said in a statement that the company’s operations are unlikely to be impacted in the short term by any production delays at Boeing.

“Southwest Airlines took steps earlier this year to address potential supply disruptions,” the airline said. “As a result, we currently have the necessary fleet to meet our upcoming schedules. We continue to be in close communication with Boeing.”

Southwest uses only Boeing 737s – aircraft manufactured in Renton, Washington, one of the sites where members of the International Association of Machinists and Aerospace Workers are currently on strike. Southwest had significantly reduced its delivery target for Boeing aircraft earlier this year.

Boeing workers strike (M. Scott Brauer / Bloomberg via Getty Images)

Workers strike outside the Boeing Co. manufacturing facility in Renton, Washington, on September 13, 2024.

A United spokesman said the airline is working with Boeing to understand the potential impact on the airline’s delivery schedule.

A spokesman for Alaska Airlines did not immediately respond to a request for comment.

Airlines are responsible for maintaining planes once they receive them, and crews will not clear a plane to fly if it is deemed unfit to fly, says Henry Harteveldt, founder and president of Atmosphere Research Group, an aviation industry consulting firm.

“The Boeing strike will likely have very little direct impact on consumers,” Harteveldt told NBC News.

Estimates of how long the strike might last vary widely. The last strike by Boeing engineers in 2008 lasted nearly two months. But in a note to clients, Bank of America analyst Ronald Epstein said the latest strike could last as little as a week.

That’s partly because Boeing is in a particularly weak position, he noted: Its reputation was seriously damaged by the mid-air accident in January in which a door panel burst. The accident led to nationwide flight bans, federal investigations and, ultimately, the downfall of Boeing’s leadership. The FAA continues to have federal agencies monitor Boeing’s production. The company’s stock, which is included in the blue-chip Dow Jones Industrial Average index, has fallen about 40 percent this year.

New CEO Kelly Ortberg had already struck a conciliatory tone toward Boeing workers in the run-up to the strike, Epstein said.

“We believe it is likely that Boeing would have to make further concessions and move closer to the IAM’s original proposal,” Epstein wrote.

Boeing acknowledged in a statement that members of the International Association of Machinists found the company’s offer “unacceptable.”

“We remain committed to rebuilding our relationships with our employees and the union, and we are ready to return to the bargaining table to reach a new agreement.”

Company executives warned that the strike could “jeopardize” the company’s recovery from recent scandals and quality problems.

A White House official said the Biden administration is in contact with Boeing and the engineers.

“We encourage them to negotiate in good faith toward an agreement that gives employees the benefits they deserve and strengthens the company,” the official said.

The strike had been widely expected, despite pressure from union leaders to negotiate a last-minute deal. Rank-and-file members of the 33,000 employees who make up the strike group said recent layoffs, the decision to move some production to Boeing’s nonunion plant in South Carolina and the pursuit of even better wages and protections drove workers to strike. Boeing had promised as part of the tentative agreement to build its next commercial jetliner in the Seattle area.

Boeing appeared to have already drawn up contingency plans ahead of the strike vote: Reuters reported on Tuesday that the company had informed its suppliers that it was postponing a key production milestone for its 737 MAX by six months.

If the strike drags on, major airlines may not be able to meet capacity needs for next year’s summer travel season, Harteveldt said.

“If this strike drags on, depending on how many planes Boeing can deliver, the airlines could find themselves with far fewer new planes by next summer’s peak season—and that could definitely impact the number of flights and destinations available,” he said.[Boeing}candeliverairlinesmayfindthemselveswithfarfewernewplanesbynextsummer’sseasonwhichispeakseason—andthatcoulddefinitelyimpactthenumberofflightsanddestinationsavailable”hesaid[Boeing}candeliverairlinesmayfindthemselveswithfarfewernewplanesbynextsummer’sseasonwhichispeakseason—andthatcoulddefinitelyimpactthenumberofflightsanddestinationsavailable”hesaid