Alaska Air prioritizes quality, safety of Boeing products over production rate

Alaska Air Group is not concerned about the production rate of Boeing's 737 MAX planes as it is more focused on the quality and safety of the planemaker's jets, a top company executive said on Thursday. The Seattle-based carrier had to ground its MAX 9 fleet for weeks following a mid-air cabin panel blowout on one of its flights in January. The grounding cost the company $162m in Q1, resulting in a quarterly loss. CFO Shane Tackett said Alaska has deployed more of its inspectors at Boeing's factories since the incident to ensure the jetmaker produces the highest quality aircraft that it can confidently fly safely. "We are prioritizing quality and safety first," Tackett told Reuters. "And (production) rate, it just isn't one of our priorities right now." The US FAA has capped the MAX production at 38 jets a month following the Jan. 5 incident. However, Boeing's monthly output is well below that level and in late March fell as low as single digits, Reuters reported this month. The Boeing situation is rippling through the industry, compelling airlines to adjust their fleet plans at a time travel demand is projected to hit record levels. Alaska, which operates an all-Boeing fleet, has also trimmed its growth plans and now expects its 2024 capacity to grow at less than 3% from a year ago. Tackett attributed the revision to the company's expectations of fewer-than-expected aircraft deliveries from Boeing.<br/>