Boeing Employees went on strike On Friday, the most recent unrest occurred in a devastating 12 months for the American Aircraft manufacturer.
However, it’s unclear whether the work stoppage may 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 an announcement that the corporate's operations are unlikely to be impacted within the short term by any production delays at Boeing.
“Southwest Airlines took steps earlier this year to avoid 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, considered 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 goal for Boeing aircraft earlier this 12 months.
A United spokesman said the airline is working with Boeing to grasp the potential impact on the airline's delivery schedule.
A spokesman for Alaska Airlines didn’t immediately reply to a request for comment.
Airlines are chargeable for maintaining planes once they receive them, and crews is not going to clear a plane to fly whether 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 said. said NBC News.
Estimates of the possible duration of the strike 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 most recent strike could prove to be as short as per week.
This is partly because Boeing is in a very weak position, he noted: Its repute was seriously damaged after the door panel breakage during a flight in January, which led to nationwide flight bans, federal investigations and ultimately the ousting of Boeing's leadership. The FAA Boeing's production continues to be monitored by the federal government. Shares of the corporate, which is a component of the blue-chip Dow Jones Industrial Average index, have fallen by around 40 percent this 12 months.
New CEO Kelly Ortberg had already struck a conciliatory tone toward Boeing employees within 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 an announcement that members of the International Association of Machinists found the corporate'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 corporate's recovery from recent scandals and quality problems.
A White House official said the Biden administration is involved 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 barter a last-minute deal. Rank-and-file members of the 33,000 employees who make up the strike group said recent layoffs, the choice to maneuver some production to Boeing's nonunion plant in South Carolina and the pursuit of even higher wages and protections drove employees to strike. Boeing had promised as a part of the tentative agreement to construct its next industrial jetliner within the Seattle area.
Boeing appeared to have drawn up contingency plans ahead of the strike vote: Reuters reported On Tuesday, the corporate informed its suppliers that a key production milestone for its 737 MAX can be delayed by six months.
If the strike drags on, major airlines may not find a way to fulfill capability needs for next 12 months's summer travel season, Harteveldt said. said.
“If this strike drags on, the airlines could – depending on how many aircraft[Boeing][Boeing}candeliverairlinesmayfindthemselveswithfarfewernewplanesbynextsummer'seasonwhichispeakseason—andthatcoulddefinitelyimpactthenumberofflightsanddestinationsavailable”hesaid[Boeing}candeliverairlinesmayfindthemselveswithfarfewernewplanesbynextsummer’sseasonwhichispeakseason—andthatcoulddefinitelyimpactthenumberofflightsanddestinationsavailable”hesaid
image credit : www.cnbc.com