Indian Airlines Brace For Impact After US Halts Boeing 737 Max Production

The decision of the US aviation regulator to restrict an expansion in manufacturing of the controversial Boeing 737 Max aircraft could be bad news for India's airlines. Air India Express, SpiceJet, and Akasa Air have already placed orders for hundreds of variants of the jet.

Boeing is facing intensifying scrutiny over its quality control practices in the aftermath of a near-catastrophic Alaska Airlines flight three weeks ago when a panel blew out mid-air. Fortunately, the aircraft landed safely with only minor injuries to passengers. However, the aftermath has prompted heightened scrutiny of Boeing's manufacturing processes.

That January 5 incident on a Boeing 737 MAX 9 followed months of earlier, smaller problems with the same aircraft.

The Alaska Airlines episode represents the most serious operational problem for Boeing since two crashes on 737 MAX 8 planes in 2018 and 2019 resulted in 346 causalities and led to a lengthy grounding of the jet.

The US aviation regulator, the Federal Aviation Administration, has now ruled that Boeing cannot expand production of the controversial aircraft until it gets its act together

"We will not agree to any request from Boeing for an expansion in production or approve additional production lines for the 737 MAX until we are satisfied that the quality control issues uncovered during this process are resolved," the FAA said in a statement.

This announcement poses a significant challenge for Indian airlines, including Air India Express, SpiceJet, and Akasa Air, which have collectively placed orders for hundreds of variants of the Boeing 737 Max. Air India Express has orders for 181 737 Max aircraft as part of a $70 billion deal signed last year, while Akasa Air and SpiceJet have orders for 204 and 142 Max jets respectively.

India's Directorate General of Civil Aviation (DGCA) has already inspected all Boeing 737 Max aircrafts in service in the country and has raised safety concerns. The exact implications of the FAA's decision on Indian airlines remain uncertain, but it could potentially impact Boeing's plans to establish a new manufacturing line for the 737 Max.