Airline executives are frustrated with Boeing as its safety crisis has upended their business plans. But in a tight market for large aircraft supplied by two companies, they have little choice but do business with the U.S. plane maker.
Despite some public displays of alarm — United Airlines CEO Scott Kirby flew to France to talk with Airbus as Boeing’s latest crisis erupted — carriers are still negotiating new plane orders, looking to leverage Boeing’s delays to secure better terms.
Boeing’s delivery schedule faces extended delays following a Jan. 5 mid-flight cabin blowout that exposed problems with safety and quality control in its manufacturing processes. But rival Airbus already has a backlog of orders that makes shifting over a non-starter.
Instead, airlines are adopting a variety of strategies to try to stay in the game with Boeing, using orders of one type of plane as a placeholder to possibly take deliveries of a different model. They also are negotiating harder, looking to use production delays to get discounts from the plane maker on new orders and compensation for financial losses.
“Boeing customers don’t have much option but to stick with Boeing whether they like it or not,” said Scott Hamilton, managing director at aviation consulting firm Leeham Company.
WATCH | Is Boeing any safer 5 years after 737 MAX crashes?:
5 years after 737 Max crashes, is Boeing any safer?
1 day ago
Duration 13:46
Five years after a pair of deadly crashes involving Boeing 737 Max-8s and the mass grounding of the jets, the door blew off a Boeing jet mid-flight. CBC’s Susan Ormiston breaks down the aviation giant’s struggle to salvage its reputation after the Max-8 crashes and ongoing questions about the safety of some of its jets.
Kirby has been among the most vocal in expressing frustrations with Boeing. He met with Airbus after regulators grounded all of United’s Boeing 737 MAX 9 fleet and put a big question mark over certification of the larger variant MAX 10, which was due for deliveries this year and was to be the cornerstone of United’s fleet.
United has ordered 277 MAX 10 jets with options for another 200, but the tumult at Boeing moved the company to look at Airbus’ A321neo jets as an alternative. Those talks raised the spectre of Boeing losing one of its most loyal customers.
However, Airbus’s order book is full through 2030. On Tuesday, Kirby said United wants A321 jets but is not willing to overpay for them.
Now, there is growing realization inside United that the carrier won’t be able to find one solution to its MAX 10 problem, a person familiar with the matter said.
Instead, United is looking to use the delayed Boeing order to extract better deals for other planes, the person said. United has asked Boeing to start building MAX 9s for delivery and plans to convert those orders into MAX 10s once that aircraft is certified, Kirby said.
No major issues had with Boeing, say Canadian airlines
Canada’s major airlines, Air Canada and WestJet, both have Boeing aircraft in their fleet.
According to its website, Air Canada’s fleet includes the Boeing 777-300ER and 777-200LR; the Boeing 787-8 and 787-9; and the Boeing 737-8 MAX, totalling 104 aircraft.
WestJet’s fleet, meanwhile, includes the Boeing 737-8 MAX, 737-700 NG and 737-800 NG; and the Boeing 787-9 Dreamliner, totalling 124 aircraft.
CBC News reached out to both companies to ask if they had any concerns regarding the safety of Boeing aircraft and if they were making changes to their fleet as a result.
A spokesperson for WestJet said that the company has “had no significant incidents with our Boeing aircraft and we maintain full confidence in the safety of our fleet and our industry leading safety standards.”
The airline works closely with Boeing on all aspects of aircraft delivery, the spokesperson added, and is in “constant communication” with the manufacturer and with the federal regulator, Transport Canada.
Air Canada told CBC News in a statement that it has operated Boeing aircraft for decades “and they have always performed reliably, comfortably and safely.”
“As well, we work closely with aircraft manufacturers on an ongoing basis and have a rigorous maintenance regime that complies with or exceeds the requirements of Transport Canada and other international industry and government agencies,” the statement read.
Tantamount to changing business model
Several weeks ago, American Airlines CEO Robert Isom blasted Boeing for its persistent quality issues, asking the jet manufacturer to get its act together. Last week, it placed its first-ever order for MAX 10 jets to secure an alternative to its Airbus A321 planes.
The Texas-based carrier has had to deal with Boeing’s delivery delays, including for the 787 Dreamliner, which not only hampered its efforts to capitalize on the post-pandemic travel rebound, but also drove up its costs.
A WestJet Airlines Boeing 787-9 Dreamliner is seen parked at a gate at Vancouver International Airport, in Richmond, B.C., on Jan. 21, 2021. (Darryl Dyck/The Canadian Press)
In return for a vote of confidence for the troubled MAX 10 program, American Airlines chief financial officer Devon May said American had negotiated options to convert those orders into MAX 8s or MAX 9s. Its supply contract also provides for financial compensation from Boeing for delivery delays.
For airlines like Southwest, one of Boeing’s primary customers, transitioning away from Boeing is tantamount to changing their business model. It would entail heavy investments in maintenance, training and technologies.
Airbus has long tried to woo Southwest with its smaller A220 as a substitute for Boeing’s delayed MAX 7. But CEO Bob Jordan said the cost of operating multiple fleets is “significant.”
“A strong Boeing is great for Southwest Airlines,” Jordan said at JP Morgan’s industrial conference on Tuesday. “It’s great for our industry.”
Job seekers owe it to themselves to understand and accept; fundamentally, hiring is a process of elimination. Regardless of how many applications an employer receives, the ratio revolves around several applicants versus one job opening, necessitating elimination.
Essentially, job gatekeepers—recruiters, HR and hiring managers—are paid to find reasons and faults to reject candidates (read: not move forward) to find the candidate most suitable for the job and the company.
Nowadays, employers are inundated with applications, which forces them to double down on reasons to eliminate. It’s no surprise that many job seekers believe that “isms” contribute to their failure to get interviews, let alone get hired. Employers have a large pool of highly qualified candidates to select from. Job seekers attempt to absolve themselves of the consequences of actions and inactions by blaming employers, the government or the economy rather than trying to increase their chances of getting hired by not giving employers reasons to eliminate them because of:
Typos, grammatical errors, poor writing skills.
“Communication, the human connection, is the key to personal and career success.” ― Paul J. Meyer.
The most vital skill you can offer an employer is above-average communication skills. Your resume, LinkedIn profile, cover letters, and social media posts should be well-written and error-free.
Failure to communicate the results you achieved for your previous employers.
If you can’t quantify (e.g. $2.5 million in sales, $300,000 in savings, lowered average delivery time by 6 hours, answered 45-75 calls daily with an average handle time of 3 and a half minutes), then it’s your opinion. Employers care more about your results than your opinion.
An incomplete LinkedIn profile.
Before scheduling an interview, the employer will review your LinkedIn profile to determine if you’re interview-worthy. I eliminate any candidate who doesn’t have a complete LinkedIn profile, including a profile picture, banner, start and end dates, or just a surname initial; anything that suggests the candidate is hiding something.
Having a digital footprint that’s a turnoff.
If an employer is considering your candidacy, you’ll be Google. If you’re not getting interviews before you assert the unfounded, overused excuse, “The hiring system is broken!” look at your digital footprint. Employers are reading your comments, viewing your pictures, etc. Ask yourself, is your digital behaviour acceptable to employers, or can it be a distraction from their brand image and reputation? On the other hand, not having a robust digital footprint is also a red flag, particularly among Gen Y and Gen Z hiring managers. Not participating on LinkedIn, social media platforms, or having a blog or website can hurt your job search.
Not appearing confident when interviewing.
Confidence = fewer annoying questions and a can-do attitude.
It’s important for employers to feel that their new hire is confident in their abilities. Managing an employee who lacks initiative, is unwilling to try new things, or needs constant reassurance is frustrating.
Job searching is a competition; you’re always up against someone younger, hungrier and more skilled than you.
Besides being a process of elimination, hiring is also about mitigating risk. Therefore, being seen as “a risk” is the most common reason candidates are eliminated, with the list of “too risky” being lengthy, from age (will be hard to manage, won’t be around long) to lengthy employment gaps (raises concerns about your abilities and ambition) to inappropriate social media postings (lack of judgement).
Envision you’re a hiring manager hiring for an inside sales manager role. In the absence of “all things being equal,” who’s the least risky candidate, the one who:
offers empirical evidence of their sales results for previous employers, or the candidate who “talks a good talk”?
is energetic, or the candidate who’s subdued?
asks pointed questions indicating they’re concerned about what they can offer the employer or the candidate who seems only concerned about what the employer can offer them.
posts on social media platforms, political opinions, or the candidate who doesn’t share their political views?
on LinkedIn and other platforms in criticizes how employers hire or the candidate who offers constructive suggestions?
has lengthy employment gaps, short job tenure, or a steadily employed candidate?
lives 10 minutes from the office or 45 minutes away?
has a resume/LinkedIn profile that shows a relevant linear career or the candidate with a non-linear career?
dressed professionally for the interview, or the candidate who dressed “casually”?
An experienced hiring manager (read: has made hiring mistakes) will lean towards candidates they feel pose the least risk. Hence, presenting yourself as a low-risk candidate is crucial to job search success. Worth noting, the employer determines their level of risk tolerance, not the job seeker, who doesn’t own the business—no skin in the game—and has no insight into the challenges they’ve experienced due to bad hires and are trying to avoid similar mistakes.
“Taking a chance” on a candidate isn’t in an employer’s best interest. What’s in an employer’s best interest is to hire candidates who can hit the ground running, fit in culturally, and are easy to manage. You can reduce the odds (no guarantee) of being eliminated by demonstrating you’re such a candidate.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.
I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.
Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.
Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.
NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.
Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.
The air transportation increase, it further states, will be implemented over a longer period.
It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.
Gasoline and heating fuel prices approached $5 a litre at the start of this month.
Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.
“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.
The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.
“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.
Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.
Additionally, she said the government has donated $150,000 to the Norman Wells food bank.
In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.
It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.
This report by The Canadian Press was first published Oct. 21, 2024.
