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Alaska Air CEO Says Boeing Quality Is Improving Under New Leader

Ben Minicucci (Victor J. Blue/Photographer: Victor J. Blue/Blo)

(Bloomberg) -- Alaska Air Group Inc.’s top executive said quality processes at Boeing Co. are beginning to improve, nearly a year after a frightening in-flight accident at the carrier sent the planemaker into crisis.

“We’re holding the quality bar extremely high on Boeing,” Alaska Chief Executive Officer Ben Minicucci said in an interview with Bloomberg Monday. “Are they where they need to be? No, but we are seeing an improving trend in those quality processes. They’re making a ton of changes.”

Alaska employees are in Boeing’s factory every day, overseeing the aircraft assembly process, Minicucci said, noting that the facility in Washington state is only a short drive from Alaska’s Seattle headquarters. The executive met recently with new Boeing CEO Kelly Ortberg and Alaska holds monthly meetings with the planemaker, in addition to reviewing quarterly reports from an independent Boeing audit team.

Ortberg “has a good grasp of the issues that are there and he’s going to push hard to make the changes that are required,” Minicucci said. 

The carrier has been intertwined with Boeing’s tumultuous 2024 after a door-sized panel flew off an airborne Alaska 737 Max plane in January, drawing widespread attention, prompting temporary aircraft groundings and putting a spotlight on Boeing’s manufacturing processes. Minicucci was a vocal critic of the planemaker in the immediate aftermath, saying he was “angry” and “disappointed” in Boeing.

The CEO told Bloomberg Monday that Boeing has made “huge improvement” in how aircraft components move from one production stage to another if work isn’t completed on time, and in encouraging employees to report safety and quality issues.

Alaska had pending orders at the end of September for 69 Boeing 737 Max aircraft to be delivered between this year and 2027, with options for 105 more from 2026 to 2030. It also has orders for 10 Boeing 787-9 Dreamliners. Delivery of some of Alaska’s 737s already have been moved to 2025 from 2024, and the carrier warned in an October regulatory filing that a strike by Boeing workers this year could cause further delays.

The carrier is “hopeful” that it will receive its first 737 Max 10 aircraft in 2026 as planned, Minicucci said. The aircraft is awaiting federal certification. That could slip into 2026, delaying receipt of the plane by another year, he said.

--With assistance from Julie Johnsson.

©2024 Bloomberg L.P.