United Airlines CEO says company looking at Boeing alternatives

United Airlines, which has ordered 277 MAX 10 jets from Boeing with options for another 200, would build a new fleet plan that does not include a model already mired in regulatory and delivery delays, with possible orders from Boeing's rival European aircraft maker Airbus, CEO Scott Kirby said on Tuesday. 

In the best-case scenario, MAX 10 deliveries are five years behind their original delivery date, Kirby estimated.

He later said United Airlines would not cancel the jets, just remove them from internal plans. Industry experts say airlines rarely cancel orders for fear of losing deposits, but often juggle models or else use public pressure to help win concessions.

Boeing Commercial Airplanes CEO Stan Deal said in a statement that the planemaker had "let down our airline customers and are deeply sorry for the significant disruption to them, their employees and their passengers."

While Kirby's remarks left questions hanging over the MAX 10 orders, industry sources said the airline also faces a dilemma as it races rivals to meet rising demand.

After disappointing MAX 9 sales, Boeing is betting on the larger-capacity MAX 10 to dent the runaway lead of Airbus's, A321neo at the busiest end of the market.

Analysts say a full rollout of the MAX line-up is crucial to help Boeing stabilize its roughly 40 percent share against Airbus and generate sufficient cash.

Airbus is sold out for similar planes until around 2030.

"It is not helpful for the MAX 10 when United, holding orders for 26 percent of the entire known MAX 10 backlog, says this," said Rob Morris, head of global consultancy at Ascend by Cirium.

Boeing CEO to meet with U.S. senators 

Boeing CEO Dave Calhoun will meet this week with U.S. senators to answer questions about the 737 MAX 9 grounding, as executives for longtime customer United Airlines, raised questions over billions of dollars of orders for MAX 10 jets.

Calhoun is set to hold meetings starting Wednesday on Capitol Hill. He is scheduled to meet with Senators Ted Cruz, a Republican, and Mark Warner, a Democrat, among others following the mid-air blowout of a cabin panel on a new Alaska Airlines jet, sources told Reuters.

Calhoun will also meet with Senator Maria Cantwell, who chairs the Commerce Committee. Last week, she said she plans to hold a hearing after the Federal Aviation Administration (FAA) grounded 171 MAX 9 airplanes. A spokesperson for Cantwell said she was meeting with Calhoun at Boeing's request.

Cantwell and Cruz, the committee's top Republican, held a closed-door briefing last week on the grounding with FAA Administrator Mike Whitaker and National Transportation Safety Board Chair Jennifer Homendy.

Numerous lawmakers on Capitol Hill have questioned Boeing. The company told Senators Ed Markey, JD Vance and Peter Welch in a previously unreported January 17 letter that it was working to "restore trust with out regulators and our customers."

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(With input from Reuters)