867 The Airline Observer

Guest Brian Sumers tells us about The Airline Observer newsletter and The Airshow Podcast. Erin Applebaum updates us on the Boeing litigation and Delta Flight 4819 that rolled over on landing at Toronto Pearson International Airport in February 2025. In the news, the LOT Polish Airlines’ fraud case against Boeing is set to go to a jury trial, the FAA approves a 737 MAX production increase, the IAM rejects Boeing’s Latest Offer, controller staffing shortages are impacting operations, and engine shortages are affecting airlines and the leasing market Guest Brian Sumers Brian Sumers produces The Airline Observer newsletter dedicated to news and analysis about the global airline business. He covers every facet of the industry except operations. The newsletter targets professionals working in the airline and travel industries, but others with an interest in the industry will also find it valuable. Brian can also be found on The Airshow Podcast with Jon Ostrower and Brett Snyder. Brian explains the types of stories he enjoys reporting on, including the people behind the industry, who is up and who is down, loyalty programs, and revenue management. He’s been covering airlines for some 15 years and tells us about the lack of airline policy and procedures clarity, and who understands their competition and who doesn’t. We hear his thoughts about his recent interviews with Scott Kirby and Sir Tim Clark, some of the hot-button issues that airlines see ahead, and the future of LCCs in the U.S. Brian is a professional journalist with more than a decade of expertise covering airlines. He has written for Skift, Aviation Week, Conde Nast Traveler, the Los Angeles Times, and the Wall Street Journal. Brian is often found in major media discussing airline news, with recent appearances in the Washington Post, New York Times, and Boston Globe, as well as on CNN, ABC News, and CBS News. He attended Northwestern University’s Medill School of Journalism, has a master’s degree in journalism from the University of Southern California’s Annenberg School, and an MBA from UCLA’s Anderson School of Management. Aviation News LOT Polish Airlines’ Fraud Case Against Boeing Set to Go to Jury Trial LOT Polish Airlines’ fraud and misrepresentation case against Boeing is proceeding to a jury trial scheduled for November 3, 2025, in the U.S. District Court for the Western District of Washington. LOT alleges that Boeing rushed the 737 MAX to market, bypassed proper engineering protocols, withheld safety-critical details from regulators, and misled airline customers about the scope and safety of design changes from previous 737 models. The airline claims that these actions led to its belief that the 737 MAX was airworthy and economically advantageous. LOT claims at least $250 million in losses from the grounding, including lost revenue, storage costs, and expenses for replacing the unfit aircraft. After months of limits, FAA allows Boeing to increase MAX production The FAA has approved an increase in the production cap for Boeing's 737 MAX jets, allowing for the manufacture of 42 aircraft per month. This follows a review of Boeing's manufacturing processes and safety controls. The FAA will continue to supervise Boeing’s operations and monitor the manufacturer’s safety and quality culture. The rate increase helps Boeing's financial situation by accelerating cash flow, improving debt serviceability, and restoring investor confidence. Workers reject Boeing's latest offer after nearly three months on strike The roughly 3,200 members of the International Association of Machinists and Aerospace Workers (IAM) District 837 at Boeing Defense in the St. Louis area rejected the company's latest contract proposal. In a statement, Boeing said "We’re disappointed with the vote result" and "we are turning our focus to executing the next phase of our contingency plan." Boeing’s latest contract offer reduced the ratification bonus, added $3,000 in Boeing shares that vest over three years, and added a $1,000 retention bonus in four years. Wage growth for workers at the top of the pay scale increased in the fourth year of the contract. Flights to Los Angeles International Airport halted due to air traffic controller shortage Controller staffing shortages have halted some flights departing for LAX, and staffing-related delays have occurred at Chicago, Washington, and Newark, New Jersey. The temporary FAA ground stop was not expected to be the only time flights will be delayed and canceled as the air traffic controllers work without pay during the federal government shutdown. How engine shortages sent almost-new Airbus jets to the scrapyard Due to a global shortage of commercial jet engines, especially Pratt & Whitney’s GTF engine, aircraft are being grounded, and airline costs are increasing worldwide. The situation is so bad that some nearly new aircraft are being stripped for their engines and valuable components, because the ...