Quantcast

Storing Boeing's grounded jets: A costly logistical challenge

Southwest's layoffs dent its worker-first culture
Abu Dhabi's long-haul carrier Etihad Airways sees record $476 million profit in 2024
Jet2 warns of profits squeeze from rising costs and late bookings
Southwest bends further to activist shareholder Elliott's demands
Hong Kong Airlines launches daily Sydney flights
Airline to launch new bunk beds in economy on long-haul flights next year
How Airline Employees Are Coping After Deadly Washington Crash
Major airline reverses in-flight menu change amid outcry
British Airways frequent flyer scheme changes: everything you need to know
Airline introduces world-first hand luggage ban on popular travel gadget
Air Canada Delays Boeing 767 Reentry
Flight Centre tips ‘price war’ as first direct Melbourne to LA Delta flights go on sale
FAA reverses course on meeting prohibition, blaming rogue employee
British Airways tweaks frequent flyer scheme after backlash
Delta flight from New York to Florida diverted to North Carolina due to ‘odor in the cabin’
EASA Certifies Safran’s First Electric Motor
US court blocks Biden administration's airline fee disclosure rule
JetBlue Issues Dim Outlook But Execs Remain Confident in Turnaround Plan
Delta to Resume Tel Aviv Flights April 1
Boeing CEO Ortberg outlines 2025 priorities after heavy losses
Storm Eowyn: Thousands of trains, flights and ferries cancelled as 100mph wind batters UK
Indian carrier long haul: IndiGo returns to profitability, plans long haul flights
These Frequent Fliers Are Done With Loyalty Programs
JetBlue accepting Venmo as payment method for flights purchased through mobile app
United Airlines stock rallies on results, as growing demand wasn’t just about premium seats
Delta Adds Another Alaska Route
Southwest to Reduce Pilot Head Count at Several Bases
Dublin Airport savings boost for holidaymakers – but passengers need to be quick
American Halts CRJ-200 Operations
Shanghai Airlines to Launch Casablanca Route
Storing Boeing's grounded jets: A costly logistical challenge
Policy
Webp b737max
Boeing 737 MAX | Boeing

In 2019, the grounding of Boeing 737 MAX aircraft affected nearly 500 jets, including around 100 new ones that could not be delivered after two fatal crashes within five months. This crisis significantly impacted Boeing's market value, reducing it by $41.5 billion and incurring a cost of almost $1.5 billion for canceled flights.

A significant financial burden during this period was the storage cost for these grounded planes. The Los Angeles Times reported on Southwest Airlines storing 34 of its 737s in the Mojave Desert but did not disclose specific costs. An "industry veteran" estimated these expenses at $2,000 per month per aircraft.

Determining exact storage costs is challenging as airlines and manufacturers often do not share this data due to its high variability. Estimates differ widely; while the LA Times cited a monthly cost of $2,000, a San Diego Union-Tribune article suggested $0.40 per day per 1,000 lbs of aircraft weight, which translates to approximately $3,100 monthly for storing a 737-800 model.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

The weight differences among various 737 models also affect storage costs. For example, the base model 737 Classic (737-300) weighs about 72,360 lbs empty, whereas the newer Boeing 737 MAX weighs around 138,699 lbs empty.

Economies of scale in aircraft storage might have allowed airlines to negotiate bulk deals for storing large numbers of aircraft like the heavier MAX variant at prices similar to lighter versions.

Tim Zemanovic, a former owner of an Arizona-based aircraft storage facility told the LA Times: "Planes are meant to be flying and being used... You've got to keep them that way even when they're in storage." Maintenance tasks such as running turbofans weekly and ensuring control surfaces function add to costs. Environmental factors like desert sand and wildlife also contribute to maintenance challenges.

Despite these expenses, keeping planes ready for return was necessary once regulatory approvals were granted. Each jet required extensive checks before returning to service after prolonged grounding.

Production issues compounded Boeing's challenges as it suspended new 737 MAX construction from January 2020 due to space constraints and ongoing evaluations amid continued groundings. Bloomberg Intelligence analyst George Ferguson remarked: “They can’t keep building and parking planes indefinitely.”

By March 2021, global regulators began approving the return of the MAX fleet with Boeing starting deliveries from long-term storage facilities soon after. As of April 2025 estimates indicated there were still some undelivered but completed MAX units awaiting dispatch.

Looking ahead post-grounding era sees typical seasonal or end-of-life-related storage patterns resuming although past experiences likely remain vivid reminders prompting careful future planning by both airlines and manufacturers alike.

Boeing has sought extensions related FAA exemptions highlighting ongoing regulatory hurdles potentially affecting operational timelines suggesting further efforts needed avoiding repeat disruptions seen previously with massive associated costs incurred during earlier crises.

___

Organizations Included in this History
More News

Emirates has expanded its Aircrafted KIDS initiative to the Middle East and North Africa region, starting with the donation of 800 bags to two non-profit organizations in Egypt.

Aug 1, 2025

The Airline Pilots Association (ALPA) has issued a statement on X, urging policymakers to prioritize the ongoing modernization of air traffic control (ATC) systems.

Jul 31, 2025

ITA Airways announced on X that it is extending the suspension of flights to and from Tel Aviv through September 30, including the cancellation of flights AZ809 and AZ815 on October 1.

Jul 31, 2025

Emirates has announced on X its plans to launch daily flights from Dubai to Hangzhou, marking an expansion of its network in China.

Jul 31, 2025

Ethiopian Airlines has announced on X that it is now operating twice-daily flights from Juba, South Sudan, to India, enhancing connectivity for travelers.

Jul 31, 2025

Francesco Sciortino will join the Executive Board of Lufthansa Airlines as Hub Manager for Frankfurt starting September 1, 2025.

Jul 31, 2025