Alaska Airlines Seeks $150 Million Compensation from Boeing for 737-9 Grounding Incident

Alaska Airlines is set to request at least $150 million in compensation from Boeing due to significant losses incurred from the grounding of its entire 737-9 fleet. This financial demand follows an incident on January 5, where a mid-cabin plugged exit door separated during flight, leading to an explosive decompression. The Federal Aviation Administration (FAA) subsequently mandated immediate inspections for certain Boeing 737-9 planes before allowing them to resume operations, prompting Alaska Airlines to ground its fleet of sixty-five 737-9s and cancel hundreds of flights, impacting thousands of passengers.

During a recent conference call with analysts, Alaska Airlines’ CFO, Shane Tackett, outlined the estimated financial toll on the airline’s profits for this quarter, attributing it to rebookings and additional staff overtime payments. Tackett expressed confidence in Boeing’s responsibility to cover the profit impacts resulting from the grounding, as reported by the Seattle Times.

In the wake of the grounding, safety inspections by Alaska Airlines, which operates a Boeing-exclusive fleet since retiring its Airbus aircraft early in 2023, revealed loose bolts on other 737-9 aircraft. Despite these findings, the airline anticipates all 65 planes will resume full service by the end of the week, ensuring passengers’ safety and timely arrivals.

The incident also casts uncertainty on the delivery schedule of an additional 16 737-9s and seven of nineteen MAX 8s slated for Alaska Airlines this year, with potential delays expected. CEO Ben Minicucci expressed frustration over the quality issues discovered during inspections, emphasizing the impact on the airline, its guests, and employees. Minicucci’s comments to NBC News highlighted the demand for Boeing to enhance its internal quality programs.

Further investigations into the January 5 incident suggest that the bolts required to secure the exit door were missing from the time the aircraft left Boeing’s factory. This oversight is believed to be due to Boeing employees’ failure to reinstall the bolts after removing the door during production, according to information reported by The Wall Street Journal.

Boeing’s response to the situation acknowledges the disruption caused to airline customers, expressing regret and committing to a comprehensive plan to safely return the affected airplanes to service while improving quality and delivery performance. The manufacturer pledged to work closely with the FAA and provide unwavering support to its customers throughout the recovery process.