Alaska Says MAX 9 Grounding Cost $150 Million, Expects Boeing To Pay
On Thursday, Alaska Airlines said the grounding of the Boeing 737 MAX-9 will cost the carrier $150 million, according to a CNBC report. Alaska and United Airlines, the two sole U.S. operators…
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On Thursday, Alaska Airlines said the grounding of the Boeing 737 MAX-9 will cost the carrier $150 million, according to a CNBC report.
Alaska and United Airlines, the two sole U.S. operators of the MAX-9, were forced to ground parts of their fleet after a Jan. 5 incident where a door plug blew out in flight. Since the incident, the FAA has instructed operators to inspect the aircraft while the agency launched an investigation into Boeing’s manufacturing practices and production lines.
The FAA approved a return to service plan on Wednesday with both carriers expecting the planes to fly again this weekend.
Along with the projected $150 million loss, Alaska released its full fourth quarter results on Thursday. Prior to the grounding, the company expected full year 2024 capacity to grow 3% to 5% compared to 2023, however, “given the grounding, and the potential for future delivery delays, the company expects capacity growth to be at or below the lower end of this range.”
According to the Seattle Times, Alaska executives expect Boeing to reimburse the millions in losses. In a conference call, Alaska Air Group CEO Ben Minicucci said, “It’s not acceptable what happened. We’re gonna hold them accountable. And we’re going to raise the bar on quality on Boeing. We’re gonna hold Boeing’s feet to the fire to make sure that we get good airplanes out of that factory.”
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