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Tue, Jul 02, 2024

Alaska Airlines Sells 737 Max Back to Boeing

Aircraft Experienced Exit Door Blowout Months After Original Purchase

Boeing and Alaska Airlines executed a formal buy-back transaction which will return the 737 Max involved in an explosive decompression in January 2024. 

The airline had taken delivery of the brand new plane three months prior in October 2023, and the incident led to a global grounding of all 737 Max aircraft. The mid-cabin door plug blew out shortly after takeoff from Portland, Oregon, and forced the pilots to divert back to the same airport.

Terms of the buy-back agreement were not revealed but in April, the airline said Boeing had agreed to pay it an initial compensation of $160 million. The payment covered losses Alaska incurred from lost revenues, inspecting grounded aircraft, and costs associated with irregular operations. Alaska expects more compensation from Boeing but has not discussed details, and it has also already ordered a 737 Max10 as a replacement.

The NTSB has been investigating the causes of the blowout, and we reported earlier in Propwash that the agency had penalized Boeing for publicly discussing confidential details about the investigation. Boeing has lost some of its privileges in the investigative process, including the ability to cross-examine other witnesses and being subpoenaed to appear at a hearing in August.

FMI: www.boeing.com, www.alaskaair.com

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