Boeing gives Alaska Airlines $61million in credit as compensation for 737 disaster that grounded fleet

Boeing has given Alaska Airlines $61million in supplier credit memos for the disaster which temporarily grounded a fleet of 737 MAX 9 jets.

The airline suffered a near-catastrophe when a door plug blew out at 16,000 feet on a flight from Oregon on January 5 and it led to an emergency landing.

It led to the US Federal Aviation Administration grounding 171 of the 737 MAX 9 jets for about three weeks.

Boeing provided $61 million in supplier credit to Alaska Airlines as additional compensation after handing them $162 million in cash in the first quarter.

The credit memos can be used to make future purchases at Boeing, Alaska said in its quarterly report on Friday.

Boeing has given Alaska Airlines $61million in supplier credit memos for the disaster which temporarily grounded a fleet of 737 MAX 9 jets

The airline suffered a near-catastrophe when a door plug blew out at 16,000 feet on a flight from Oregon on January 5 and it led to an emergency landing

Boeing provided $61 million in supplier credit to Alaska Airlines as additional compensation after handing them $162 million in cash in the first quarter

Boeing is also compensating United Airlines, a prominent customer, to address the financial damages related to the grounding.

There were 154 flights by the Alaska Airlines Boeing 737 MAX 9 before the January 5 mid-air emergency. 

The previous $162million provided to the airline was equal to the revenue lost according to a filing from the airline.

The Flight 1282 blowout on January 5 as the plane took off from Portland, Oregon left a gaping hole in the side of the aircraft, and prompted wide-ranging federal investigations into Boeing's production process. 

It also forced United to temporarily suspend service on all 79 of its 737 MAX 9 aircraft, which resulted in a $200million hit in the first quarter.

A National Transportation Safety Board (NTSB) report said that the January 5 incident was down to four crucial bolds being missing from the panel which blew out.

An audit by the FAA of both Boeing and Spirit AeroSystems 'found multiple instances where the companies allegedly failed to comply with manufacturing quality control requirements' in March.

There were 154 flights by the Alaska Airlines Boeing 737 MAX 9 before the January 5 mid-air emergency

Boeing, led by CEO David Calhoun, is also compensating United Airlines, a prominent customer, to address the financial damages related to the grounding

The head of the NTSB previously accused Boeing of 'not cooperating' with its investigation into the January incident.

Jennifer Homendy said investigators sought the names of the 25 people who work on door plugs at the Renton facility, but had not received them from Boeing.

However, Boeing spokesperson Connor Greenwood pushed back and insisted that names of Boeing employees were provided 'early in the investigation'.

Last month Sam Salehpour, a quality engineer, claimed he was targeted after raising concerns about the quality of Boeing's 787 Dreamliner jets.

'I have even been subjected to threats of violence from my supervisor after I attempted to discuss the problems in a meeting in April 9 2023,' Salehpour said.

'After the meeting, my supervisor said to me, "I would have killed anyone who said what you said if it was from some other group, I would tear them apart."

The engineer said he filed an ethics complaint, but no action was taken, 'and I continue to report to a supervisor who has threatened me with bodily injury for speaking out.'

 The head of the NTSB Jennifer Homendy (pictured) previously accused Boeing of 'not cooperating' with its investigation into the January incident

A photo shows three locations (circled) where retaining bolts are missing after the door was removed and then re-installed during a repair at Boeing's plant in Renton. A fourth location of a suspected missing bolt, in the top left, is not visible in the photo

The fuselage plug area of Alaska Airlines Flight 1282 Boeing 737-9 MAX, which was forced to make an emergency landing with a gap in the fuselage, is seen during its investigation

Salehpour asserted that higher-ups at the company had barred him from key meetings and sidelined him from his job duties as a means of retaliation.

He also provided the committee with a photo of a large nail that was allegedly planted in his car tire.

'That was about a one month old tire,' he explained. 'The nail was inserted in there, I believe it happened at work.'

Senator Roger Marshall asked if he believed the damaged tire and threats constituted efforts by the company to silence him.

'I think the retaliation was somebody calling me on my personal phone time after time. This is my personal phone,' Salehpour said.

'My boss was calling me there for forty minutes, he berated me and chewed me out. I have a work phone that he could use but he called me on my personal phone.

'After the threats, and after this, it really scares me - believe me. But I am at peace.'

Boeing whistleblower John Barnett, 62 - a former quality control manager and employee of 32 years - was found dead in his truck outside a South Carolina hotel in March days after testifying against the company in a lawsuit.

The coroner put it down to a 'self-inflicted' gunshot wound in the head, though the police confirmed that they would investigate further.

A second whistleblower, Joshua Dean, died suddenly last month having raised the alarm about supposed defects in 737 Max jets. 

The former Spirit employee previously said he was fired from his quality auditing role for questioning standards at the supplier's plant in Wichita, Kansas, in October 2022.

His family said on social media that Dean died in hospital after a sudden illness.