Alaska Airlines is seeking reimbursement of at least $150 million from Boeing after experiencing significant losses due to the grounding of its 737 MAX 9 fleet. The airline plans to hold Boeing accountable for the incident that occurred earlier this month when a fuselage panel blew out mid-flight. In a conference call with analysts, Alaska Air Group CEO Ben Minicucci expressed the airline's intention to raise the bar on quality control at Boeing. Alaska is conducting a thorough review of Boeing's production quality and control systems and has increased oversight of Boeing's MAX assembly lines. The Federal Aviation Administration has approved inspection procedures for the MAX 9s, allowing Alaska to expect all 65 of its aircraft to be back in service by the end of next week. However, Chief Financial Officer Shane Tackett noted that the grounding has impacted this quarter's profits, including costs from ticket refunds, reaccommodations on other airlines, and overtime pay for employees. Alaska expects further financial impact due to delays in Boeing's planned deliveries of 23 additional MAXs later this year.

Boeing's 737 MAX 9 May Resume Flying Soon, Disagreements Surface

The Boeing 737 MAX 9 could potentially return to service as early as Friday following the issuance of inspection guidelines by the Federal Aviation Administration. United Airlines and Alaska Airlines, the two carriers operating the MAX 9 in the United States, are planning to resume flights this weekend. However, some lawmakers, including Senator Richard Blumenthal, have expressed concerns about the readiness and safety of the aircraft. Blumenthal called for more information on the inspection process and urged the National Transportation Safety Board to provide input. The grounding of the MAX 9 fleet has cost Alaska Airlines approximately $150 million. The incident, which occurred on Jan. 5, resulted in the FAA grounding all 737 MAX 9 jets. With 65 MAX 9s in its fleet, Alaska Air is the second-largest operator of this aircraft type. Despite the financial impact, Alaska Airlines still expects to report a profit for the full year, although it may fall short of analysts' estimates. Southwest Airlines also announced that it expects fewer 737 Max deliveries from Boeing this year due to the certification delay of the 737 Max 7 model.