United Airlines Incident with Boeing 737 MAX 9 Fleet
United Airlines faced a challenging situation when its Boeing 737 MAX 9 fleet had to be grounded for three weeks following a mid-air incident on an Alaska Airlines flight in January. The incident led to significant financial repercussions for the airline, with a pre-tax loss of $164 million in the first quarter.
Financial Impact on United Airlines
- United Airlines attributed a $200 million hit to its earnings in the initial three months of the year to the incident.
- The airline stated that it would have reported a quarterly profit if not for the incident.
- Despite the loss, United Airlines’ shares increased by more than 5% after the announcement, indicating investor confidence.
Boeing’s Involvement and Ongoing Issues
Boeing, the aircraft manufacturer, faced additional challenges due to the incident. The company paid $160 million to Alaska Airlines to cover their losses and also experienced delays in deliveries affecting United Airlines operations.
Boeing has been under scrutiny for safety concerns raised by a whistleblower regarding the manufacturing of its jets. Engineer Sam Salehpour accused Boeing of taking shortcuts in the production of its 787 and 777 jets, leading to potential safety risks.
Concerns and Investigations
The incident on the Alaska Airlines flight raised significant concerns about the safety of Boeing’s aircraft. This added to the scrutiny Boeing faced following two fatal crashes involving 737 Max 8 passenger jets in 2018 and 2019, resulting in the loss of 346 lives.
Despite the allegations and safety concerns, Boeing has maintained confidence in the safety of its planes and dismissed the accusations as inaccurate.
Looking ahead, Salehpour is set to be a key witness at a US Senate hearing scheduled for April 17 to address the issues raised.