Boeing Pays $160 Million in Compensation to Alaska Airlines for 737 Max Blowout and United Pilots Take Unpaid Time Off Due to Delays from Boeing

Portland, OR, Oregon United States of America
Boeing paid Alaska Airlines $160 million in compensation for the blowout of a panel on an Alaska Boeing 737 Max 9 jetliner that occurred in January. The payment covered Alaska's pretax loss related to the accident and included lost revenue and costs due to irregular operations.
United Airlines is asking its pilots to take unpaid time off next month because of delays in receiving new planes from Boeing.
Boeing Pays $160 Million in Compensation to Alaska Airlines for 737 Max Blowout and United Pilots Take Unpaid Time Off Due to Delays from Boeing

On April 4th, Boeing paid Alaska Airlines $160 million in compensation for the blowout of a panel on an Alaska Boeing 737 Max 9 jetliner that occurred in January. The payment covered Alaska's pretax loss related to the accident and included lost revenue and costs due to irregular operations. Additionally, United Airlines is asking its pilots to take unpaid time off next month because of delays in receiving new planes from Boeing.



Confidence

80%

Doubts
  • It is not clear if the panel blowout was caused by a design flaw or human error.
  • The compensation amount may be seen as too low given the severity of the accident and its impact on Alaska Airlines.

Sources

76%

  • Unique Points
    • Alaska Airlines lost approximately $160 million in Q1 pretax profit as a result of Flight 1282 and the Boeing 737-9 MAX grounding.
    • Boeing paid Alaska Airlines approximately $160 million in compensation following the midair blowout. The money was initial compensation to address financial damages caused by Flight 1282 and the groundings.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (50%)
    The article is deceptive because it implies that Boeing has fully compensated Alaska Airlines for the financial damages incurred as a result of Flight 1282 and the MAX groundings. However, according to the SEC filing cited by Fox Business, this $160 million payment was only "initial compensation" and not the final amount or terms. The article does not disclose any sources for these claims or provide any context on how Boeing calculated the initial compensation. Additionally, the article uses emotional language such as "midair blowout" and "gaping hole" to sensationalize the incident and make it sound more dramatic than it was.
    • The airline said that Boeing is 'expected' to provide 'additional compensation' in the future. The exact amount and its terms are not known at this time.
  • Fallacies (85%)
    None Found At Time Of Publication
  • Bias (85%)
    The author uses the phrase 'initial payment' to describe the compensation paid by Boeing. This implies that there will be additional payments in the future and creates a sense of urgency for Alaska Airlines to receive more money from Boeing. The use of this term is biased because it suggests that Alaska Airlines has not received enough compensation, despite receiving $160 million in cash.
    • BOEING'S 737 FACTORY LOGS REVEAL DELAYS, PRODUCTION PRESSURE BEFORE DOOR PLUG BLOWOUT: REPORT
      • ]The airline said that they expect additional money from Boeing[
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (50%)
        None Found At Time Of Publication

      74%

      • Unique Points
        • Alaska Airlines received $160 million in initial compensation from Boeing for the blowout of a panel on an Alaska Boeing 737 Max 9 jetliner in January.
        • United is asking its pilots to take time off in May because of delays in receiving new planes from Boeing.
        • Alaska expects additional compensation beyond the first quarter, but details are confidential.
      • Accuracy
        No Contradictions at Time Of Publication
      • Deception (30%)
        The article is deceptive in several ways. Firstly, the author states that Boeing paid Alaska Airlines $160 million for the grounding of the 737-9 MAX aircraft but does not provide any context or explanation as to why this payment was necessary. This statement implies that Boeing was responsible for causing the incident and therefore should be held accountable financially, which is not entirely accurate. Secondly, when describing the incident itself, the author uses sensationalist language such as
        • The article states that a defective door plug flew off an Alaska Airlines Boeing 737 MAX 9 shortly after taking off from Portland in Oregon and left a gaping hole in the plane. This statement is deceptive because it implies that the door plug was responsible for causing the incident, when in fact fastening bolts were missing from the fuselage section of the aircraft.
        • The article states that Boeing chief executive Dave Calhoun took responsibility for this error. However, there is no evidence to suggest that he was directly involved or even aware of this issue at the time it occurred.
      • Fallacies (100%)
        None Found At Time Of Publication
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (50%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (50%)
        The author has a conflict of interest on the topics of Boeing and Alaska Airlines as they are both companies that have been affected by the grounding of the 737-9 MAX. The article mentions that Boeing paid $160 million to Alaska Airlines for lost revenues, costs due to irregular operations, and costs to restore fleet to operating service.
        • The author has a conflict of interest on the topics of Boeing and Alaska Airlines as they are both companies that have been affected by the grounding of the 737-9 MAX. The article mentions that Boeing paid $160 million to Alaska Airlines for lost revenues, costs due to irregular operations, and costs to restore fleet to operating service.

        71%

        • Unique Points
          • United Airlines is asking its pilots to take time off in May because of delays in receiving new planes from Boeing.
          • Almost all of the shortfall consists of Boeing 737 Max planes, including a new, larger model.
        • Accuracy
          • , United expects to make similar requests during the summer and possibly into the fall.
          • United had planned to begin flying 80 Max 10 jets this year but expects to receive only 88 this year and 64 in 2025.
          • The Federal Aviation Administration has not yet certified the Max 10, however, and FAA approval is likely to be further delayed by increased scrutiny of Boeing since a panel blew out of an Alaska Airlines Max 9 in January.
          • United CEO Scott Kirby is one of several airline executives who have called out problems at Boeing and sought a meeting with Boeing directors.
          • Boeing announced last week that CEO David Calhoun will step down at the end of the year as part of a leadership shakeup at the company.
          • The head of Boeing's commercial-airplanes unit has already been replaced, and the chairman of the board will not stand for reelection in May.
          • Shares of Boeing Co. fell 1.5%, while United Airlines Holdings was up less than 1% in afternoon trading Monday.
        • Deception (30%)
          The article is deceptive in several ways. Firstly, the author claims that United Airlines is asking its pilots to take time off due to delays in receiving new planes from Boeing. However, this statement contradicts information provided later in the article which states that United expects to receive only 88 of the 191 planes it ordered this year and 64 next year. This means that there is no shortage of new planes and therefore no need for pilots to take time off due to delays. Secondly, the author quotes a spokesperson from United Airlines stating that they expect to make similar requests during the summer and possibly into the fall. However, this statement contradicts information provided earlier in the article which states that United expects only 88 planes this year and 64 next year. This means that there is no need for pilots to take time off due to delays beyond May. Thirdly, the author quotes a spokesperson from Boeing stating that they are struggling with production due to manufacturing problems. However, this statement contradicts information provided earlier in the article which states that federal regulators have been investigating production quality issues at Boeing and the FAA has barred Boeing from increasing production of 737 Max jets. This means that there is no need for pilots to take time off due to delays caused by manufacturing problems at Boeing.
          • The statement 'We are offering our pilots voluntary programs for the month of May to reduce excess staffing,' contradicts information provided earlier in the article which states that there is no shortage of new planes and therefore no need for pilots to take time off due to delays.
          • The statement 'United Airlines is asking its pilots to take time off in May because of delays in receiving new planes that the airline ordered from Boeing' contradicts information provided later in the article which states that United expects only 88 planes this year and 64 next year.
        • Fallacies (70%)
          The article contains several fallacies. The first is an appeal to authority when it states that the Federal Aviation Administration (FAA) has not yet certified the Max 10 and that FAA approval is likely to be further delayed by increased scrutiny of Boeing since a panel blew out of an Alaska Airlines Max 9 in January. This statement implies that the FAA's decision is final, which it isn't. The second fallacy is inflammatory rhetoric when it states that United CEO Scott Kirby and other airline executives have called out problems at Boeing and sought a meeting with Boeing directors. This statement suggests that these executives are trying to bully or intimidate Boeing, which isn't true. The third fallacy is an appeal to authority again when it states that the FAA has barred Boeing from increasing production of 737 Max jets. This statement implies that the FAA has absolute power over Boeing, which isn't true.
          • The Federal Aviation Administration (FAA) has not yet certified the Max 10 and that FAA approval is likely to be further delayed by increased scrutiny of Boeing since a panel blew out of an Alaska Airlines Max 9 in January.
        • Bias (75%)
          The article contains examples of bias in the form of language that dehumanizes and demonizes one side. The author uses phrases such as 'white supremacists online celebrated' and 'verified accounts on X and major far-right influencers on platforms like Telegram were celebrating'. These phrases suggest a negative view towards white supremacists, which is not supported by the facts presented in the article.
          • Examples of bias include 'white supremacists online celebrated' and 'verified accounts on X and major far-right influencers on platforms like Telegram were celebrating'
            • The author uses language that dehumanizes one side
            • Site Conflicts Of Interest (100%)
              None Found At Time Of Publication
            • Author Conflicts Of Interest (0%)
              None Found At Time Of Publication

            80%

            • Unique Points
              • Alaska Airlines received $160 million in initial compensation from Boeing for the blowout of a panel on an Alaska Boeing 737 Max 9 jetliner in January.
              • The payment covered Alaska's pretax loss related to the accident, including lost revenue and the cost of returning its Max 9 fleet to service after they were grounded for three weeks.
              • Alaska expects additional compensation beyond the first quarter, but details are confidential.
              • A panel that plugged a gap left for an extra emergency exit blew off an Alaska Max 9 as it flew over Oregon on January 5th. Pilots were able to land safely and no one was injured.
              • The FAA grounded all Max 9s in the United States after the incident, affecting both Alaska and United Airlines.
              • The Justice Department is examining whether the incident violated terms of a settlement that Boeing reached in 2021 to avoid criminal prosecution for allegedly misleading regulators who certified Max jets for flights.
              • Alaska expects to lose between $1.05 and $1.15 per share for the January-March quarter, with 95 cents per share of the loss related to the accident.
              • United is asking pilots to take unpaid time off next month because of delays in getting new planes that it ordered from Boeing.
              • Alaska Air Group shares rose more than 4% and Boeing gained more than 1% in afternoon trading on Thursday.
            • Accuracy
              • Alaska expects additional compensation beyond the first quarter, but details are confidential.
            • Deception (50%)
              The article is deceptive in several ways. Firstly, the author does not disclose their sources or provide any evidence to support their claims. Secondly, the article uses sensationalist language such as 'blowout' and 'compensation', which creates a false sense of urgency and importance without providing context for readers. Thirdly, the article quotes Boeing's CFO stating that customer consideration will affect Boeing's financial results but does not provide any specific numbers or details about what this means. Lastly, the article uses selective reporting by only mentioning Alaska Airlines receiving compensation while ignoring other customers who may have also received payments from Boeing.
              • The article uses sensationalist language such as 'blowout' and 'compensation', which creates a false sense of urgency and importance without providing context for readers.
              • The author states that 'Alaska Airlines says Boeing has paid the carrier $160 million in initial compensation for a panel that blew out of an Alaska Boeing 737 Max 9 jetliner in January.' However, there is no evidence provided to support this claim.
            • Fallacies (85%)
              The article contains several fallacies. The author uses an appeal to authority when they mention that the Federal Aviation Administration (FAA) and National Transportation Safety Board (NTSB) are investigating the incident. This is not a logical fallacy as it is accurate information, but it does demonstrate a bias towards accepting mainstream sources of information without question.
              • The airline said Thursday that it expects additional compensation, the terms of which it said are confidential.
            • Bias (85%)
              The article reports that Boeing has paid Alaska Airlines $160 million in compensation for a panel blowout on an Alaska Boeing 737 Max 9 jetliner. The payment covered the airline's pretax loss related to the accident and is expected to be followed by additional compensation, which are confidential. This suggests that there may have been other financial damages caused by the incident that were not included in this initial payment. Additionally, Alaska Airlines expects to lose between $1.05 and $1.15 per share for the January-March quarter due to the accident and grounding of its Max 9 fleet, which suggests a significant impact on their business operations.
              • Alaska Airlines says Boeing has paid the carrier $160 million in initial compensation
                • Alaska expects to lose between $1.05 and $1.15 per share for the January-March quarter
                  • The payment covered Alaska's pretax loss related to the accident
                  • Site Conflicts Of Interest (100%)
                    None Found At Time Of Publication
                  • Author Conflicts Of Interest (0%)
                    None Found At Time Of Publication