The Alaska Airlines Incident: How Did Boeing Perform?

Boeing is under scrutiny after one of its jets, a Boeing 737 Max 9 operated by Alaska Airlines (flight number 1282), experienced a panel explosion on Friday, January 5, 2024.

The aircraft, carrying a total of 180 passengers and cabin crew, took off from Portland, Oregon, bound for Ontario, California, at 5:07 PM local time. However, just 20 minutes into the flight, an explosion occurred, causing an emergency exit door to detach and fall from an altitude of 16,000 feet.

Passengers experienced fear, with many of their belongings falling out due to the strong wind.

“There was a very loud bang in the back left of the plane, then a ‘woosh’ sound and all the air masks dropped,” said Evan Smith, a passenger, as quoted by Detiktravel from the BBC on Sunday, January 7, 2024.

Evan also witnessed a toddler near the detached emergency exit door. The child's clothing was sucked out of the plane. "The mother was holding onto him to make sure he didn't get pulled out," said Evan.

The plane immediately turned back to Portland. All passengers survived.

(Read also: This is the Airplane with the Highest Accident Ratio in the World)

Following the incident, the United States Federal Aviation Administration (FAA) issued a grounding order for all Boeing 737 Max 9 aircraft.

A preliminary investigation by United Airlines found loose bolts and other installation problems on several 737 Max 9 aircraft. At least five panels are under investigation following the accident, as reported by CNBC Indonesia.

Indonesia, under the Directorate General of Air Transportation of the Ministry of Transportation, also temporarily grounded Boeing 737 Max-9 aircraft starting January 6, 2024.

The Alaska Airlines incident shocked the aviation world. This is concerning, considering Boeing is a major manufacturer in the global aviation industry.

In the third quarter of 2023, Boeing recorded revenue of US$18.10 billion or Rp281.30 trillion (assuming an exchange rate of Rp15,538 per US$). This figure increased by approximately 13.46% year-on-year (YoY) from US$15.95 billion in the previous period.

Despite the apparent profit, Boeing actually incurred a net loss of US$1.63 billion in the third quarter of 2023. This significant loss was smaller than the US$3.27 billion loss in the previous period (YoY).

Poor defense performance and low aircraft deliveries are believed to have affected the company's financial performance.

According to Bisnis.com, Boeing delivered 105 aircraft in the third quarter of 2023, down 6% YoY from 112 units. Total deliveries reached 371 aircraft.

In that quarter, commercial airplanes booked 398 net orders, including 150 737 MAX 10 aircraft for Ryanair, 50 787 aircraft for United Airlines, and 39 787 aircraft for Saudi Arabian Airlines.

Boeing's financial report stated that it still expects to deliver 70-80 Boeing 787 units and 375-400 737 units by the end of 2023.

"Now transitioning 787 to five [units] per month; plan to complete 737 production transition to 38 [units] per month by year-end," Boeing wrote.

The company's total backlog reached US$469 billion, including more than 5,100 commercial aircraft.

Its total assets reached US$134.28 billion. Boeing's liabilities are substantial, amounting to US$150.99 billion, with negative equity of US$16.71 billion.

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