Oct 8 (Reuters) - Boeing Co is in discussions with Alaska Air for a potential deal to buy 737 MAX jets once the plane returns to service following a lengthy grounding, three people familiar with the matter said.

The talks are part of a series of negotiations between Boeing and airlines over jet orders or compensation after the 737 MAX was banned worldwide following two fatal crashes. (Reporting by Eric M. Johnson in Seattle and Tracy Rucinski in Chicago Editing by Chris Reese)