Now Reading
Boeing Has Paid Alaska Airlines $160 Million in Initial Compensation For 737MAX Door Plug Blowout Accident

Boeing Has Paid Alaska Airlines $160 Million in Initial Compensation For 737MAX Door Plug Blowout Accident

men sitting in an airplane

Alaska Airlines revealed on Thursday that beleaguered aircraft manufacturer Boeing has paid it $160 million in initial compensation following the Boeing 737MAX-9 mid-cabin exit plug blowout on Flight 1282 on January 5.

In an SEC filing, the Seattle-based carrier said the accident and subsequent grounding of 737MAX-9 jets had resulted in a $160 million loss in the first quarter, comprising of lost revenues, costs due to irregular operations, and the cost to inspect grounded planes and get the fleet operational again.

The initial cash payment from Boeing covers some of the “financial damages incurred as a result of Flight 1282 and the 737-9 MAX groundings”, although Alaska Airlines says it expects additional compensation.

The exact details, the airline said, will remain confidential.

Several passengers were injured after an exit plug installed on certain 737MAX-9 aircraft blew out as Flight 1282 was on its initial climb out of Portland International Airport bound for Ontario, California.

The shockwaves from the accident are expected to reverberate for some time, with Boeing forced to make major leadership changes after a reported boardroom coup orchestrated by a quartet of U.S. airline CEOs, including Alaska’s Ben Minicucci.

Boeing will be expected to compensate other 737MAX-9 operators who were forced to ground the aircraft in the aftermath of Flight 1282. Other aircraft may have been susceptible to a similar accident after loose bolts were discovered on multiple aircraft belonging to several airlines.

Alaska Airlines has sent its own teams into Boeing’s manufacturing plant to increase oversight on quality control.

View Comment (1)
  • Looks like Boeing essentially refunded the cost of the nearly new 737 MAX 9 to Alaska Airlines and some additional money. It certainly wasn’t accounted for that way, but that’s an equivalent.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

© 2023 All Rights Reserved.

Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to with appropriate and specific directions to the original content.