Boeing shells out $160MILLION to Alaska Airlines in ‘initial compensation’ after 737 Max 9 jets were grounded in wake of door blowout
Alaska Air Group announced on Thursday that Boeing has made a one-time payment totaling over $160 million in the first quarter to make up for the financial loss the airline suffered when their 737 MAX 9 aircrafts were temporarily grounded.
According to a filing from Alaska, the amount is equal to the lost revenues from the accident and grounding in Q1, and that it anticipates receiving extra compensation.
Following a mid-air cabin panel blowout on an Alaska Air MAX 9 aircraft in January, the US aviation regulator ordered the grounding of 171 aircraft for inspections. Later that month, the grounding was lifted.
Alaska also noted that demand remained high despite the immediate impact after the accident.
‘Although we did experience some book away following the accident and 737-9 MAX grounding, February and March both finished above our original pre-grounding expectations due to these core improvements,’ the airline said.
The FAA has temporarily grounded almost all Boeing 737 MAX 9 jets in response to a near-catastrophic failure on an Alaskan Airlines flight on Friday night
On January 5 an Alaska Airlines Boeing 737 Max 9 took off from Portland, Oregon bound for California was forced to make a harrowing emergency landing when the door plug blew out at 16,000 feet
If true, that would make Boeing primarily responsible for the accident, rather than its supplier Spirit AeroSystems, which originally installed the panel to the jet in Wichita, Kansas
The incident has been damaging for Boeing’s reputation and the CEO of United Airlines Scott Kirby warned Boeing needs ‘real action’ to restore its reputation.
The FAA’s decision to ground the fleet of Boeing 737 MAX 9’s came as several airlines and regulators decided to take similar steps.
Alaskan Airlines quickly made the move after the almost-disaster in Portland on Friday, and CEO Ben Minicucci said in a statement the planes will only go back into its fleet after clearing precautionary maintenance procedures, which he expected to be ‘in the next few days.’
According to aviation outlet The Air Current, the aircraft involved in the incident had come under scrutiny by officials just a day before the window blew out.
The outlet claimed that on January 4, an intermittent warning light appeared as it taxied to a terminal from a previous flight, which led the airline to remove it from extended range operations (ETOPS). Later that same day in a separate flight, the warning came back on.
The Boeing 737 MAX 9 jet involved in the incident had reportedly only gone into service in November 2023, and was practically new by aviation standards after reportedly undergoing less than 200 flights before the incident.
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