Boeing Pays Alaska Air In Excess Of $160M After Blowout

Boeing Alaska Air $160M Blowout

Boeing has compensated Alaska Air with a payment of $160 million to cover losses incurred after a severe mid-air incident in January. This payment aims to address the profits lost by Alaska Air in the first quarter of the year, with expectations of further payouts in the coming months.

The incident led to the temporary grounding of nearly 200 Boeing 737 Max 9 aircraft after a door plug detached from an Alaska Air plane shortly after takeoff, resulting in numerous flight cancellations. Consequently, airlines are grappling with delivery delays as Boeing reduces production of new planes to address manufacturing and safety issues.

In February, Ryanair cautioned travelers about potential fare increases due to these delays. Similarly, United Airlines, anticipating financial repercussions from the grounding, sought pilot volunteers for unpaid leave amidst delivery alterations.

Alaska Airlines initially estimated a financial impact of approximately $150 million in January, though performance in February and March surpassed their pre-grounding expectations.

Boeing, while refraining from comment, previously warned of exceeding expected expenses by at least $4 billion in the first quarter of the year.

The incident on January 5th, which occurred on an Alaska Airlines flight from Portland, Oregon to California, narrowly avoided causing serious injuries to passengers. An initial report from the US National Transportation Safety Board attributed the incident to the absence of four bolts necessary to secure the door to the aircraft.

Boeing is currently under criminal investigation for the incident and facing legal action from affected passengers. Last month, CEO Dave Calhoun announced his departure by the end of the year, marking a significant leadership change in response to the crisis.