Photo by John McArthur on Unsplash
Boeing Pays Alaska Airlines for Midair Door Blowout
April 5, 2024
Boeing has paid Alaska Airlines approximately $160 million in compensation after the door plug of Alaska Airlines flight 1282 fell off a few minutes after takeoff from Portland International Airport on Jan. 5. The plane safely made an emergency landing, and no one was seriously injured.
ABC News reported that the money is “initial compensation” from Boeing “to address the financial damages incurred as a result of Flight 1282 and the 737-9 MAX groundings.” This comprises lost revenues, irregular operations costs, and restoring the fleet to operating service.
Alaska also said additional compensation is expected from Boeing, the terms of which are confidential, according to the filing. The Jan. 5 incident prompted the Federal Aviation Administration to ground similar Boeing 737 MAX 9 jetliners to allow for inspections. These inspections resulted in thousands of flight cancelations. The Seattle-headquartered carrier previously disclosed that it was expected to incur at least a $150 million profit loss due to the groundings.
Boeing pays Alaska Airlines $160 million in compensation for the blowout of a panel during flight https://t.co/YppBodhNyc
— The Associated Press (@AP) April 4, 2024
The jets were grounded for approximately one month while Alaska, Boeing, and the FAA completed door plug inspections. Alaska canceled 110-150 daily flights without its MAX 9s during that period.
After the incident, Boeing released a transcript of its remarks at the BofA Global Industrials Conference on its website. In a series of statements, the company claims it remains “committed to transparency.”
“Let me first start by saying that we continue to be fully committed to transparency and accountability with our regulators,” the transcript says. “The FAA is deeply involved and undertaking a tougher audit than anything we’ve ever been through before. As they do their important work, we’re undertaking comprehensive actions, so that we can move forward to strengthen quality and build confidence.”
Boeing claims that while there are changes that need to happen, the company plans to go “slow” until it gets this right deliberately. It states that the events of Alaska Airlines Flight 1282 forced the company to acknowledge that it needs to “improve” the safety and quality of its corporation.
Subsequently, Boeing CEO Dave Calhoun will step down at the end of the year.
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