Alaska Airlines on Thursday (April 4) revealed that Boeing has provided the carrier with USD 160 million in “initial compensation” for an incident involving a panel detachment from an Alaska Boeing 737 Max 9 aircraft in January. The airline mentioned that it anticipates further compensation over the shocking incident, however, the details of this are confidential.
The compensation payment by Boeing addressed Alaska’s pretax losses related to the incident, encompassing lost revenue and expenses associated with reinstating its Max 9 fleet into service after a three-week grounding period. The airline delineated the specifics of the compensation in a regulatory filing.
Alaska Airlines mid-air blowout
The accident involved a panel designed to fill an extra emergency exit gap, which detached from an Alaska Max 9 aircraft while the aircraft was flying at 16,000 feet over Oregon on January 5. The pilots safely landed the aircraft, and no injuries were reported.
Following the incident, Alaska promptly grounded all its Max 9 aircraft, leading the Federal Aviation Administration (FAA) to subsequently ground all Max 9s in the United States, impacting United Airlines as well.
Investigation underway
Investigations into the incident are underway by the FAA and the National Transportation Safety Board (NTSB). Additionally, the Justice Department is also examining whether the accident violated the terms of a settlement that Boeing reached in 2021 to avoid criminal charges for allegedly providing misleading information to regulators during the certification process of Max jets.
Meanwhile, Alaska Airlines in its filing on Thursday highlighted that it anticipates loss ranging between USD 1.05 and USD 1.15 per share for the January-March quarter, with 95 cents per share attributed to the accident.
