Boeing has reached a settlement of $160 million with Alaska Air to compensate for losses incurred following a dramatic mid-air blowout incident in January.
Alaska Air stated that the payment is intended to address the profits lost during the first three months of the year, with expectations of further payouts in the coming months.
The incident occurred when a door plug fell from an Alaska Air Boeing 737 Max 9 jet shortly after take-off, leading regulators to temporarily ground nearly 200 aircraft of the same model. This resulted in thousands of flight cancellations.
While the compensation has been welcomed by Alaska Air, criticism has been raised by a law firm representing some of the passengers involved in the incident. Daniel Laurence, a partner at the Stritmatter Firm, expressed disappointment, stating that Boeing prioritized corporate profits over passenger safety.
Boeing’s production slowdown to address manufacturing and safety concerns has led to delivery delays, affecting airlines like Ryanair and United Airlines.
Ryanair warned of potential fare increases due to these delays, while United Airlines requested pilots to volunteer for unpaid leave.
Despite Alaska Air’s warning of a $150 million financial hit in January, the airline reported better-than-expected performances in February and March, surpassing pre-grounding expectations.
Boeing, facing significant financial challenges, did not comment on the compensation but previously projected higher spending than anticipated in the first quarter of the year.
The mid-air incident in January prompted a criminal investigation and legal action against Boeing. Dave Calhoun, Boeing’s CEO, announced his intention to step down by the year’s end, becoming one of the prominent figures to depart from the company amid the crisis.
