Boeing pays out Alaska Airlines amid grounding of their planes

Aviation giant Boeing has paid $160 million in compensation to Alaska Airlines for the grounding of its 737 Max 9 planes after the plane’s door panel was blown off in early January.

according to recent submissions Boeing paid the airline an amount after the airline’s first-quarter results were “materially impacted” after the plane’s door panel fell off after takeoff from an airport in Portland, Oregon. The accident resulted in the grounding of the Boeing 737 Max 9.

The company said it expects Boeing to provide additional compensation beyond the first-quarter amount.

Despite the door incident and groundings, Alaska Airlines said “demand remained strong during the quarter and West Coast business travel continued to recover.”

“While there were some reservations following the accident and the grounding of the 737-9 MAX, these key improvements resulted in February and March ending better than originally expected prior to the grounding,” the filing said. It is stated in.

The filing is the first indication of what Boeing is doing to compensate for months of problems and increased scrutiny from customers and government agencies.

The Department of Justice (DOJ) launched a criminal investigation into Boeing in early March following the mid-air explosions. The Justice Department conducted interviews with the plane’s pilot and flight attendant after the company admitted that it could not find work records for the door panels that the National Transportation Safety Board (NTSB) had requested.

The NTSB began an investigation immediately after the incident occurred. The US Federal Aviation Administration (FAA) is also investigating Boeing’s overall safety. FAA Administrator Michael Whitaker said Boeing has problems “centered around its safety culture.”

Congress has also focused on increasing government oversight of Boeing following explosions and other high-profile accidents in recent months. Lawmakers have made it clear they want to make changes soon, and a bill could be in the works to ensure that happens.