Mike Boyd, president of Boyd Group International, and Stewart Glickman, CFRA’s deputy director of research, consider the consumer and market impact of Boeing’s recent unrelated safety incidents.
Boeing paid approximately $160 million in damages to Alaska Airlines. Alaska Airlines Boeing Max 9 A mid-air explosion occurred in January.
The SEC filing said the money was “initial compensation” from Boeing “to address economic harm resulting from the grounding of Flight 1282 and the 737-9 MAX.”
The airline said it had a loss of “approximately $160 million” in the first quarter.
“the result, Flight 1282 accident and the grounding of the Boeing 737-9 MAX, the company lost approximately $160 million in pre-tax earnings in the first quarter, primarily due to lost revenue, costs associated with irregular operations and costs to return the aircraft to service. ”, the application states.
Boeing 737 factory logs reveal delays and production pressures before door plug blowout: Report
An Alaska Airlines Boeing 737 MAX 9 is pictured with other 737 aircraft at the Renton Municipal Airport adjacent to the Boeing factory in Renton, Washington, on January 25, 2024. (Jason Redmond/AFP via Getty Images/Getty Images)
The $160 million in cash is “equivalent” to the amount the airline lost in the Jan. 5 explosion, according to the filing.
The airline said it “expects” Boeing to provide “additional compensation” in the future. The exact amount and terms are unknown at this time.
A sign outside Boeing’s manufacturing facility in Renton, Washington, U.S., Monday, February 5, 2024. (David Ryder/Bloomberg via Getty Images/Getty Images)
Following the Jan. 5 incident, the Federal Aviation Administration grounded a similar Boeing 737 Max 9 airliner for inspection, resulting in thousands of canceled flights.
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The door plug on the 737-9 MAX plane came off after a few minutes. Alaska Airlines Flight 1282 It took off from Portland, Oregon on January 5, reaching an altitude of 16,000 feet. The missing plug depressurized the plane, a cell phone was sucked out of a gaping hole, and a child’s shirt was ripped from his body.
