According to an SEC filing from Alaska Air Group, Boeing has compensated them around $160 million in response to the door plug incident on Alaska flight 1282.
Alaska stated that the funds they received are considered as “initial compensation” from Boeing. These funds are intended to cover the financial losses that Alaska incurred due to Flight 1282 and the grounding of the 737-9 MAX planes.
According to the airline, the incident resulted in a loss of approximately $160 million in first-quarter pretax profit. This loss primarily includes lost revenues, costs related to irregular operations, and expenses incurred to restore the fleet to operating service. The information was provided in a filing dated Thursday.
According to the filing, Alaska also mentioned that there will be additional compensation from Boeing, the details of which are confidential.
Boeing’s CFO, Brian West, stated during a conference last month that they anticipate a customer consideration in the upcoming quarter. When asked for comment, Boeing directed ABC News to West’s remarks.
During the Bank of America Industrials Conference on March 20, West emphasized the importance of taking care of their customers and assured that they are making significant progress in fulfilling that responsibility. He stated, “We’ve got to take care of that and we’re well down the road to do that. And we continue to stand behind our customers with that responsibility.”
The door plug of Alaska Airlines flight 1282 unexpectedly detached just moments after the plane took off from Portland International Airport on Jan. 5. Videos captured by passengers revealed a noticeable gap where the door plug had come loose on the Boeing 737 Max 9 aircraft. Fortunately, the plane successfully executed an emergency landing, and fortunately, there were no reports of any serious injuries.
The incident led the Federal Aviation Administration to ground around 171 Max 9s globally. Alaska, on the other hand, resumed the operation of the Boeing 737 Max 9 after conducting fleet inspections on January 26.
In February, the National Transportation Safety Board released a preliminary report revealing that four bolts, which were intended to secure the door plug of the Boeing 737 Max 9 plane, were missing prior to the flight.
The NTSB is currently investigating the incident, while the Department of Justice has also initiated its own probe.
Following the door plug blow-out incident, the FAA has taken steps to enhance its supervision of Boeing. As part of these measures, the agency has initiated an audit to thoroughly evaluate the company’s production and manufacturing processes.
Last week, Boeing made the announcement that its CEO, Dave Calhoun, will step down at the end of the year amidst the fallout of the door plug failure.
