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Home » Boeing Pays Alaska Airlines $160M in Compensation for 737 Max 9 Blowout

Boeing Pays Alaska Airlines $160M in Compensation for 737 Max 9 Blowout

An Alaska Airlines 737 on the ground outside an airport terminal

Photo: iStock / kameraworld

April 4, 2024
SupplyChainBrain

Boeing has paid Alaska Airlines $160 million in what's being described as "initial compensation" for the blowout of a door panel aboard a 737 Max 9 flight in January. 

According to the Associated Press, the money is for the airline's pretax losses from the incident, as well as lost revenue and costs stemming from returning Alaska's Max 9 fleet to service after a three-week grounding. 

On Jan. 5, a door plug on an Alaska Airlines flight out of Portland International Airport blew out shortly after takeoff. The plane made an emergency landing back in Portland with no reported injuries. 

That led to months of fallout for Boeing, after the Federal Aviation Administration grounded all Max 9 planes in the U.S. An investigation from the National Transportation Safety Board later revealed that four bolts designed to keep the door in place were missing on the January Alaska flight. The NTSB has also expressed frustration with Boeing over a lack of records detailing rivet repair work on the plane done prior to the incident.

In an April 4 filing, Alaska shared that it expects to have lost up to $1.15 per share for the first quarter of 2024. The airline says that it expects "additional compensation" from Boeing sometime down the line.

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