Alaska Air has received a $160m payment from Boeing to compensate for losses incurred after a mid-air blowout in January. This payment is meant to cover profits lost in the first three months of the year, with further payouts expected in the future. The blowout led to the temporary grounding of nearly 200 Boeing 737 Max 9’s after a door plug fell from an Alaska Air plane during take-off, resulting in numerous flight cancellations.
Boeing, which did not comment on the recent payment but had previously warned of increased spending in the first three months of the year, is now facing a criminal investigation into the incident and legal action from passengers. The company has been in crisis since the January emergency, in which passengers narrowly escaped serious injury. Chief executive Dave Calhoun announced last month that he would step down by the end of the year, making him the highest-profile leader to leave the company in response to the crisis.
With airlines facing delivery delays as Boeing slows production to address manufacturing and safety concerns, companies like Ryanair and United Airlines have warned of financial hits. United Airlines recently asked pilots to volunteer for unpaid leave due to the changes in delivery schedules. Despite an initial warning of a $150m hit in January, Alaska Air reported that both February and March ended above their original pre-grounding expectations.
As companies like Alaska Air struggle to cope with delays caused by Boeing’s slow production schedule, it remains unclear how long it will take for things to return to normal. However, one thing is clear – Boeing is facing significant challenges as they navigate through this crisis and work towards addressing manufacturing and safety concerns while also facing legal action from passengers and ongoing financial impacts on airlines around
