According to an SEC filing from Alaska Air Group, Boeing has compensated them with approximately $160 million as a result of the door plug incident on Alaska flight 1282.
According to a filing, Alaska has stated that the funds received from Boeing are considered as “initial compensation.” The purpose of this compensation is to address the financial losses that were incurred due to Flight 1282 and the grounding of the 737-9 MAX.
According to the airline, the incident resulted in a loss of around $160 million in pretax profit for the first quarter. The loss primarily includes lost revenues, costs related to irregular operations, and expenses incurred to restore their fleet to operating service. This information was shared in a filing dated Thursday.
According to the filing, Alaska also mentioned that additional compensation is anticipated from Boeing. The specific terms of this compensation remain confidential.
Boeing’s CFO, Brian West, addressed the issue when he stated during a conference last month that there will be customer considerations that will become evident in the upcoming quarter. When approached for comment, Boeing directed ABC News to West’s remarks.
During the Bank of America Industrials Conference on March 20, West emphasized our commitment to addressing the issue at hand and assured that we are making substantial progress towards resolving it. He reiterated our unwavering support for our customers and our dedication to fulfilling our responsibilities in this regard.
The door plug of Alaska Airlines flight 1282 unexpectedly detached just moments after the plane took off from Portland International Airport on January 5th. Videos taken by passengers on board show a noticeable gap where the door plug had come loose on the Boeing 737 Max 9 aircraft. Thankfully, the pilot skillfully executed an emergency landing, ensuring the safety of all passengers, and there were no reports of any serious injuries.
The Boeing 737 Max 9 faced global grounding by the Federal Aviation Administration after the incident, affecting around 171 aircraft. However, Alaska Airlines resumed operations of the Max 9 after conducting thorough fleet inspections on January 26th.
In February, the National Transportation Safety Board released a preliminary report revealing that four bolts, which were intended to secure the door plug on 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 decisive action by intensifying its scrutiny of Boeing and initiating an audit of the company’s production and manufacturing processes.
Last week, Boeing made the announcement that its CEO, Dave Calhoun, will be stepping down at the end of the year amidst the fallout of the door plug failure.
According to a recent statement made by Calhoun, he expressed confidence in the company’s ability to overcome the challenges it currently faces. He acknowledged that the world is watching and emphasized the determination to emerge from this situation as a stronger organization. Calhoun affirmed the company’s unwavering commitment to completing the collective efforts aimed at restoring stability in the wake of the significant hurdles faced over the past five years. Furthermore, he emphasized the importance of prioritizing safety and quality in all aspects of the company’s operations.
Read More:
- Stein supports Biden administration’s legal action against Idaho
- Republicans are denouncing Evers’ wave of vetoes