Alaska Airlines says Boeing paid it $160 million for 737 Max 9 grounding

Boeing
paid


Alaska
Airlines
$160
million
in
compensation
in
the
first
quarter
for
the
grounding
of
the
737
Max
9,
according
to
the
airline.

The
Federal
Aviation
Administration
grounded
the
jets
after
a
door
plug
blew
out
of
a
nearly
new

Boeing
737
Max
9
operated
by
Alaska
when
the
flight
was
at
16,000
feet,
coming
inches
from
another
tragedy
involving
Boeing’s
best-selling
jet.

Alaska
said
in
a

filing
Thursday
that
its
first-quarter “results
were
significantly
impacted
by
Flight
1282
in
January
and
the
Boeing
737-9
MAX
grounding
which
extended
into
February.”

Alaska
said
it
expects
additional
compensation
beyond
the
first
quarter.

Alaska
also
said
demand
was
strong
despite
an
immediate
impact
after
the
accident. “Although
we
did
experience
some
book
away
following
the
accident
and
737-9
MAX
grounding,
February
and
March
both
finished
above
our
original
pre-grounding
expectations
due
to
these
core
improvements,”
it
said.

The
filing
is
an
early
look
at
what
Boeing
is
providing
its
major
customers
due
to
the
Jan.
5
accident,
which
has
led
to
additional
government
scrutiny
and
a
slowdown
in
aircraft
deliveries
and
production.

United
Airlines‘
pilots
union
told
members
last
week
that
the
airline
is
offering
pilots

unpaid
time
off
in
May
because
of
delayed
Boeing
deliveries,
CNBC
reported
earlier
this
week.

Boeing
didn’t
immediately
comment.
The
manufacturer
and
U.S.
airlines
report
first-quarter
results
later
in
April.

Alaska
shares
were
up
more
than
5%
in
morning
trading,
while
Boeing
was
up
1%,
compared
with
a
0.6%
gain
in
the
broader


market.