Boeing gives Alaska Airlines $61million in credit as compensation for 737 ... trends now
Boeing has given Alaska Airlines $61million in supplier credit memos for the disaster which temporarily grounded a fleet of 737 MAX 9 jets.
The airline suffered a near-catastrophe when a door plug blew out at 16,000 feet on a flight from Oregon on January 5 and it led to an emergency landing.
It led to the US Federal Aviation Administration grounding 171 of the 737 MAX 9 jets for about three weeks.
Boeing provided $61 million in supplier credit to Alaska Airlines as additional compensation after handing them $162 million in cash in the first quarter.
The credit memos can be used to make future purchases at Boeing, Alaska said in its quarterly report on Friday.
Boeing has given Alaska Airlines $61million in supplier credit memos for the disaster which temporarily grounded a fleet of 737 MAX 9 jets
The airline suffered a near-catastrophe when a door plug blew out at 16,000 feet on a flight from Oregon on January 5 and it led to an emergency landing
Boeing provided $61 million in supplier credit to Alaska Airlines as additional compensation after handing them $162 million in cash in the first quarter
Boeing is also compensating United Airlines, a prominent customer, to address the financial damages related to the grounding.
There were 154 flights by the Alaska Airlines Boeing 737 MAX 9 before the January 5 mid-air emergency.
The previous $162million provided to the airline was equal to the revenue lost according to a filing from the airline.
The Flight 1282 blowout on January 5 as the plane took off from Portland, Oregon left a gaping hole in the side of the aircraft, and prompted wide-ranging federal investigations into Boeing's production process.
It also forced United to temporarily suspend service on all 79 of its 737 MAX 9 aircraft, which resulted in a $200million hit in the first quarter.
A National Transportation Safety Board (NTSB) report said that the January 5 incident was down to four crucial bolds being missing from the panel which blew out.
An audit by the FAA of both Boeing and Spirit AeroSystems 'found multiple instances where the companies allegedly failed to comply with manufacturing quality control requirements' in March.
