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Alaska Receives Compensation from Boeing Over Door Plug Blowout

Alaska Airlines says they received $160 million as “initial compensation” over the door plug blowout aboard Alaska Airlines Flight 1282.
The Boeing Company has provided payment to Alaska Airlines for the door plug blowout that took place aboard one of their Boeing 737 MAX airframes in January 2024.


The Associated Press reports the Chicago-based aerospace giant paid $160 million to Alaska as “initial compensation” with more money on the way.


First Compensation Payment Covers Loss Related to Incident

According to the Seattle-based airline, the $160 million payment is related to losses after an unsecured door plug fell off Alaska Airlines Flight 1282 in January 2024. This includes loss of revenue from not having the aircraft in service and the subsequent grounding of the 737 MAX 9, along with the cost of repairs for the aircraft.


While this is the first payment offered to Alaska, Boeing will still owe the airline more money later down the line. Alaska says the terms for future compensation will remain confidential.


The payment is the latest acknowledgement on how the blowout directly affected the airline’s financial performance. Alaska was also forced to cancel several flights when the 737 MAX-9 was grounded both by the airline and then by the Federal Aviation Administration as they were re-inspected for proper door plug installation.


Additionally, Boeing could be on the hook for additional compensation to other airlines due to the grounding and missing delivery dates on new aircraft. United Airlines is now asking pilots to take unpaid time off as Boeing aircraft are not being delivered on time.


Although the payment is a step forward for Alaska’s recovery, the investigation is far from complete. NBC News reports flyers aboard the Alaska Flight 1282 are getting contact from the Federal Bureau of Investigation alerting them they could be victim of a crime.


Stay up to date with the Boeing 737 MAX-9 fallout on the Flyertalk fourms.


Feature image courtesy: Nick Dean/Flickr/CC BY-SA 2.0 DEED

RedElmo April 10, 2024

what!? Isn't an airplane only $90M the pay out penalty is like 2-3X the price of what the plane cost. Why would Boeing not get out of this business?