Boeing pays Alaska Airlines $160 million in cash in 'initial payment' following mid-air blowout

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Boeing pays Alaska Airlines $160 million in cash in 'initial payment' following mid-air blowout
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Alaska Airlines said Boeing has paid the carrier $160 million in “initial compensation' after a door plug blowout on a 737-9 MAX plane in Jan.

Boeing has paid Alaska Airlines approximately $160 million in compensation following the Alaska Airlines Boeing Max 9 midair blowout in January. According to a SEC filing, the money was "initial compensation" from Boeing "to address the financial damages incurred as a result of Flight 1282 and the 737-9 MAX groundings." The airline said that they lost "approximately $160 million" in their first quarter.

The filing said that the $160 million in cash, was "equivalent" to what the airline lost from the Jan. 5 blowout. The airline said that Boeing is "expected" to provide "additional compensation" in the future. The exact amount and its terms are not known at this time. The Jan. 5 incident prompted the Federal Aviation Administration to ground similar Boeing 737 Max 9 jetliners to allow for inspections, which resulted in thousands of flight cancelations.

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