ARLINGTON COUNTY: Boeing has paid $160 million to Alaska Air to make up for losses it has so far suffered following a dramatic mid-air blowout in January.
Alaska said the money would address profits lost in the first three months of the year and it expected further payouts in the upcoming months, according to BBC.
Regulators temporarily grounded about two hundred Boeing 737 Max 9’s after a door plug fell from an Alaska Air plane shortly after take-off. Thousands of scheduled flights were cancelled.
However, a law firm which is representing some of the passengers on the Alaska flight has criticised the decision.
Attorney Daniel Laurence said said that apparently, Boeing thinks it more important and urgent to pay those whose corporate profits were at stake, but not those whose lives were in danger and nearly lost.
Airlines are now contending with delivery delays as Boeing slows manufacturing of new planes to try to resolve manufacturing and safety concerns.
In February, budget carrier Ryanair warned tourists faced paying higher fares because of the delays.
United Airlines, which had also warned investors of a financial loss from the grounding, recently asked pilots to volunteer for unpaid leave, because of delivery changes.
Alaska Air’s warning
In January, Alaska warned of a roughly 150 million dollars hit. The airline said taht although it did experience some book away after the accident and 737-9 MAX grounding, February and March both finished above its original pre-grounding expectations.
Boeing has been in crisis since the January 5 emergency, in which passengers on the Alaska Airlines flight from Portland, Oregon and bound for California narrowly escaped serious injury.
