The Boeing “Secret” Compensation Terms

by Business Today

Alaska Air Group has revealed that they have received a “preliminary compensation amount” from Boeing “to address the financial losses from flight 1282 and the suspension of the 737-9 MAX.” They claim that the incident has cost them around $160 million in pre-tax profits in the first quarter of this year, mainly due to reduced revenue, unstable operations, and costs associated with restoring flight operations.

The airline has also stated that Boeing is expected to provide additional compensation based on undisclosed terms. In response to ABC News’ request for comment, Boeing reiterated the statement made by CFO Brian West last month, stating that “customer consideration will be clearly demonstrated.”

“We have to resolve the issue, and we are making efforts. We continue to stand behind our customers with that responsibility,” affirmed West on March 20.

Flight 1282 of Alaska Airlines experienced a fuselage rupture a few minutes after takeoff from Portland International Airport on January 5. The aircraft made an emergency landing safely, and no serious injuries were reported.

Following this incident, the Federal Aviation Administration (FAA) issued a worldwide grounding order for approximately 171 Max 9 aircraft.

Alaska Airlines resumed operations with its Boeing 737 Max 9 fleet after an inspection on January 26.

According to a preliminary report released by the National Transportation Safety Board (NTSB) in February, four bolts designed to prevent the upper fuselage from detaching from the Boeing 737 Max 9 were missing prior to the flight.

The incident is still under investigation by the NTSB, and the U.S. Department of Justice is also involved.

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