‘SORRY’

Alaska Air Gets $160 Million From Boeing Over Door Blowout Fiasco

The airline said it took a major financial hit in the first quarter after a door plug ripped off a plane in mid-air.

Alaska Air has taken a $160 million payment from manufacturer Boeing as part of a settlement for damages the airline took after a freak mid-air accident in January when a door plug ripped off a plane. That fiasco caused the grounding of Alaska’s entire 737 Max 9 fleet for weeks and, according to the airline, resulted in lost bookings and financial underperformance in the first quarter. The $160 million consolation may not be the end of Boeing’s payouts—the airline said it expected more compensation but didn’t give details as to when or how much money it expected to receive. Boeing’s quality-control woes have only grown since the door plug incident, which preceded a string of other highly publicized blunders including loose wheels, window cracks, and engine failures, which plagued other airlines such as Delta and United. Last week, Boeing CEO Dave Calhoun announced he would step down amid the safety failures, reflecting the unexpected turbulence the manufacturer has faced this year.