Boeing Pays Alaska Airlines $160 Million for Midair Incident
In a recent development, Boeing has paid Alaska Airlines $160 million as an initial payment for financial damages resulting from a midair door blowout earlier this year. Alaska Airlines reported a loss of approximately $160 million in pretax profit in the first quarter, mainly due to lost revenues, costs from irregular operations, and costs to restore their fleet.
Boeing is expected to provide additional compensation in the future, although the exact amount and timing are not currently known. The Federal Aviation Administration has given Boeing a May 28 deadline to develop a comprehensive action plan to address systemic quality-control issues.
The delivery delays from Boeing have had ripple effects in the airline industry, with United Airlines asking pilots to take voluntary unpaid leave due to an anticipated shortage of airplanes. United Airlines has expressed disappointment with Boeing over delays in the delivery of their new MAX 10 aircraft, impacting their growth projections and ability to expand domestic capacity under their United Next plan.
United has reduced its forecast for MAX 8 and MAX 9 deliveries from Boeing, awaiting upgrades to their fleet. The delays have put a strain on airlines and caused financial losses, leading to concerns within the industry about the impact on operations and future growth plans. Stay tuned to Mazmessenger for further updates on this developing story.
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