Alaska Air says Boeing paid US$160 million in compensation after MAX 9 grounding

ALASKA Air Group said on Thursday (Apr 4) Boeing has paid an initial compensation of about US$160 million in the first quarter to address the financial hit the airline took due to temporary grounding of 737 MAX 9 jets.

The payment is equivalent to the lost profits resulting from an accident and grounding in Q1, Alaska said in a filing, adding it expects additional compensation.

An Alaska Air-operated MAX 9 jet experienced a mid-air cabin panel blowout in January, which led the US aviation regulator to order grounding of 171 jets for inspections. The grounding was lifted later that month. REUTERS