Boeing Gives Alaska Airlines $61 Million in Credit Memos to Compensate for Damages Caused by MAX 9 Grounding
By Jace Dela Cruz
May 04, 2024 03:27 AM EDT
May 04, 2024 03:27 AM EDT
Alaska Air Group disclosed on Friday that it received $61 million in supplier credit memos from Boeing as compensation for financial damages incurred due to a temporary grounding of 737 MAX 9 jets.
In its quarterly, Alaska Air said the credit memos can be used on future purchases at Boeing.
According to Reuters, Alaska Air had already received $162 million in cash as compensation from Boeing in the first quarter.
In January, the US Federal Aviation Administration grounded 171 Boeing 737 MAX 9 aircraft for about three weeks for safety checks after an Alaska Airlines-operated MAX 9 jet experienced a mid-air cabin panel blowout.
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United Airlines also received compensation from Boeing in the form of "credit memos" for the financial damages it sustained from the grounding of the 737 MAX 9 aircraft.
United Airlines had temporarily suspended service on all 79 of its 737 MAX 9 jets, which resulted in a $200 million loss in the first quarter.
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