Boeing compensates Alaska Airlines $160 million for door plug blowout

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Alaska Airlines had to ground its Boeing 737 Max 9 planes for three weeks after the door plug blowout on Jan. 5.
Alaska Airlines had to ground its Boeing 737 Max 9 planes for three weeks after the door plug blowout on Jan. 5. Photo Credit: Alaska Airlines

Boeing has paid $160 million in compensation to Alaska Airlines for the exit plug blowout on a Jan. 5 Alaska flight out of Portland, Ore.

The figure is equal to the amount Alaska Airlines says it lost in pre-tax profit due to the door plug incident and its aftermath, which included a three-week grounding of Alaska's fleet of 65 Boeing 737 Max 9 planes. 

"Additional compensation is expected to be provided beyond Q1, the complete terms of which are confidential," Alaska said in a regulatory filing. 

The National Transportation Safety Board (NTSB) has concluded that the exit door plug, which blew out at 16,000 feet shortly after takeoff, was delivered to Alaska Airlines without four bolts needed to hold it in place. 

The incident has sparked lawsuits against Alaska Airlines and Boeing, and has led to a wave of new scrutiny and leadership turnover at Boeing.

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