Boeing Gives Alaska Airlines $61 Million in Credit Memos to Compensate for Damages Caused by MAX 9 Grounding

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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.

Boeing Gives Alaska Airlines $61 Million in Credit Memos to Compensate for Damages Caused by MAX 9 Grounding
Alaska Air Group disclosed on Friday that it received $61 million in supplier credit memos from Boeing. Mario Tama/Getty Images

Alaska Air Also Receives Cash Compensation From Planemaker 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.

Boeing Is Also Compensating United Airlines

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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Boeing, Alaska Airlines

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