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Alaska Air says Boeing issued $61 million in credit memos to address grounding hit
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Alaska Air says Boeing issued $61 million in credit memos to address grounding hit
May 3, 2024 4:59 AM

May 3 (Reuters) - Alaska Air Group ( ALK ) has received

$61 million in supplier credit memos from Boeing ( BA ) as

additional compensation for the hit from a temporary grounding

of 737 MAX 9 jets, the carrier said on Friday.

The airline had received $162 million in cash as

compensation from the planemaker in the first quarter.

An Alaska Airlines-operated MAX 9 jet experienced a mid-air

cabin panel blowout in January, which led to the U.S. Federal

Aviation Administration grounding 171 of the aircraft for about

three weeks.

The credit memos can be used to make future purchases at

Boeing ( BA ), Alaska said in its quarterly report on Friday.

Boeing ( BA ) is also compensating United Airlines - a

prominent customer - to address the financial damages related to

the grounding.

The incident had forced United to temporarily suspend

service on all 79 of its 737 MAX 9 aircraft, which resulted in a

$200 million hit in the first quarter.

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