Boeing pays out Alaska Airlines amid grounding of their planes

Aviation giant Boeing has paid Alaska Airlines $160 million in compensation for the grounding of its 737 Max 9 planes after a door panel blew off an aircraft in early January.

According to a recent filing from the airline, Boeing paid the sum because the airline’s first quarter performance was “significantly impacted” when the door panel fell off the aircraft after taking off from a Portland, Ore., airport. The incident resulted in a grounding of its Boeing 737 Max 9 fleet.

The airline said it expects Boeing to provide additional compensation, beyond the first quarter sum.

Despite the door incident and the grounding, Alaska Airlines said it experienced “strong demand within the quarter, and continued recovery of West Coast business travel.”

“Although we did experience some book away following the accident and 737-9 MAX grounding, February and March both finished above our original pre-grounding expectations due to these core improvements,” the filing said.

The filing is a first look at what Boeing is doing to make up for several months of issues and increased scrutiny from customers and government agencies.

The Department of Justice (DOJ) launched a criminal investigation into Boeing in early March after the midair blowout. The DOJ has conducted interviews with pilots and flight attendants on the flight after the company admitted that it couldn’t find records for work performed on the door panel, which the National Transportation Safety Board (NTSB) requested.

The NTSB launched an investigation into the incident shortly after it happened. The Federal Aviation Administration (FAA) is also investigating overall safety at Boeing. FAA Administrator Michael Whitaker said there are issues at Boeing “around the safety culture.”

Congress has also eyed more government oversight for Boeing after the blowout and other high-profile accidents in recent months. Lawmakers have made it clear they want to see changes soon, with possible legislation on the way to make sure it happens.