Boeing compensation to Alaska includes custody shift of Flight 1282 jet

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At the end of March, Alaska Airlines signed a $162 million compensation agreement with Boeing following the accident aboard Flight 1282 and the subsequent grounding that sidelined roughly 30% of its mainline fleet for three weeks in January.

The cash package was not specifically itemized and terms between Boeing and the airline were confidential, according to regulatory filings. However, as part of that agreement, Alaska and Boeing agreed to shift custody of the four-month old 737 Max 9 accident aircraft back to the manufacturer, according to two people briefed on the terms of the settlement.

Related: U.S. airlines, fed up, forced change in the Boeing C-suite

A spokeswoman for Alaska confirmed in a statement to The Air Current that “Boeing has agreed to take responsibility for storage and maintenance of the aircraft and will move the plane to their property at Portland Int’l Airport. This frees up our maintenance technicians to focus their work on our operational fleet.”

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Jon Ostrower
Jon Ostrower is Editor-in-chief of The Air Current, where he leads coverage of the global aerospace and aviation industries. Prior to launching TAC in June 2018, Mr. Ostrower served as Aviation Editor for CNN Worldwide, guiding the network’s global coverage of the business and operations of aviation. Mr. Ostrower joined CNN in 2016 following four and a half years at the Wall Street Journal. Based first in Chicago and then in Washington, D.C., he covered Boeing, aviation safety, and the business of global aerospace. Before that, Mr. Ostrower was editor of FlightBlogger for Flightglobal and Flight International Magazine covering the development of the Boeing 787 Dreamliner and other new aircraft programs from 2007 to 2012. He is also an instructor at the University of Southern California in the Viterbi School of Engineering's Aviation Safety and Security program. Mr. Ostrower, a Boston native, graduated from The George Washington University’s School of Media and Public Affairs with a bachelor’s degree in Political Communication. He is based in Seattle.
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