January 7, 2020 / 11:33 AM / 14 days ago

Factbox: Boeing's 737 MAX compensation deals with airlines

(Reuters) - American Airlines (AAL.O) is the latest airline to reach a settlement with Boeing Co (BA.N) regarding the grounding of the Boeing 737 MAX airliner.

FILE PHOTO: An employee works near a Boeing 737 Max aircraft at Boeing's 737 Max production facility in Renton, Washington, U.S. December 16, 2019. REUTERS/Lindsey Wasson

Boeing’s best-selling plane was grounded in March 2019 after two fatal crashes in which all 346 passengers and crew were killed.

There were 387 737 MAX planes being operated by 59 airlines at the time and a backlog of orders worth more than $500 billion at list prices.

Following are the airlines that have reached compensation agreements with the planemaker (in alphabetical order):

AEROMEXICO (AEROMEX.MX)

Aeromexico said on Jan. 6 it had reached a compensation agreement with Boeing over the grounding of the 737 MAX. The Mexican airline did not disclose the size of the payment and said it remained in talks with Boeing and regulatory authorities.

AMERICAN AIRLINES (AAL.O)

The largest U.S. airline said on Jan. 6 it had reached a confidential agreement with Boeing. It said the compensation would be received over several years and that it would use more than $30 million of the compensation for its 2019 employee profit-sharing program.

SOUTHWEST AIRLINES (LUV.N)

The world’s largest 737 MAX operator said in December that it had reached a confidential agreement with Boeing for a portion of a projected $830 million hit to its 2019 operating income caused by the grounding of the 737 MAX.

TURKISH AIRLINES (THYAO.IS)

Turkish said on Dec. 31 that it had come to an agreement with Boeing concerning compensation for certain losses caused by grounded and non-delivery Boeing 737 MAX aircraft.

The airline did not specify the size of the payment but Turkey’s Hurriyet newspaper reported it was worth $225 million.

Reporting by Tommy Lund and Milla Nissi; editing by Tomasz Janowski and Jason Neely

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