Friday, 20 September 2019

Financial effects of Boeing 737-MAX suspension according to Icelandair as it strikes a deal for compensation

It is no surprise that the grounding of the Boeing 737 Max aircraft has cost airlines a fortune and Icelandair is no exception.  So far the total cost of the suspension on the Icelandic carrier has been USD $140 million as of 1st August and has increased during recent months since the suspension is still ongoing. 

Iceland air has now confirmed it has reached an interim agreement with Boeing regarding compensation which covers a fraction of the Company’s total loss due to the suspension of the Boeing 737-MAX aircraft. The details of the agreement are confidential, however, sources say is less than 10% of the firm's cost. Icelandair Group has also stated today that it will continue its discussions with "Boeing regarding compensation due to the financial effects of the Boeing 737-MAX suspension. "

The airline also celebrated the one-millionth member of its Saga Club frequent flyer programme. 

Steadily growing since 1992 Icelandair’s frequent flyer program, Icelandair Saga Club, received its millionth member in August. Seattle-based Hayley Nichols became the millionth person to join the Saga Club and won 1,000,000 Saga Points and a Saga Gold membership.

Hayley had never flown with us before and when looking for a flight from London to Seattle she found that Icelandair was the least expensive option. Her flight to the US included a brief layover in Keflavík. Icelandair flies daily between Keflavík and Seattle and in 2019 we celebrate 10 years of an unbroken flying-streak on this route. It’s a pleasant coincidence that our millionth Saga Club member was a passenger on the anniversary route.

“I had a great experience travelling with Icelandair. The plane was well-kept, and I felt like I had plenty of legroom even though I booked economy seating. All of the airline employees at the gate and on the flight were nice and kept everything running smoothly,” Hayley remembers her flight.

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