Tuesday, 31 December 2019

$225 million compensation for Turkish Airlines over 737 Max groundings

$225 million compensation for Turkish Airlines over 737 Max groundings

Turkish Airlines is reported to have agreed on a deal with US plane manufacturer Boeing over compensation for losses accrued over the ground of the airlines 737 Max fleet, said to be as much as US$225 million 

Turkish Airlines has 24 Boeing 737 Max aircraft which have been grounded since the two fatal crashes took the lives of over 340 people.  Earlier in December, it was reported that the carrier had started legal proceedings against Boeing for compensation over the losses.  Today, the airline released a brief note to investors that it had reached an agreement with Boeing - "Turkish Airlines and Boeing came to an agreement concerning compensation for certain losses caused by the grounded and undelivered Boeing 737 Max aircraft."   

The true amount of compensation that has been agreed upon has not been disclosed at this stage, however, local news outlet, Hurriyet has reported the deal is for approximately $225 million. This is made up of  $150 million in compensation and a further $75 million to cover incidental items such as spare parts and crew training.

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