06 January, 2020

American Airlines reaches compensation deal with Boeing over 737 Max grounding

An Update on the Boeing 737 Max.

The US mega-carrier, American Airlines confirmed today that it has reached a deal with Boeing over compensation for the groundings of the 737 Max aircraft. 

The full details of the compensation package has not been divulged but is expected to include a cash amount and assistance with training and an array of spare parts. The carrier has said that it will share part of that cash payout (an additional $30 million) with its staff members as part of the 2019 profit-sharing programme. The airline expects the profit-sharing programme to be distributed to American’s team members in March 2020.

“Despite the ongoing challenges the grounding has brought, American Airlines team members continue to do an incredible job caring for our customers,” said American’s Chairman and CEO Doug Parker. “Our ability as an airline to weather these unprecedented times is thanks to our phenomenal team, and it was important to us that we get a deal done before the end of the year. On behalf of the Board of Directors, we are proud to take the step of including this compensation in our 2019 profit-sharing program, even though the compensation will be received over several years.”

American says it will continue to talk Boeing regarding compensation for damages related to the MAX grounding beyond 2019, and any future compensation will be similarly shared with its team members.

The airline is still expecting to be able to start flying the 737 Max aircraft from 7th April this year,  although aviation analysts in France, Germany and the UK doubt the aircraft will be declared airworthy by that date. 

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