Latest News Site

News

Boeing to Compensate Icelandair for 737 MAX Grounding Costs

Boeing to Compensate Icelandair for 737 MAX Grounding Costs
September 21
08:44 2019
  • Icelandair is among the first carriers to reach a deal with Boeing as aircraft remains out of service

By : Doug Cameron

Icelandair Group Hf said Friday it reached an agreement for Boeing Co. to cover costs associated with the airline’s fleet of six grounded 737 MAX jets—one of the first carriers to disclose such a settlement since the planes stopped flying in March.

The airline wouldn’t disclose the size of the settlement, part of $5.6 billion that Boeing has set aside for MAX customers.

Icelandair’s previous estimates of the cost from grounding were around $1.3 million a day.

Boeing declined to comment on the size of the deal. “Timing, amount and form of potential concessions and other considerations will be unique for each customer,” it said in a statement.

Boeing is in talks with airlines and lessors over compensation for more than 380 MAX jets that have been grounded for more than six months following two fatal crashes, as well as hundreds more planes that can’t be delivered until regulators lift a flight ban on the aircraft.

The aerospace giant took a $5.6 billion charge against its second quarter earnings to cover payments that are expected to be a mix of cash and discounts on aircraft features, services and delivery positions spread over a number of years. Boeing has said insurance policies would cover $500 million in customer compensation, as well as any damages paid to the families of the 346 victims of the twin crashes

The MAX grounding has forced the cancellation of thousands of flights, and independent estimates put the final damages far higher than Boeing’s initial charge. Consultant IBA Group Ltd. calculated a daily cost of $150,000 for each plane, which would total around $9 billion to date for the grounded fleet alone.

Icelandair is still making lease payments on three rented MAX jets. It rented five replacement aircraft during the busy summer season.

Boeing has yet to submit fixes to the flight control system of the MAX to regulators for approval. The company continues to plan for regulators to approve the plane to fly again “early” in the fourth quarter, though most carriers don’t expect it to resume service until early next year.

Courtesy : Wall Street Journal

TBZ
Annie’s Closet
G.E.L Shop Association
kallu
Novelty Fashion Mall
Fly Kitchen
Harsha Plastics
Status
Akash
Swastik Tiles
Reshika Boutique
Paul Opticals
Metro Glass
Krsna Restaurant
Motilal Oswal
Chotanagpur Handloom
Kamalia Sales
Home Essentials
Raymond

About Author

admin_news

admin_news

Related Articles

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment

Sponsored Ad

SPONSORED ADS SPONSORED ADS SPONSORED ADS SPONSORED ADS SPONSORED ADS SPONSORED ADS

LATEST ARTICLES

    भारतीय एवं विश्व इतिहास में 17 अक्टूबर की प्रमुख घटनाएं

भारतीय एवं विश्व इतिहास में 17 अक्टूबर की प्रमुख घटनाएं

0 comment Read Full Article

Subscribe to Our Newsletter