American Airlines reported that they have reached an agreement with Boeing over damages caused by the grounding of all its 737 MAX aircraft.
Some details of the agreement are confidential, but Boeing will be making payments to American Airlines over the next few years.
Boeing has agreed to start sending regular compensatory payments to American Airlines. American, the biggest US airline, will reportedly set aside the funds for several purposes. The airline announced that it will use $30 million in payments from Boeing for their employee profit-sharing program. The company also announced that the payments would continue for the next few years as laid out in the confidential parts of their settlement.
For now, American Airlines has stated the payments will not affect their fourth quarter 2019 earnings report. They also stated that compensation talks are expected to continue into 2020. The airline’s flight attendant’s union has welcomed the news and their airline’s commitment to direct part of the compensation funds to the company’s workforce.
Boeing has yet to release any comments regarding the details of its settlement with American Airlines. The last few weeks have seen Boeing come to several confidential settlements with smaller US airlines. Now the company has come to an arrangement with its biggest US customer.
Boeing has been dealing with the aftermath of two of its planes crashing due to a technical error in five months. The 737 MAX was the company’s best-selling aircraft.