Boeing To Compensate United Airlines For MAX 9 Grounding

(MENAFN- Bangladesh Monitor)


United Airlines will receive compensation from aircraftmaker Boeing
for financial
damages incurred in the first quarter due to the grounding of 737 MAX 9 aircraft, the carrier said.

U.S. regulators had in January grounded some Boeing
737 MAX 9 aircraft for about three weeks for safety checks after a cabin panel blowout on an Alaska Airlines-operated MAX 9 jet.

The incident had forced United Airlines - a prominent Boeing
BA.N customer - to temporarily suspend service on all 79 of its 737 MAX 9 aircraft, which resulted in a $200 million hit for the airline in the first quarter.

United Airlines said in a filing on Wednesday that a confidential agreement with Boeing
will provide it with“credit memos” for future purchases to make up for the grounding damages and the rescheduling of deliveries.

A credit memo is an official written acknowledgement that money is owed back to a customer.

As of Feb. 5, 78 of the 79 737 MAX 9 aircraft operated by United Airlines had returned to service after receiving a final approval from the Federal Aviation

In response to a request for comment, Boeing
pointed to its CFO Brian West's remarks at a conference in March.

West had then said“customer consideration is going to manifest itself in the quarter (after the grounding), in the P&L and we've got to take care of that.”

Alaska Air had said earlier in April that Boeing
paid about $160 million to the airline in the first quarter as initial compensation to address the hit from the grounding.

The mid-air panel blowout has undermined the reputation of Boeing
, which has undergone a management shakeup and seen U.S. regulators put curbs on its production while its deliveries fell by half in March.


-To-Compensate-United-Airlines-For-MAX-9-Grounding" target="_blank">


Bangladesh Monitor

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.