Icelandair, Boeing reach interim agreement on MAX compensation
Icelandair has reached an interim compensation agreement with Boeing to cover losses incurred by the Boeing 737 MAX grounding, which has already had a US$140m impact on the airline’s EBIT. Updating the markets, Icelandair said the confidential compensation agreement “covers a fraction of the company’s total loss” from the grounding. Icelandair estimated a $140m EBIT hit for the period to Aug 1, but added this figure has since increased because the MAX is still not flying. Talks with Boeing over a wider compensation settlement for the overall flight suspension are ongoing. Aug 16, Icelandair said it was not anticipating the 737 MAX to return to service until the end of Dec 2019. Icelandair has brought in 5 leased aircraft over the summer to minimise the impact of the MAX suspension. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-09-25/unaligned/icelandair-boeing-reach-interim-agreement-on-max-compensation
https://portal.staralliance.com/cms/logo.png
Icelandair, Boeing reach interim agreement on MAX compensation
Icelandair has reached an interim compensation agreement with Boeing to cover losses incurred by the Boeing 737 MAX grounding, which has already had a US$140m impact on the airline’s EBIT. Updating the markets, Icelandair said the confidential compensation agreement “covers a fraction of the company’s total loss” from the grounding. Icelandair estimated a $140m EBIT hit for the period to Aug 1, but added this figure has since increased because the MAX is still not flying. Talks with Boeing over a wider compensation settlement for the overall flight suspension are ongoing. Aug 16, Icelandair said it was not anticipating the 737 MAX to return to service until the end of Dec 2019. Icelandair has brought in 5 leased aircraft over the summer to minimise the impact of the MAX suspension. <br/>
