American expects 737 Max grounding cost to rise to US$540m
American Airlines expects its total cost for the grounding of the Boeing 737 Max to be about US$540m in pre-tax earnings in 2019, up from a previous estimate of $400m. The airline took a $140m hit in Q3 alone for the grounding of its fleet of 24 Max aircraft, the company says in its quarterly investor update Thursday. CE Doug Parker says that the airline expects compensation from Boeing for the losses it has incurred, and “wants to make sure that Boeing’s shareholders share the cost of Boeing’s failures, not American’s shareholders.” Negotiations on this compensation are “underway, early, productive,” Parker adds. “There is still no real clarity at this point, but we are highly confident that the losses that AA incurred will not be incurred by AA shareholders.” <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-10-25/oneworld/american-expects-737-max-grounding-cost-to-rise-to-us-540m
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American expects 737 Max grounding cost to rise to US$540m
American Airlines expects its total cost for the grounding of the Boeing 737 Max to be about US$540m in pre-tax earnings in 2019, up from a previous estimate of $400m. The airline took a $140m hit in Q3 alone for the grounding of its fleet of 24 Max aircraft, the company says in its quarterly investor update Thursday. CE Doug Parker says that the airline expects compensation from Boeing for the losses it has incurred, and “wants to make sure that Boeing’s shareholders share the cost of Boeing’s failures, not American’s shareholders.” Negotiations on this compensation are “underway, early, productive,” Parker adds. “There is still no real clarity at this point, but we are highly confident that the losses that AA incurred will not be incurred by AA shareholders.” <br/>
