To convince Southwest to buy the Boeing 737 MAX, the plane maker reassured the airline that pilots would not need expensive simulator training and backed up the promise with a $1m per plane rebate if training was needed, US lawmakers said Wednesday. The 737 MAX training requirements were a topic of questioning at a hearing centered on Boeing’s development of the aircraft that has come under scrutiny following two fatal crashes. Representative Peter DeFazio, who chairs the House Transportation and Infrastructure Committee, asked Boeing Chief Executive Dennis Muilenburg about the Southwest rebate, which he said would have covered 280 orders for the 737 MAX. Muilenburg said he “believed that was part of the contract structure we had with Southwest.” He added “it’s not uncommon for us to have incentive clauses in these contracts.” A spokesman for Southwest, one of Boeing’s largest 737 MAX customers, said he did not have specific details on the contractual agreement with Boeing but said it was a standard agreement on 737 MAX aircraft delivery. “We have customary language in each of our delivery contracts to hold parties accountable to previously determined benefits of launching a new aircraft type, incorporating guarantees for various items into every contract from the 737-300s to the 737 NGs, a standard practice that is not new to us, the industry or the MAX aircraft,” Southwest said. DeFazio said that if the US FAA had required simulator training on the 737 MAX, it “would have cost Boeing hundreds of millions of dollars and given its competitor an advantage.”<br/>
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Peruvian Airlines and Star Perú are set to merge after both were purchased by investment fund Global Investment Platform, the fund said Wednesday. The merger would give Global Investment Platform just under one-fifth of the local market, which is currently dominated by LATAM airlines, the region´s largest carrier, the fund said. The fund announced late Wednesday it had purchased Star Peru. It had acquired Peruvian Airlines several weeks ago, though Peruvian authorities required that the airline suspend flights amid a dispute over unpaid taxes. Global Investment Platform said it would invest $150 million so that Peruvian Airlines could resume operations. The fund expects the airline will begin flying again in two or three weeks, according to the statement.<br/>
South Korean carrier Air Premia announced on Wednesday a provisional deal to buy five Boeing 787-9 Dreamliner jets worth $1.4b at list prices, becoming the latest new airline to enter the highly competitive low-cost, long-haul market. The deal follows an agreement to lease three 787-9 jets from Air Lease Corp as Air Premia prepares to start flying in September 2020. It will seek another two 787-9s by 2024. Planned destinations include Vietnam and Hong Kong next year and Los Angeles, which has a large American Korean community and business ties, in 2021. It is one of several emerging players in South Korea's expanding but highly competitive low-cost market. CE Peter Sim described Air Premia as a "hybrid" airline offering greater comfort than low-cost rivals but lower fares than domestic giants Korean Air and Asiana.<br/>It will offer two classes including Premium Economy and a coach class still with extra legroom, called Economy Plus. "We are going to offer a slightly lower price than full-service carriers with a better product," Sim said. The airline is targeting customers such as empty-nesters in their 50s or 60s with an appetite for long trips in some comfort but unable to afford traditional premium fares.<br/>