Tui and Boeing agree deal on 737 Max payout and delivery delays

The holiday operator Tui has agreed a deal with Boeing over compensation for the grounding of its 737 Max planes and to delay deliveries of new planes. Deliveries of 61 new planes to the Anglo-German group will be delayed by two years on average, and Boeing will pay most of the compensation within the next two years. Further details of the compensation have not been disclosed. All Boeing 737 Max planes have been grounded since March 2019 after design flaws contributed to two fatal crashes. Shares in Tui rose by 10% on Wednesday as investors welcomed the deal, which the company said would ease financial pressures. Tui has cancelled all holidays until at least 1 July and plans to make 8,000 people redundant. Fritz Joussen, the CE of Tui Group, said: “The new delivery schedule gives us considerable flexibility because we will have fewer new aircraft delivered in the next years. This enables Tui to rapidly adapt its fleet growth to the currently challenging market environment.” <br/>