Turkish Airlines, Boeing reach 737 Max aircraft compensation deal


FILE PHOTO: The Boeing logo at the New York Stock Exchange in New York, U.S., August 7, 2019. REUTERS/Brendan McDermid/File Photo

December 31, 2019

ISTANBUL (Reuters) – Turkish Airlines <THYAO.IS> and Boeing Co <BA.N> have agreed on compensation for certain losses caused by grounded and undelivered Boeing 737 Max aircraft, the Turkish airline said on Tuesday.

The statement to the Istanbul stock exchange did not specify the deal’s value, but Hurriyet newspaper said it was worth $225 million: $150 million in compensation and $75 million covering things such as spare parts and training.

Turkish Airlines has 24 Boeing 737 MAX planes in its fleet. The 737 MAX has been grounded since March after two crashes in Indonesia and Ethiopia killed 346 people within five months, costing the plane manufacturer more than $9 billion so far.

In December, a media report had said Turkish Airlines was preparing to open a court case against Boeing in relation to its losses.

Last week, Boeing fired chief executive Dennis Muilenburg after the company repeatedly failed to contain the fallout from the crashes, which halted output of its best-selling jetliner and tarnished its reputation.

Boeing acknowledged this month it would not be able to reach its 2019 targets and announced it would halt 737 MAX production in January.

(Additional reporting by Ceyda Caglayan; Writing by Daren Butler; Editing by Gerry Doyle)

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