Turkish Airlines (THYAO:TI) has reportedly reached a compensation agreement with Boeing Aircraft (NYSE: BA) following the extended grounding of the 737 MAX. While the details of the settlement were not released, a Turkish newspaper reported the package is worth $225 million.
Richard Aboulafia of aviation consulting firm Teal Group said. “Either they (Turkish Airlines) have a pretty good feeling for when this will end, or the carrier has somehow lined up alternative capacity to mitigate the damage at this point.”
Other airlines, including Southwest Airlines (NYSE: LUV), the largest operators of the Boeing 737 aircraft, and European charter airline TUI, have already reached “confidential agreements” with Boeing.
Several of these “deals” reportedly include “future services” that would allow Boeing to spread settlement costs over several years. Aboulafia added, “I expect them to take this approach to future settlements.”