When Southwest Airlines reported its quarterly earnings last week, the company included a $428 million payment received from Boeing to cover a variety of ongoing issues surrounding the grounded 737 MAX aircraft. The MAX has been grounded since March 2019 following two accidents, one in 2018, the other in 2019. Southwest had already accepted delivery of 34 737 MAX aircraft at the time of the grounding and planned to accept an additional 41 before the end of last year.
Boeing Pays Southwest for Grounded MAX Aircraft
Key Takeaways:
- Southwest Airlines received $428 million from Boeing as compensation for issues related to the 737 MAX aircraft, which has been grounded since March 2019.
- Southwest had already taken delivery of 34 737 MAX planes and expected 41 more before the grounding.
- Although Boeing aims for the 737 MAX to be recertified by year-end, Southwest intends to renegotiate its future aircraft purchases, signaling continued financial implications.
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