Boeing gives Ryanair Compensation for Millions of Euros for 737 MAX
Boeing gives Ryanair Compensation for Millions of Euros for 737 MAX. The Irish price fighter Ryanair has reached a deal with aircraft manufacturer Boeing about compensation for the grounded 737 MAX aircraft.
The budget airline would receive “hundreds of millions of euros” compensation, reports the Irish newspaper Irish Independent.
Boeing would not have to transfer money to Ryanair. The compensation would be given in the form of a discount on the amount that the aircraft manufacturer still owed from Ryanair. Devices of the 737 MAX type from Boeing have been on the ground worldwide since March.
On March 10, such a plane from Ethiopian Airlines crashed, killing all passengers. A plane from the Indonesian Lion Air also crashed at the end of last year. Both accidents are said to be due to an over-abundant safety system that repeatedly pressed down the nose of the aircraft.
Boeing will have to meet with more airlines in the coming months. The losses accumulate for the aviation manufacturer. The manufacturer will have to compensate the airline companies for keeping the 371 copies of the 737 Max on the ground.
Aviation analyst Cai von Rumohr estimated with the American news channel CNN that this already costs Boeing 2 billion dollars. Now that the American regulator FAA keeps the device on the ground longer, that amount will increase considerably.
The American aircraft manufacturer was forced to reduce its production of the new aircraft last month: from 52 to 42 aircraft per month. Several airlines have openly threatened to reverse orders for new aircraft. So far, only Indonesian Garuda has done this. The company had ordered 50 aircraft for about $ 4.9 billion.