TUI agrees for a compensation deal with Boeing, delays 737 MAX orders
Europe’s biggest travel company TUI Group (TUIT.L) stated on Wednesday that it has agreed for a compensation package with aircraft maker Boeing Co. (BA.N) to shield its finances from the impact of the coronavirus pandemic. The deal includes a slower delivery of Boeing’s grounded 737 MAX planes.
The Germany-based company said in a statement that the deal covered compensation for “significant portion of the financial impact” suffered by the business after the MAX fleet was grounded in March last year due to two crashes that killed 346 people.
“The agreement provides TUI with compensation for a large part of costs that were incurred due to the grounding of the 737 MAX fleet,” TUI Group’s Executive Chairman Fritz Joussen said.
According to TUI, the financial terms of the said agreement are still confidential to the public.