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737 MAX fiasco fallout: Boeing to pay Turkish Airlines $225 million

737 MAX fiasco fallout: Boeing to pay Turkish Airlines $225 million

Turkish Airlines officials announced today that Turkey’s national flag carrier has reached an agreement with Boeing regarding “financial compensation” for losses incurred by the airline due to grounded and undelivered 737 MAX planes.

The announcement comes after Turkish Airlines said earlier this month it was preparing to bring a lawsuit against Boeing due to uncertainty regarding the 737 MAX and its losses.

One of Boeing’s biggest customers, Turkish Airlines, did not specify how much Boeing will shell out. According to some reports, the payout will total $225 million, with $150 million in compensation and $75 million covering things such as spare parts and training.

The Turkish flagship-carrier has 24 Boeing 737 MAX planes in its fleet. The 737 MAX has been grounded since March, after two crashes just five months apart in Indonesia and Ethiopia killed 346 people.

Last week Boeing fired its CEO Dennis Muilenburg, explaining the move as “necessary to restore confidence” in the firm, as it struggles to restore trust of investors, clients, and aviation regulators.

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