FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.

Boeing Pays Southwest $125 Million for 737 MAX Grounding

by Megan Hill

Jan 13, 2020

Southwest Airlines. Photo: Egurzhui | Dreamstime.com

Feature

Aircraft maker Boeing paid Southwest Airlines $125 million in an out-of-court settlement for damages caused by the safety-related grounding of the airline’s fleet of Boeing 737 MAX jets.

Boeing compensated Southwest for financial losses related to the grounding. Southwest said the amount was based on projected losses in the airline’s 2019 operating income due to service disruptions.

Federal regulators issued the grounding following two fatal crashes involving software problems in the jet’s operating system.

“Our people have done an incredible job managing through the Max groundings, while providing the highest levels of customer service and one of the best operational performances in our history,” said Gary C. Kelly, chairman of the board and CEO, Southwest. “On behalf of the Southwest Board of Directors, we are grateful to our employees for their extraordinary efforts throughout the year and are pleased to share proceeds from our recent agreement with Boeing.”

“The airline remains confident that, once certified by the FAA, the enhancements will support a safe return of the 737 Max aircraft,” Southwest said in a press statement.

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FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.

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