Boeing and Southwest Airlines have reached a confidential agreement for a portion of projected financial damages related to the grounding of the airline’s Boeing 737 MAX.
Southwest estimates this incremental profit-sharing accrual to be approximately $125 million USD, and officials said the money would be added to the company’s employee profit-sharing fund.
“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, CEO of Southwest.
Federal regulators ordered all 737 Max planes grounded on March 13, 2019, after the jets were involved in two fatal crashes.
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