American Airlines to Share Boeing 737 MAX Compensation With Employees

Officials from American Airlines revealed they would share compensation received from Boeing for the 737 MAX grounding with employees.

According to The Associated Press, American has been forced to cancel thousands of flights since the airline’s fleet of 24 MAX planes were grounded as part of a worldwide investigation following two crashes that left 346 people dead.

American executives estimated the grounding would reduce its full-year 2019 pretax income by $540 million and has cost the carrier’s pilots and flight attendants thousands of dollars in revenue.

An American spokesperson told The AP the company is working with Boeing to determine how the compensation will be administered, but the airline believes it will be in the form of cash, training assistance, spare parts and more.

The carrier also expects a portion of the compensation to be eligible for employee profit-sharing.

Boeing has already reached undisclosed settlements with Southwest and Turkish Airlines and is working on agreements with other airlines who operate routes that utilize 737 MAX planes.

In total, the airplane manufacturer believes it will eventually issue $5.6 billion in compensation related to the grounding over the coming years, but several aviation analysts estimate the figure will be much higher when all claims are settled.

In December, Boeing released a new batch of “disturbing” documents to the Federal Aviation Administration (FAA) and Congress amid the ongoing investigation.

The new documents compound previously released information suggesting that Boeing may have cut corners in the plane’s development, with one senior engineer alleging the company prioritized cost over safety.