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Southwest still negotiating compensation from Boeing

September 9, 2019

DALLAS (AP) — Southwest Airlines continues to negotiate with Boeing over damage caused by the grounding of the 737 Max.

Southwest Chairman and CEO Gary Kelly said Monday in a note to employees that the airline is considering ways to share the compensation with workers.

Kelly didn’t give details about the negotiations with Boeing.

Southwest has the world’s biggest fleet of Boeing 737s, including 34 Max jets and more on order. It has taken the planes out of its schedule through Jan. 5 — longer than American and United.

Boeing said it does not comment on arrangements with particular customers, but it said in a statement that “we will continue to work closely with them to reach a fair and reasonable outcome.”

Max jets have been grounded since March, after two deadly accidents. Boeing hopes to get them flying again later this year.

Boeing took a $4.9 billion after-tax charge in the second quarter to cover Max-related compensation to airlines. Boeing delivered nearly 400 of the planes before they were grounded.

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