The German travel giant has reached an agreement with Boeing. The aircraft manufacturer pays a compensation for a «substantial part of the damage» by the grounding of the 737 Max. Tui also wants the remaining jets later.
It’s a large sum: In financial year 2018/19, which ended at the end of September, the grounding of the Boeing 737 Max resulted in costs of 293 million euros for Tui. If the grounding lasts until the autumn of this year, as it currently looks like, the German travel group expects further costs of 220 to 270 million euros. All in all, the problems with the new aircraft will cost them more than half a billion euros.
However, Tui will get a large part of the amount back. A compensation agreement had been reached with Boeing, «which covers a considerable part of the damage», the company announced on Wednesday (June, 3). The money will be paid back gradually over the next two years. In addition, credit will be given for future aircraft orders.
Tui gets only half as many aircraft
Tui currently owns 15 Boeing 737 Max. Eight more should have joined the fleet in 2019. But along with the compensation, the company has arranged a postponement of the delivery of the remaining 61 planes.
«In the next two years less than half of the originally planned aircraft will be delivered», a press release states. This supports the plan to reduce the fleet of the five Group airlines in Germany, the United Kingdom, Belgium, the Netherlands and Sweden as a result of the corona crisis. On average, deliveries will be postponed by two years.