Last Update: at 7:18

Agreement with Boeing

Tui defers delivery of remaining 737 Max by two years

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.

Boeing/Montage aeroTELEGRAPH

Boeing 737 Max from Tui: The company wants the remaining aircraft 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.

Thanks for stopping by. Aviation is a global business. That is why we want our news and insights to reach a global readership and why a selection of aeroTELEGRAPH articles will be available in English from now on. We are just starting off and will begin by offering one article per day. Of course we aim for more and plan on expanding our offer according to demand and our resources.
You can find all our news, insights and more on our German site.


The editorial staff reserves the right to moderate or shorten comments. Critical discussions are welcome. Abuse or comments with racist, sexist, off-topic, purely political or insulting content on the other hand will be discarded. There is no right to get a comment published. No correspondence is led regarding the decisions of the moderation.