American Airlines to Share Boeing Proceeds With Workers
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On Thursday, American Airlines stated that they are negotiating with Boeing Co. over compensation for the airline’s grounded planes and they will share some of the proceeds with their employees.
When the planes were grounded worldwide in March after two deadly crashes, Fort Worth-based American had 24 Boeing 737 MAX jets in total. As a result like other airlines, American has canceled thousands of flights. Moreover, it estimated that the grounding will reduce by $540 million its full-year 2019 pretax income.
The airline is negotiating with Boeing as to what that compensation looks like, and that Boeing has suggested that compensation could be in cash or in other forms, including their training’s support or spare parts.
The spokesman said without providing any figures that American expects to make part of the compensation eligible for their employee profit sharing. In October, American Airlines Group Inc. CEO Doug Parker said that any losses due to the Max grounding won’t be incurred by American shareholders, but they will be borne by the Boeing shareholders.
It is shown that Boeing has reached partial settlements with Southwest Airlines and Turkish Airlines, neither carrier disclosed details, while they’re still continuing to negotiate with others. Chicago-based Boeing has estimated an amount of $5.6 billion costs over several years.
However, it remains unclear when the MAX will fly again. In order to prevent a repeat of crashes in Indonesia and Ethiopia that killed 346 people, Boeing is still working more on software and computer updates. According to accident investigators, a key sensor malfunctioned and triggered an automated system to push the nose of the plane down in both crashes.
Before the planes can fly in the U.S, the Federal Aviation Administration would have to approve Boeing’s changes to the MAX, while regulators in other countries plan to conduct their own reviews.