Turkish Airlines has struck a deal with Boeing over its 737MAX orders and compensation for lack of ability to use the ones it has grounded.
The deal is said to be worth US$255 million.
This includes $150 million in compensation – either as cash or credit towards new aircraft, and $75 million as training and parts credits.
So far Turkish has 12 delivered and grounded and 12 more waiting to be delivered, out of a total of 75 737MAX ordered.
The payment total is significant and if used as a guideline across some 700 aircraft values each at about $10.625 million each in compensation – putting the total at near $8 billion in compensation – much in line with analysts estimates. With legal and victim compensation costs, the compensation bill alone is likely to be near the £11 billion mark.
While that’s a great deal of money to anyone, it’s still a relative drop in the ocean compared to Boeing’s annual income and its ability to ride the process out. It’s about the income from 30 787-9’s, just 3% of the total so far built.