Icelandair has reached an agreement with Boeing to cover the cost of grounding of its six 737 MAX jets — Icelandair Group Hf announced.
Iceland Air is the first carrier to disclose such a settlement and said the ‘interim’ compensation agreement covers “a fraction” of total loss incurred by grounding its MAX fleet.
Both parties did not disclosed the settlement package, but it was estimated that Icelandair would lose around $1.3 million a day and reported an impact of the grounding on earnings at $140 million by 1 August.
Boeing has set aside $5.6billion for MAX customers, and have been dealing with each customer individually. Aviation Consultancy and Intelligence company IBA calculated a cost $150,000 per day for each plane, which would total around $9 billion to date for the grounded fleet alone.
There are more than 380 MAX jets have been grounded since March this year after two fatal crashes., and hundreds more planes that are waiting to be delivered after regulators lift a flight ban on the aircraft.