Boeing and Icelandair reach agreement on 737 MAX

Boeing and Icelandair have reached a final agreement on compensation for the problems concerning the 737 MAX aircraft. The sum involved has not been disclosed.

The compensation that has been agreed upon provides for a “substantial portion” of the damage Icelandair suffered, the airline said. Most of the compensation will be paid by Boeing in the second quarter of 2021. “This agreement strengthens Icelandair Group’s liquidity position and allows for more flexible fleet planning in the upcoming years.” The airline adds that the 737 MAX will remain an important element of its strategy over the coming years.

Alongside compensation, Boeing and Icelandair agreed that only four more aircraft out of the existing order need to be taken into service. Furthermore, the delivery schedule was adjusted, meaning that Icelandair will take delivery of the total of six remaining aircraft on order in the second quarter of 2021 and the first quarter of 2022.