Amer­i­can Air­lines to share Boe­ing pro­ceeds with work­ers

The Punch - - INTERNATIO­NAL BUSINESS -

AMER­I­CAN Air­lines said Thurs­day it is ne­go­ti­at­ing with Boe­ing Co. over com­pen­sa­tion for the air­line’s grounded planes and ex­pects to share some of the pro­ceeds with em­ploy­ees.

The As­so­ci­ated Press re­ported that Amer­i­can had 24 Boe­ing 737 Max jets when the planes were grounded world­wide in March af­ter two deadly crashes. Like other air­lines, Amer­i­can has can­celed thou­sands of flights as a re­sult. It es­ti­mated that the ground­ing will cut its fullin year 2019 pre­tax in­come by $540m.

A spokesman for Amer­i­can said Thurs­day that the air­line is talk­ing to Boe­ing “as to what that com­pen­sa­tion looks like.” Boe­ing has sug­gested that com­pen­sa­tion could be in cash or other forms, such as help with train­ing or spare parts.

Amer­i­can ex­pects to make part of the com­pen­sa­tion el­i­gi­ble for em­ployee profit shar­ing, the spokesman said with­out pro­vid­ing any fig­ures.

Amer­i­can Air­lines Group

Inc. CEO Doug Parker said in Oc­to­ber he was con­fi­dent that any losses due to the Max ground­ing “won’t be in­curred by Amer­i­can share­hold­ers, but will be borne by the Boe­ing share­hold­ers.”

Pi­lots and flight at­ten­dants have lost wages be­cause of can­celed flights. Pi­lots at Amer­i­can have let their air­line deal with Boe­ing, but pi­lots at South­west Air­lines have taken a dif­fer­ent course — their union is su­ing Boe­ing for lost wages.

Boe­ing has reached par­tial set­tle­ments with South­west and Turk­ish Air­lines — nei­ther car­rier dis­closed de­tails — while con­tin­u­ing to ne­go­ti­ate with oth­ers. Chicago-based Boe­ing has es­ti­mated the even­tual cost to reach $5.6bn over sev­eral years, although many an­a­lysts be­lieve that fig­ure will go much higher.

Mean­while, it re­mains un­clear when the Max will fly again. Boe­ing is still work­ing on soft­ware and com­puter up­dates to pre­vent a re­peat of crashes in In­done­sia and Ethiopia that killed 346 peo­ple. both crashes, a key sen­sor mal­func­tioned and trig­gered an au­to­mated sys­tem to push the nose of the plane down, ac­cord­ing to ac­ci­dent in­ves­ti­ga­tors.

The Fed­eral Avi­a­tion

Ad­min­is­tra­tion would have to ap­prove Boe­ing’s changes to the Max be­fore the planes can fly in the US Reg­u­la­tors in other coun­tries plan to con­duct their own re­views.

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