TUI and Boeing have agreed on a comprehensive package of measures to offset the consequences of the grounding of the 737 MAX. While the details of the agreement are confidential, it provides compensation which covers a significant portion of the financial impact, as well as credits for future aircraft orders. The compensation will be realized over the next two years.
In addition, both parties have agreed to a revised delivery schedule for the 61 737 MAX aircraft on order, meaning that TUI will get fewer 737 MAX deliveries from Boeing than previously planned in the next several years. The associated payment schedules have been adapted accordingly. As a result less than half of the originally planned 737 MAX aircraft will be delivered to TUI in the next two years. On average, compared with the original scheduling, the 737 MAX deliveries will be delayed by approximately two years.
This will significantly reduce TUI’s capital and financing requirements for aircraft in the coming years and supports TUI’s plan to reduce the size of fleet of its five European airlines in the wake of the corona-virus crisis. It was agreed not to disclose the financial details of the agreement.
