American Airlines to share MAX compensation from Boeing with workers
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
American Airlines, the second-largest operator of Boeing 737 MAX aircraft in the U.S., won’t see the planes back in service until at least April.
The grounding has affected the company’s bottom line as it’s attributed the suspension of various routes to the resulting aircraft shortage.
But now, some of its employees will see a boost in compensation as a result.
American reached a deal with with Boeing to be compensated for some of its losses, and the airline said it will pass some of that money along to its employees.
“Despite the ongoing challenges the grounding has brought, American Airlines team members continue to do an incredible job caring for our customers,” American CEO Doug Parker said in a statement on Monday. “On behalf of the Board of Directors, we are proud to take the step of including this compensation in our 2019 profit-sharing program, even though the compensation will be received over several years.”
Sign up for the free daily TPG newsletter for more airline news.
The move is not a surprise. Though a deal with Boeing had not yet been reached, American has said previously – and as recently as last week – that it anticipated sharing some of the compensation with workers.
American’s agreement with the manufacturer follows a similar deal between Boeing and Southwest.
The global fleet of 737 MAX aircraft has been grounded since March, following two fatal crashes in five months that left 346 people dead. An automated flight control software known as MCAS is suspected of contributing to both disasters, and Boeing has been working with regulators, airlines and other stakeholders to address the problem — though a workable solution has been more elusive than initially anticipated.
With hundreds of aircraft grounded and hundreds more undelivered, Boeing has faced increasing pressure to respond, and compensate airlines for the unusable planes.
The manufacturer recently announced a temporary suspension of 737 MAX production, which it said would help it deal with the backlog more efficiently.
Featured photo courtesy of American Airlines.
WELCOME OFFER: 60,000 Points
TPG'S BONUS VALUATION*: $1,200
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
- No delivery fees for a minimum of one year on qualifying food purchases with a DashPass subscription from DoorDash -over a $100 value. Activate with your Chase Sapphire card by December 31, 2021.
- Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.