American, the largest U.S. airline, said the compensation will
be received over several years. The airline will use more than
$30 million of the compensation for the airline's 2019 employee
profit-sharing program.
American said it does not expect any material financial impact
of the agreement to be realized in its fourth-quarter 2019
earnings and it will continue talks regarding compensation for
damages related to the MAX grounding beyond 2019.
The Association of Professional Flight Attendants, which
represents American Airlines' 28,000 flight attendants, said it
welcomed the news about compensation, and was evaluating the
details.
Boeing said it does not comment on discussions with airlines.
Boeing's best-selling 737 MAX has been grounded since two fatal
crashes in five months killed 346 people. The company is halting
production this month. A number of airlines have struck
confidential settlements with Boeing in recent weeks.
(Reporting by David Shepardson, Editing by Rosalba O'Brien)
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