Aeromexico reaches compensation deal with Boeing over MAX crisis

 Aeromexico reaches compensation deal with Boeing over MAX crisis

(Reuters) - Mexican airline Aeromexico said on Monday it had reached a compensation deal with Boeing Co related to the grounding of the planemaker's 737 MAX aircraft, joining a growing list of global airlines settling with the U.S. company.

Aeromexico did not disclose the size of the payment, but added that it remains in talks with Boeing and regulatory authorities. [nL4N29B30M]

Southwest Airlines Co, the world's largest 737 MAX operator, said in December that it had reached a confidential agreement with Boeing for a portion of a projected $830 million hit to operating income in 2019.

Turkish Airlines also agreed to a compensation deal with the planemaker but did not specify the size of the payment. European charter airline TUI has said that it was still in talks with Boeing.

Earlier on Monday, the Wall Street Journal reported that Boeing is considering plans to raise more debt to bolster its finances after the grounding of its 737 MAX jet.

The company is also thinking of deferring some capital expenditures, freezing acquisitions and cutting spending on research and development to preserve cash, the report https://www.wsj.com/articles/boeing-considers-raising-debt-as-max-crisis-takes-toll-11578308401?mod=searchresults&page=1&pos=3 said, citing people familiar with the matter.

Boeing did not immediately respond to a Reuters request for comment on the WSJ report.

Shares of the planemaker were down 1% at $329.78 in early trading.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel)

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Updated Date: Jan 07, 2020 00:07:02 IST