By David Shepardson
(Reuters) - Boeing Co
The announcement came after American Airlines Group Inc
Neither airline disclosed the compensation. A number of airlines have struck confidential settlements with Boeing in recent weeks. Boeing said it does not comment on discussions with airlines.
Boeing's best-selling 737 MAX has been grounded since March, following two fatal crashes in five months that killed 346 people.
In an email to employees, Boeing said about 3,000 employees, mostly in manufacturing, engineering and fabrication, will be reassigned to other tasks. Most of those employees work at Boeing's Renton, Washington plant where the 737 MAX is manufactured while some are at Boeing's South Carolina operations.
Some staff will be reassigned to work on the 767 and 777/777X aircraft in Everett, Washington. Boeing has said it does not plan to lay off or furlough any workers as a result of the production halt.
Boeing also said it added a MAX storage facility in Victorville, California. Some employees from Renton will staff MAX airplane storage locations in Moses Lake, Washington and Victorville.
Boeing's biggest supplier, Spirit AeroSystems Inc
Reuters has reported the Federal Aviation Administration is not expected to approve the plane's return to service until at least February and potentially March or later.
U.S. airlines will not resume 737 MAX flights until at least early April, they have said.
Boeing and the FAA said Sunday they are reviewing a potentially serious wiring issue that could delay the return of the 737 MAX.
American said the compensation from Boeing will be received over several years, and of the total amount, more than $30 million will be used for the airline's 2019 employee profit-sharing program.
Southwest Airlines Co
Boeing shares ended the day up 0.29% at $333.74.
(Reporting by David Shepardson in Washington and Sanjana Shivdas and Shanti S Nair in Bengaluru; Editing by Leslie Adler and Cynthia Osterman)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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Updated Date: Jan 07, 2020 07:06:51 IST