trending Market Intelligence /marketintelligence/en/news-insights/trending/vo5V6PGH19VX3n4pgaPVCA2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Boeing to compensate Southwest for financial damages over 737 MAX groundings

Essential Energy Insights July 2020 - Issue 2

As COVID-19 Wears On, Regulators Examine Moratorium Extensions, Cost Recovery

Q&A Credit Risk Perspectives Series: COVID-19 Credit Risks and Recovery for Supply Chains

Assessing ESG Profiles And Returns Against The Broader High-Yield Sector


Boeing to compensate Southwest for financial damages over 737 MAX groundings

Southwest Airlines Co. said Dec. 12 that it had struck a confidential deal with Boeing Co. to be compensated for a share of estimated financial damages in connection with the grounding of the crisis-engulfed Boeing 737 MAX fleet.

Southwest's board authorized a sum of approximately $125 million to be shared among employees. The so-called "discretionary, incremental profit-sharing accrual" reflects a proportion of the anticipated jolt to the airline's 2019 operating income following 737 MAX fleet's grounding.

Southwest expects to finance the accrual as part of its annual 2019 profit-sharing distribution in 2020, details of which will be shared early next year. Such details will include the profit percentage every Southwest employee will be eligible to receive.

Negotiations over compensation for damages related to the 737 MAX groundings continue between Boeing and Southwest, which expects to account for essentially the entire compensation as a deduction in cost basis of both existing and future firm aircraft orders. This is expected to decrease depreciation expense in future years, according to a company release.

Southwest, which has continued to take hits to its earnings from the prolonged grounding of Boeing 737 MAX jets, on Oct. 9 suspended some Boeing 737 NG airplanes following a quick-check ordered by the U.S. Federal Aviation Administration after the aircraft maker discovered structural cracks on a plane in China.

Boeing continues to face criticism over its 737 MAX fleet that was grounded in March following multiple crashes. FAA Administrator Steve Dickson said Dec. 11 that the FAA is unlikely to lift the grounding of Boeing's 737 MAX aircraft before the end of 2019.

Boeing said in November that it was aiming for the fourth quarter of 2019 to get FAA certification for the software updates of the 737 MAX flight control system, which has been blamed for the plane crashes.

Boeing was also expecting to resume deliveries of 737 MAX planes to airlines as early as December before their potential return to commercial service in the following month.