Brazil’s Gol to get $412 million MAX compensation from boeing

Boeing continues to feel in the impact of its 737 MAX crisis with the announcement by Brazilian airline Gol announcing on 13 May that it had received US$86 million out of US$412 million worth of compensation it is due from the aircraft manufacturer over the next few years due to the grounding of the MAX and re-adjustment that the airline has had to make to its order.

The airline grounded all seven of its MAX 8s, which were delivered on it began receiving on 28 June 2018. Following were another 25 of the type, but as yet these have not arrived and Gol claims that this has had a significant impact on its growth and fleet renewal plan. In addition to the compensation, Gol agreed to cancel 34 MAX from its order, being its total order to 95 from an initial order of 129.

During an investors meeting on Wednesday, Gol said it had more than ten months worth of cash reserves “to shield and strengthen it” during the Covid-19 crisis. The airline has grounded 120 aircraft, all Boeing 737NGs and MAX 8s, or 92% of its entire fleet. Although the airline was only operating 7% of its schedule compared to 2019. Gol said it expects that share to rise to 12% by the end of May, with the re-opening of bases at the Foz de Iguaçu, Navegantes, and Maringá airports, and the restart of a limited number of flights from Congonhas airport in São Paulo to Santos Dumont and Galeão airports in Rio de Janeiro.