LOT Polish Airlines sues Boeing over 737 MAX

LOT Polish Airlines is suing the Boeing over the manufacturer’s 737 MAX jet. According to Poland’s state news agency, the airline is seeking at least $252.8 million to compensate for operating losses during the MAX’s global grounding.

The lawsuit, confirmed by a LOT spokesperson in a Reuters report, came after months of negotiations failed to reach a settlement.

A previous report from Simple Flying on those negotiations noted that there was noting in LOT’s contract for the aircraft that provided compensation as a result of technical issues.

The MAX was grounded following deadly crashes of the jet in October 2018 and March 2019 that killed 346 people.

A flight control system installed by Boeing (NYSE: BA) was acknowledged by investigators and the company as a factor in each crash.

The MAX began flying again in the U.S. and other countries late last year.

The 20-month grounding had a significant impact in Wichita, where Spirit AeroSystems Inc. (NYSE: SPR) builds the jet’s full fuselage and other components. None of Spirit’s work was implicated in either crash.

After continuing to build the MAX but not deliver them to customers throughout the last three quarters of 2019, Boeing halted production at the end of the year.

That led to 2,800 layoffs at Spirit, compounded later in the year by pandemic-driven cuts that saw the company let go of around 5,000 workers in total last year.

Spirit has gotten back to hiring and recalling workers in 2021 as it prepares to meet rising production rates in aerospace, with expected increases on the MAX being the biggest driver.

The company expects to have erased most all of the cuts of 2020 by the middle of the decade. bizjournals.com