Shares of Boeing (BA) - Get Report fell Tuesday after Turkish Airlines said it and the Chicago aerospace giant had agreed on a plan to reimburse the carrier for losses resulting from the grounding of Boeing's 737 MAX planes.
“Turkish Airlines and Boeing came to an agreement concerning compensation for certain losses caused by the grounded and undelivered Boeing 737 MAX aircraft,” the Turkish company said in a statement.
It didn’t elaborate, but Turkey’s Hurriyet newspaper reported that the airline will receive $150 million cash and avoid $75 million in expenses for replacement parts and training.
Turkish Airlines prior to the grounding received 12 MAX planes out of 75 it had ordered, according to Reuters. It was due to have received 12 more since.
The deal will halt payments for all the 737 MAX jets it bought this year, according to Hurriyet. Boeing’s payments will cover only the airline’s losses for this year, and it retains the right to ask for payments to cover future losses.
Boeing grounded the 737 MAX in March after two of the planes crashed in five months, killed 346 people.
Turkish Airlines isn’t the only carrier seeking recompense from Boeing. Southwest Airlines (LUV) - Get Report, the biggest user of the MAX, said Boeing earlier this month agreed to fork out part of the $830 million loss of operating income that the airline has suffered this year due to the grounding.
European charter airline TUI said Tuesday that it continued to negotiate with Boeing, and other airlines have said they expect to be reimbursed.
Boeing shares traded at $323.92 at last check, down 0.8%.