Turkish Airlines and Boeing have agreed on compensation for losses from grounded and undelivered 737 Max aircraft, a statement from Turkey's flag carrier said Wednesday.
"Boeing will cover some of our loss and the revenue that we cannot generate because our grounded aircraft are not used in operations," said the statement on a public disclosure platform.
The flag carrier stressed the difficulties it faced due to the grounding of Boeing's 737 Max aircraft, which has faced a troubled year. Close contact between the two companies was "never cut," Turkish Airlines added.
According to unverified Turkish media reports, Boeing has agreed to pay Turkish Airlines $120 million-$150 million to cover besides up to $75 million for training and parts.
The move comes after Turkish Airlines threatened to bring a lawsuit against Boeing due to uncertainty regarding the 737 Max. The 737 Max has been grounded since March after two crashes in Indonesia and Ethiopia killed 346 people within five months.
Currently, 24 of THY's aircraft are grounded, with 12 of them stationed in Seattle. The company is also awaiting the delivery of 75 more Boeing 737 Max jets.
Boeing's top-selling aircraft model was grounded worldwide after two crashes which killed hundreds of people and cost the company billions of dollars.