GOL reaches agreement with Boeing on 737 MAX cash compensation, orders, payment terms

GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL) (B3: GOLL4) has announced a deal with The Boeing Company regarding compensation, changes to future orders and associated payment schedules on the 737 MAX, the company said.

In the first quarter of 2019, the unexpected grounding of the 737 MAX by regulatory agencies worldwide, including the FAA, the EASA and the ANAC, resulted in seven (7) of GOL´s operational 737 MAX aircraft being grounded, and the non-delivery of 25 737 MAX aircraft scheduled for 2019. This grounding adversely impacted GOL´s operations, growth and fleet renewal plan.

After carefully considering these impacts, the Company and Boeing reached an agreement that provides GOL with compensation and flexibility to implement its fleet requirements to match supply with demand. While the details of the agreement are confidential, it includes cash compensation and the termination of 34 orders, reducing the Company´s remaining firm orders for 737 MAX aircraft from 129 to 95 and increasing flexibility to meet GOL´s future fleet needs.

GOL Linhas Aéreas Inteligentes S.A. serves more than 37 million passengers annually. With Brazil´s largest network, GOL offers customers more than 750 daily flights to over 100 destinations in Brazil and in South America, the Caribbean and the United States.