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Icelandair reaches agreement with Boeing regarding future deliveries of 737 MAX and compensations

  • Andrei Menshenin
  • August 12, 2020
  • 2 minute read

Icelandair press-release

Icelandair Group has now completed agreements with all its creditors and reached a final settlement with Boeing regarding the impact of the suspension of the Boeing 737-MAX aircraft.

While the details of the final settlement agreement with Boeing are confidential, it reduces Icelandair’s MAX purchase commitment by four aircraft. The parties have agreed to a revised delivery schedule for the remaining six MAX aircraft that are expected to join Icelandair’s fleet from Q2 2021 to Q1 2022. Furthermore, the settlement provides additional compensation for Icelandair which covers a substantial portion of the damages incurred from the suspension and will mostly be realized by Q2 2021. This agreement strengthens Icelandair Group’s liquidity position and allows for more flexible fleet planning in the upcoming years. The MAX aircraft continues to be an important element of the Company’s plan to strengthen its business and increase flexibility and capability for growth.

In addition to the Boeing settlement, agreements on concessions with creditors have been reached. The negotiations with creditors have focused on restructuring cash outflows to match expected cash inflows. The agreements are conditioned upon the completion of the upcoming share offering and the Company entering into an agreement regarding a government guaranteed credit facility.

Discussions on a term sheet for a credit facility guaranteed by the Icelandic Government and to be provided by Islandsbanki and Landsbankinn are in its final stages. The facility will among other things be conditioned upon the completion of the upcoming share offering.

As previously announced, long-term collective bargaining agreements have already been completed with the pilot-, cabin crew- and aircraft maintenance unions which will increase the Company’s flexibility and competitiveness going forward.

As all agreements with key stakeholders have been completed, the Company intends to publish an information memorandum and a timeline for potential investors in the upcoming share offering in the next few days.

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7 hours ago

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The historical first ever visit of Boeing 737 MAX 8 #tficn in Reykjavik #birk.All photos by Jón Sverrir Sigurðarson for Flugblogg. ... See MoreSee Less

The historical first ever visit of Boeing 737 MAX 8 #TFICN in Reykjavik #BIRK.

All photos by Jón Sverrir Sigurðarson for Flugblogg.
  • Likes: 79
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TF-ICE Hefur nú lennt á BIRK! Sé ekki alveg hvað er svona historical við þessa lendingu.

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10 hours ago

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The first arrival of #tficn in Reykjavik #birk ... See MoreSee Less

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Wow 🙂

og aftur

Hvernig væri að menn hættu nú að leika sér. Þetta er bara flugvél.

I didn’t know the 737 max could land so safely.......

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13 hours ago

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SPOTTERS ALERTBoeing 737 MAX 8 #TFICNToday 6.March 10:00/11:00UTCKeflavik / ReykjavikIcelandair today will perform "a reassuring flight" with some media and other guests on board. The demo-plane arrival expected in Reykjavik #BIRK at 10:00UTC, departure from Reykjavik at 11:00UTC for approximately 1 hour flight.Here you can see how the first demo-flight in Iceland on Boeing 737 MAX 8 looked like: flugblogg.is/2018/04/15/icelandair-showed-to-public-its-first-boeing-737-max/ ... See MoreSee Less

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Icelandair showed to the public its first Boeing 737 MAX

flugblogg.is

The major Icelandic airline launched the aircraft with journalists around Iceland. Flugblogger was on board to learn abo...
  • Likes: 54
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  • Comments: 2

Comment on Facebook

abc7ny.com/10392221/?ex_cid=TA_WABC_FB&utm_campaign=trueAnthem%3A+Trending+Content&utm_medium=tru...

Missum við svo kannski alla bestu blaðamennina í..."óhappi"...

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