Gol confirms $400 million refund from Boeing for problems with 737 Max
Brazilian airline also admitted it should reduce its 737-700 and 737-800 fleet
In its monthly update to investors, the airline Gol revealed that Boeing reimbursed it by $84 million due to the grouding of the 737 Max fleet and deliveries frustrated by the aircraft’s problems. The company also says that the US manufacturer will pay about $318 million in the coming years as part of an agreement signed in March.
Last month, Gol announced a review of the order for 737 Max jets, cutting 34 aircraft from an original 135-unit deal. The company received only seven planes and expected to have another 25 by the end of 2019. According to the report, Gol will not make payments for new planes in the next two years.
“By acting quickly and decisively, we reduce fixed costs while preserving employment of our employees and the company’s working capital in the short term. This provides us with liquidity needed to weather the storm,” justified Paulo Kakinoff, Gol’s CEO.
The Brazilian airline is also reviewing its 737NG fleet. By the end of the semester, 11 leased 737-800 units will be returned. Gol, however, admits that it may return another seven planes in the second half and withdraw another 30 jets between 2021 and 2022 from operation if the demand is not justified.
Currently, the company has a fleet of 129 aircraft with seven 737 Max out of service. Gol also announced that it plans to reduce the number of 737-700, its smallest jet and that today it gathers 23 aircraft.
Gol assured its investors that it has a robust cash position, with more than 10 months of reserves.