By Ian Walker 
 

TUI AG said Wednesday that it has agreed a compensation package and a new delivery deal with Boeing Co. for its 737 MAX aircraft over the next few years that will significantly reduced capital and financing requirements for the travel company.

TUI--which operates hotels, airlines and cruises, along with agencies that sell vacation packages--said that while the financial terms of the agreement are confidential, it will get compensation for a significant portion of the financial impact of the aircraft grounding over the next two years, as well as credits for future aircraft orders.

Under the deal, TUI will get less 737 MAX aircraft deliveries over the next few years than planned, with payment schedules amended accordingly. TUI expects to get less than half of the planned 61 MAX aircraft over the next two years with the average delivery schedule delayed by two years.

"The agreement provides TUI with compensation for a large part of costs that were incurred due to the grounding of the 737 MAX fleet," Chief Executive Fritz Joussen said.

The 737 MAX has been barred by regulators from commercial flight since March 2019 after two crashes in six months killed 346 people.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

June 03, 2020 02:00 ET (06:00 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.