Southwest pilots sue Boeing in Max jet fallout
It is getting ugly between Southwest pilots and Boeing.
The Southwest Airlines Pilots Association (SWAPA) filed a lawsuit on Monday against the planemaker for "deliberately misleading the organization and its pilots about the 737 MAX aircraft," according to the complaint. Southwest is the largest operator of the 737 Max in the U.S.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LUV | SOUTHWEST AIRLINES CO. | 29.29 | -0.17 | -0.59% |
| BA | THE BOEING CO. | 164.34 | -4.74 | -2.80% |
The allegations say that "SWAPA pilots agreed to fly the 737 MAX aircraft based on Boeing’s representations that it was airworthy and essentially the same as the time-tested 737 aircraft that its pilots have flown for years. These representations were false," the pilots allege.
“As pilots, there is nothing more important to us than the safety of our passengers,” said Captain Jonathan L. Weaks, president of the SWAPA. “We have to be able to trust Boeing to truthfully disclose the information we need to safely operate our aircraft. In the case of the 737 MAX, that absolutely did not happen.”
Commenting on the suit, Boeing told FOX Business:
Boeing has the greatest respect for the men and women who fly for Southwest Airlines. We are aware that their pilot union, SWAPA, has filed a lawsuit against Boeing related to the 737 MAX suspension of operations. While we value our long relationship with SWAPA, we believe this lawsuit is meritless and will vigorously defend against it. We will continue to work with Southwest Airlines and its pilots on efforts to safely return the MAX to service.
The Federal Aviation Administration took swift action in March, grounding all Max jets after two crashes -- just months apart -- involving the aircraft killed 346 people.
Last month, Southwest Airlines and Boeing began discussing reimbursement plans and Southwest CEO Gary Kelly wrote in a memo that the airline is "looking at ways to share proceeds as appropriate with all of our employees," according to WFAA in Dallas where the airline is headquartered.
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Southwest had been using 34 of the Max planes which have been grounded, creating a financial impact of $225 million in the first half of 2019 alone.
While Boeing hopes to get approval from the FAA to get the planes back in the air by the end of November, Southwest is preparing for the fleet to be grounded through Jan 2020.
With approximately 59,000 employees at Southwest, each would receive $3,813 if the airline decided to split a $225 million payout evenly.
“Our pilots should not be expected to take a significant and ever-expanding financial loss as a result of Boeing’s negligence. We look forward to a solution that helps Boeing restore the confidence of both the flying public and the pilots who operate its aircraft" added Weaks.
Boeing is currently looking at a much higher figure, $4.9 billion, for potential second-quarter settlements for damages incurred industry-wide.