LOT Reaches Agreement With Boeing Over Grounding of 787s

LOT Polish Airlines SA said it has reached a compensation agreement with Boeing Co. (BA) for the cost of grounding of its 787 Dreamliner planes earlier this year.

State-owned LOT plans to hold a news conference tomorrow to discuss the deal, spokeswoman Barbara Pijanowska-Kuras said today, without disclosing the value of the settlement.

The unprofitable airline had bet on the all-composite 787 to help restore earnings by cutting operating expenses on long-haul routes, only for the global fleet to be taken out of service for three months following battery fires. Treasury Minister Wlodzimierz Karpinski said in June that more than 100 million zloty ($33 million) in compensation was being sought.

Poland is satisfied with the agreement, the Rzeczpospolita newspaper reported today, citing Karpinski. It added that the terms won’t be disclosed because of a confidentiality clause.

A Dreamliner operated by LOT was also forced into an unscheduled landing in Iceland in September after the failure of a system that identifies planes to air-traffic controllers.

One of the carrier’s 787s was delayed in Bangkok last month with a power-related technical failure.

To contact the reporter on this story: Piotr Skolimowski in Warsaw at pskolimowski@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.