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Southwest's 737 MAX contract had a penalty clause of $1 million per aircraft that would trigger if Boeing's delivery contract for the 737 MAX failed to meet certain standards, particularly Southwest's insistence that no flight simulator training be required for the MAX

Meaning, the roots of the “no new type rating” requirement come from Southwest, not Boeing.



Presumably Boeing weren't under duress when they signed the contract.


The Boeing execs had their bonuses held against their heads.


Southwest and all the legacy carriers

So, how much they spent with the grounding again?


This is an interesting detail I had not heard. Can you link to a backstory on this? Why would such a contract ever be signed (especially for a technological product)?


There’s a really good podcast episode here:

https://engineered.network/causality/episode-33-737-max/

Basically they were looking for an edge against Airbus and a really big one was being able to promise that pilots wouldn’t need a separate certification from the existing 737, which is where that MCAS software came in trying to make the new hardware behave like the existing planes. The allegations about Southwest in particular got the most attention in this lawsuit:

https://www.seattletimes.com/business/boeing-aerospace/legal...




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