ArgentoSystems wrote:smartplane wrote:Comments are in relation to Boeing compensation. There are three elements of OEM compensation. 1. Covered in the contract. Global grounding preventing delivery is FM. 2. Implied / past precedents. 3. Compensation Agreement. Most MAX customers are on CA V.1 or V1.1 to be read in conjunction with the original Sale/Purchase contract. Customers will want / expect V2.0 if the grounding extends beyond the start of 4Q19.
Global grounding is not a force major no matter much mental gymnastic you employ. If I sign a contract with you to deliver me a product with certain characteristics and comes delivery time you find that the item that you wanted to deliver to me is undeliverable due to defects then it is you problem. I don't care how you deal with it. Maybe give me a free upgrade to a better product, or pay whatever fines are specified in contract.
FM is something you can't possibly envision in advance and that allows you to break contract without consequences. Global grounding of MAX will not let anybody get away from the fulfilling their contracts.
You are 100% correct here. FM would be if an earthquake hit Renton and destroyed the tooling. A grounding due to an aircraft being deemed not airworthy is not FM. That is within the control of the manufacturer.